Billionaire Mike Ashley Misses Out On $380 Million Newcastle Sale As Saudi Arabia Backed…

The Saudi Arabia-back consortium hoping to seal a deal to purchase Newcastle United Football Club this summer has withdrawn from the process following a summer of uncertainty for team owner billionaire Mike Ashley and the Newcastle faithful.

The consortium, led by Saudi Arabia’s Public Investment Fund, London-based venture capital and private equity firm PCP Capital Partners, and the U.K. billionaire Reuben brothers, released a statement to Sky Sports on Thursday claiming that the “investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise.”

Adding, “With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club. We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position of its history, tradition and fans’ merit.”

The withdrawal of the bid to purchase Newcastle United follows accusations that Saudi Arabia allowed beoutQ-brand satellite TV boxes to illegally broadcast Premier League games causing a significant financial loss to the legitimate broadcast rights holders in the region, Qatari company beIN.

Kieran Maguire, from the University of Liverpool, an expert on football club ownership and accountancy, told Forbes that the withdrawal was inevitable. “Once the Saudi authorities banned beIN two weeks ago the writing was on the wall. Fans have been messed around.”

Dave Smith, a Newcastle fan living in London also told Forbes that the withdrawal of the offer was “inevitable,” adding, “Nothing good ever happens to Newcastle.”

On The Wall

In June, a Premier League executive told Forbes that the Premier League’s decision was “a flip of a coin,” as to which way it would go. Putting the likelihood of the consortium’s bid passing the ownership test at just 50/50.

In mid July, following months of scrutiny over Saudi Arabia’s connection to the controversial beoutQ boxes (that the World Trade Organization found were used to illegally stream Premier League games and sporting events across Europe), Saudi Arabia decided to “permanently terminate” beIN’s legitimate license in Saudi Arabia. 

Saudi Arabia alleged on a government website in mid July that beIN Sports “abused its dominant position through several monopolistic practices.”

The removal of beIN Sports means, according to its spokesperson, that there is now no legal way to watch the Premier League in the country for at least two years.

Back in April, Newcastle owner and U.K. billionaire Ashley accepted a bid to sell the team to the consortium for $380 million. The next step was to get approval from the Premier League’s owners’ and directors’ test, where it got stuck.

Newcastle fans, who have endured a difficult relationship with Mike Ashley, will have to wait again for a possible new team owner.