Newcastle United owners launch major sports bid by announcing multi-billion dollar PIF move

Newcastle United’s owners have launched a specialised sports investment company to back up its flurry of deals over the past few years.

Saudi Arabia’s Public Investment Fund (PIF) has announced the creation of SRJ Sports Investments, described to be a ‘sports investment company that aims to accelerate the growth of the sports sector in Saudi Arabia and MENA.’

It was reported last month the new company would also bolster opportunities across the globe, however the initial press release focuses on bringing the sports world to the Middle East.

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Perhaps in line with PIF-owned Newcastle United front-of-shirt sponsor, Sela, the wealth fund’s new arm aims to invest in acquiring and creating new sports events IP, commercial rights of popular and prominent sports competitions and hosting major global events in Saudi Arabia.

It will also target businesses which specialise in offering unique fan engagement activities and transformative sports technology in a bid to catapult the state to being one of the ‘world’s leading sports and entertainment destinations.’

It’s believed PIF’s new direction won’t impact Newcastle United directly, not least in the way the majority owners interact with the club. However, more sports investment in Saudi Arabia, and the drive to hold more events and competitions, could see the Magpies return to the Middle East in competitions similar to United v Al-Hilal during the international break last December- but on a much larger scale.

In June it was reported Saudi Arabia had withdrawn their bid for the 2030 World Cup and PIF has since turned its attention towards tennis and F1.

Allegedly, PIF are eyeing up a deal to bring tennis’ United Cup to the Middle East after the competition was axed by Australia after three years. It’s an attractive investment for the fund as it’s the first tournament of the season for both the men and women’s game, attracting the very best players.

Earlier this year, it had a multi-billion dollar offer rejected by Formula 1.

One thing is for sure and that is PIF has more than enough funds to make some real moves. As seen with the PGA-LIV Golf merger, the fund has spent almost $8bn on acquisitions over the past 18 months. But there’s a lot more where that came from, with $38bn at PIF’s disposal.