Newcastle owners PIF ‘bailing out’ Tottenham as £60m deal close

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It is hard to argue that the Saudi Public Investment Fund have been anything other than transformative for Newcastle United since the takeover in October in 2021.

PIF have been the Premier League’s biggest disruptors since Man City’s Abu Dhabi funders changed the ownership game with their investment in 2008.

Among the more established members of the Premier League elite, the Newcastle takeover prompted fears and led to new regulations on associated party transactions.

As a club whose owners’ wealth is utterly dwarfed by PIF and who champion a self-sufficient model, Spurs wanted to curb Newcastle’s power as much as possible.

The North London club have consistently voted in favour of stricter Profit and Sustainability Rules (PSR) that tie spending to revenue as tightly as possible, for example.

Newcastle’s Saudi owners meanwhile have spent as much as possible under PSR and appear desperate to raise revenue in order to fund blockbuster transfers.

However, one finance expert has now suggested that PIF’s strategy at St James’ Park is perhaps not as sophisticated as some think.

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PIF-funded Richarlison deal could damage Newcastle

As well as Newcastle, PIF either own or exert significant influence over over half of the clubs in the Saudi Pro League.

This has seen them spend north of £2bn over the last two seasons, with some of the biggest names in football signing for Saudi clubs.

A number of Newcastle players have also been linked with Saudi clubs, and Allan Saint-Maximin joined Al Ahli for £25m last summer.

That deal caused controversy, with some clubs claiming that Newcastle had used their PIF links to inflate the value of the deal and boost their PSR position.

But the Magpies are far from alone in having banked huge fees for players they may otherwise have struggled to generate major profit from.

For example, Tottenham striker Richarlison has been heavily linked with a move to the Saudi Pro League.

Now, it is believed that unnamed Saudi club has offered favourable terms to Richarlison, with Spurs keen to recoup most of the £60m they paid for the Brazilian two years ago.

But finance expert and former Man City adviser Stefan Borson has suggested via X that handing a big fee to a direct rivals for European football could be harmful to Newcastle.

“So many teams waiting, hoping for a Saudi bail out,” he said.

“How PIF on the one hand watch these clubs target Newcastle for 3 years but then bail those same clubs out of expensive, average players is beyond me.

“Almost as if they aren’t anywhere near as joined up as suggested.”

TBR Analysis: Who takes priority for PIF, Newcastle or Saudi clubs?

There is no doubt that PIF would spend whatever it takes to propel Newcastle to the summit of European football.

CEO Darren Eales has already said that Newcastle will always spend as much as is possible under PSR.

However, the current spending rules mean that turning Newcastle into a sustainable force will take a long, long time.

In the Gulf by contrast, PIF are not burdened by curbs on spending.

That goes for both club and international football, with the nation set to host the World Cup in 2034 having unveiled their plans to build 11 new stadiums earlier this month.

PIF will continue to do everything they can to bring glory to St James’ Park, but the domestic game and their international ambitions likely take precedence for their geopolitical aims.