British investor Amanda Staveley will sell her stake in Newcastle United to the Public Investment Fund (PIF) of Saudi Arabia and the Reuben Brothers. This move will further consolidate the control of the top shareholders over the Premier League club.

Amanda Staveley has been a key figure in Newcastle United’s recent history. She played a pivotal role in the club’s acquisition from Mike Ashley in 2021. Her firm, PCP Capital Partners, held a minority shareholding in the club. However, it was announced on Friday that PIF and RB Sports & Media, owned by the British businessmen Reuben Brothers, would acquire these shares.

The acquisition is part of PIF’s long-term strategy to develop Newcastle United into a formidable competitor in both domestic and European competitions. Post-acquisition, PIF will hold approximately 85 of the club, with the Reuben Brothers owning the remaining 15 percent.

Staveley’s exit marks a significant moment for the club. Despite PIF leading the ￡305 million takeover of Newcastle in October 2021, Staveley was instrumental in facilitating the deal. She emerged as the face of the ownership group, and her departure shifts the day-to-day running of the club to Darren Eales, who took over as chief executive in July 2022.

Staveley and her husband, Mehrdad Ghodoussi, (photo above), were featured in an Amazon series about Newcastle, where they appeared alongside PIF governor Yasir Al-Rumayyan. Staveley’s PCP vehicle owned roughly 6 percent of the club. Despite her departure, sources close to Staveley suggest that she is likely to remain involved in football.

Staveley’s exit comes amidst a costly legal dispute with Greek shipping magnate Victor Restis. In March, she faced a bill of ￡3.5 million after losing a UK court case.

Newcastle United post-Amanda Staveley

Al-Rumayyan, the chair of Newcastle, expressed his best wishes to the departing shareholders as they shift their focus to other business interests. He reaffirmed the ownership group’s commitment to building on the existing foundations for the long-term, sustainable success of the team.

PIF, with $925 billion in assets under management, has invested billions of dollars in sports businesses worldwide, from golf to motor racing. However, Newcastle United remains the fund’s only asset in European football. The regulatory environment for clubs has become stricter since the acquisitions of Chelsea by Russian billionaire Roman Abramovich in 2003 and Manchester City by Sheikh Mansour, a member of Abu Dhabi’s ruling family, in 2008. Clubs are now limited to ￡105 million of losses over three seasons, with exceptions for investment in infrastructure and other areas.

Following PIF’s acquisition of Newcastle, Premier League owners voted to tighten rules on sponsorship deals with related parties. This move was designed to prevent PIF-backed companies from funnelling money into the club. However, Newcastle has signed sponsorships with its Sela events organiser and Noon online retailer, and has flown to Saudi Arabia for training camps, thereby boosting the club’s finances.

On the pitch, Newcastle United has enjoyed quick success after the takeover, qualifying for the UEFA Champions League at the end of the 2022-23 season. The club’s revenue increased nearly 40 percent to ￡250 million that season.

In her parting statement, Staveley expressed gratitude for having played a part in setting up the club for future success. She affirmed that she and her husband would remain lifelong fans of the club. This development marks a new chapter in the history of Newcastle United, with the promise of exciting times ahead.

While the sale marks the end of an era with Staveley’s departure, it also heralds the beginning of a new chapter in Newcastle United’s history. The club is poised for growth and success, backed by the financial strength of its new owners and the strategic vision of its management. However, it will also need to navigate the challenges of a stricter regulatory environment and the expectations of its passionate fanbase. Only time will tell how these changes will shape the club’s future.

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