What still stands in the way of the Saudi-led Newcastle United takeover?

Newcastle United’s Saudi-led takeover appears closer than ever following the news that a key deal blocking barrier has been removed.

Is the Newcastle United takeover about to be given the green light after the barrier of separation and ultimately piracy was weakened?

Well, it’s not quite that straightforward. Here we take a look at the work that still needs to be done on the deal - and how the next steps in the process may look.

Sign up to our NewcastleWorld Today newsletter

The i newsletter cut through the noise

Price - just how much is Newcastle United worth?

Even with all of the barriers removed, and there are still some, a price must be renegotiated for the club.

Mike Ashley and the buyers agreed an initial £300m deal, that was then renegotiated up to around £340m following the end of the June 2020 deal agreement.

Mike Ashley is closing in on securing the sale of Newcastle United FC.

Newcastle United, post-covid is, like many other clubs, in a worse financial state and slightly less valuable than they were previous to that. The period of exponential Premier League growth has stunted somewhat, but appeal still remains for a country looking to wash clean their sins of old on one of the biggest sporting stages on the planet.

Will the legal cases continue, if the Premier League green light the deal? And will that make up the shortfall?

All questions that need to be asked.

Buyers - what will the buyout look like?

Rumours have long circled around that when a deal for Newcastle United does go through, it may look slightly different to the one presented to the Premier League back in April 2020.

We’ve had talk of restructures, reduced percentages and more.

The latest rumours suggests PCP will be edged out of the deal. We’ve even seen other rich businessmen with PIF links suggested as possible investors.

At this stage, it is our understanding that remains rumour and conjecture and PCP, with the Reubens, remain a key component of the PIF-led deal.

Amanda Staveley and Mehrdad Ghodoussi, of PCP Capital Partners.

Timescales and tests - when will the deal happen?

Two legal cases remain active. One an arbitration and the other a Competition Appeal Tribunal case.

Will either be needed? The first is unlikely to be needed if the separation argument is disarmed.

If the pirate (Saudi) is no longer the pirate, then what are the league fighting for? Especially when BeIN appear happy to resolve the matter amicably, eventually.

The next question is what happens with the owners’ and directors’ test? Will it need to run and will the directors pass it?

Premier League QC Adam Lewis answered that one in the CAT jursidiction hearing. He told the panel that the deal would “pass” if separation between KSA and PIF was proven.

The other directors did not, and would not, encounter any issues in the test framework.

Key details of note

It is NewcastleWorld’s understanding that the club have been working on breaking the logjam, outside of the legal cases, since late July.

Sources urged “patience” and remained hopeful a deal could be worked out with the Premier League without the need for arbitration or CAT. This stance was highlighted by the brief, joint statement released back in July after the initial postponement of the arbitration, a change from NUFC’s usual fiery approach towards the governing body.

As an aside, reports of Staveley, Reuben and Ghodoussi being on Tyneside have, for now, been played down.