Finance guru: PIF have used Newcastle United as ‘leverage’ as £653m deal agreed
The Saudi Public Investment Fund have used Newcastle United as “leverage” to expand their portfolio of UK investments.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the sovereign wealth fund’s latest blue-chip company acquisition.
PIF have paid £78million to become the largest individual shareholder in Aston Martin, per Sky News earlier this month (15 July).
The deal is part of a wider £653m fundraising initiative enacted by the iconic Warwickshire-based card manufacturer.
PIF paid just under half of that figure to buy 80 per cent of Newcastle from Mike Ashley in October last year.
Critics of the deal claim it is a ploy to sportswash the Saudi state’s image in the West in order to pave the way for further investment.
Plumley suggests that the Newcastle takeover may well have played a part as PIF brokered the Aston Martin deal.
“It is all part of PIF’s big play,” he told Football Insider’s Adam Williams.
“There was always going to be a wider strategy to invest in UK businesses and infrastructure. Newcastle were part of the leverage to drive that through.
“In retrospect, it makes sense when you look at the Newcastle takeover. Aston Martin is a flagship brand. It’s high profile and high worth.
“It certainly appeals to a certain type of clientele, so it makes sense that they would do this in tandem with the Newcastle takeover.”
In other news, Newcastle United and Leicester City in race to sign Ludovic Ajorque.