Kieran Maguire delivers Newcastle verdict as £200m PiF windfall secured
PIF’s takeover of Newcastle United was motivated by gaining power and influence – it would “not make a dent” if they collapsed financially.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about PIF’s intentions behind the £305million buyout last October.
The Saudi Public Investment Fund controls over £400billion worth of assets, including a 13.3 per cent stake in American video game firm Activision.
Activision was acquired by Microsoft in a £50.5bn deal earlier this week, the tech giants’ biggest-ever purchase.
In figures released via Twitter on Tuesday (18 January), Maguire calculated that PIF will rake in £200m profit from the seismic agreement.
PIF have stakes in Disney, Boeing, Facebook, Uber and the Bank of America among thousands of others companies.
Maguire analysed where Newcastle rank in terms of the controversial sovereign wealth fund’s list of priorities.
“In terms of financial commitment and risk, Newcastle are very low on the list of PIF’s investments,” he told Football Insider‘s Adam Williams.
“If Newcastle failed financially, it would not make a dent as far as PIF are concerned.
“Where they are much larger is in terms of the voice that they give PIF and the attention they bring to them.
“Football is a small industry with a disproportionately large degree of scrutiny.
“This is where PIF will be picking up additional comments and attention. If it’s done properly, they can benefit from that.”
PIF have been accused of attempting to use soft power through sport to lend legitimacy to the oppressive Saudi state.
Per The Athletic today (21 January), Newcastle boss Eddie Howe confirmed his squad would visit Saudi Arabia during the upcoming winter break.
In other news, pundit suggests Newcastle united could seal four more signings this month after £35million Benoit Badiashile update.