Finance guru: This is PIF’s ‘real motive’ at Newcastle after new £746m takeover completed
Newcastle United are not the most lucrative investment in the Saudi PIF’s portfolio – but their motives with the club are “non-financial”.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about PIF’s latest mega-money acquisition.
Industry experts Eurogamer reported on Tuesday (25 January) that the sovereign wealth fund has completed a £746million takeover of ESL.
The esports platform is the latest addition to the PIF powerhouse, which also includes stakes in Disney, Uber and Facebook.
PIF completed a £305m buyout of Newcastle in October last year and aim to turn them into a European superpower.
But human rights groups such as Amnesty International have accused PIF of using football to lend legitimacy to the authoritarian Saudi regime.
And although the value of the takeover pales in comparison to their other ventures, Newcastle can provide “soft power” for PIF, explains Plumley.
“Of course, £305m is a big investment,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“But it’s not the biggest thing they invest in. Their portfolio cuts across different industries.
“Those come with their own respective benefits. That is a lot about spreading the net wider, but the other thing with Newcastle is the wider picture.
“You can see it front and centre with the fact they have just flown out to Saudi Arabia for the winter break.
“A lot of that is non-financial. There is a bit of soft power, reputation building stuff. That’s the real motive.
“They didn’t buy Newcastle to make money, that wasn’t the point. And nor do they need to make money out of them.
“It was about leveraging themselves against Newcastle and looking to do something good with a football club.
“If that becomes a sporting success story, then that generates a lot of positive media for PIF.”
As relayed by The Athletic last Friday (21 January), Eddie Howe revealed Newcastle will visit Saudi Arabia over the winter break.
The manager also hinted at a possible friendly match in Riyadh.
In other news, pundit tips Newcastle United to land Dan Burn and three more signings after source’s update.