Newcastle United takeover Q&A: What this week means for PCP, Saudi & Reubens deal

This week is being billed as a potential huge week for Newcastle United and the stalled takeover of the football club by the PCP Consortium.

Eighteen months after a deal was originally agreed, the Public Investment Fund of Saudi Arabia, Reuben Brothers and PCP Capital Partners all await progress on whether their £300+ deal will be allowed to pass by the Premier League.

And in order to force some kind of decision, Mike Ashley, through St James Holdings Limited, is taking legal action against the top flight. The first skirmish in that fight, a totally separate battle to the arbitration proceedings, will come on Wednesday, as it will be decided whether CAT have the jurisdiction to rule over this legal fight - or it should be reverted to a private arbitration.

Here, our writer Liam Kennedy takes a look at the key questions surrounding the hearing - and the takeover landscape in general.

Is this hearing crucial in the possible takeover process?

It is certainly being seen as such by those close to the deal. Many are waiting on the decision of this hearing to then plot their next moves. So if a positive result arrives, expect some bullish posturing, with another very public statement not out of the realms of possibility.

A negative result? Then who knows? A scratching off of the CAT case would close an avenue seen as a potentially lucrative one in the legal fight, by those placed on the legal battlefield by Ashley & Co.

The hearing has the potential to be game-changing when it comes to the legal landscape set between clubs and governing bodies also. A ruling in favour of St James Holdings Limited could set a precedent for disputes across the game of football, and other sports. The Premier League are arguing that Newcastle signed up to a legal process, where disputes are settled via arbitration, if needed, and in private. Newcastle are arguing they should be able to seek action outside of that framework, when what they believe to be wrong-doing has taken place.

Put simply, this has the potential to be huge not only for Ashley in his pursuit of a deal and compensation, but also have repercussions well beyond the takeover.

How quickly can fans expect a decision?

The hearing itself will be one day. It will start at 10.30am and will finish by the close of play on Wednesday.

CAT confirmed the above to NewcastleWorld on Monday.

Also there are two options on the decision - and this bit is totally up to the judge and the panel.

A decision can be made on the day at the end of the hearing. But also judgement may be reserved and a decision announced at a later date. Should this transpire, there is no strict timescale on this.

Will success for Ashley in this hearing force through a takeover?

No. But it will definitely help the fight, in the eyes of those driving the deal forward legally.

There is a belief the confidentiality which exists in arbitration is hampering progress - and a more open and honest conversation, in public, is needed.

The club’s stance on this matter is very telling. They are clear about not having anything to hide with regards these takeover dealings. And they want the Premier League to take the same outlook.

Are all parties still interested in buying the football?

This is the million dollar question.

It is NewcastleWorld’s understanding that all parties remain committed to the deal, for now.

The money in the deal, PIF, who would take an 80% stake as part of the previous arrangement, are not front and centre in this battle and instead await guidance from PCP.

If a pathway can be cleared it is then up to PCP to present that to PIF - and then we will really know if everyone has stayed true to their word, and the original arrangement.