Saudi Arabia’s sovereign wealth fund was allowed to buy Newcastle United – under the condition of the Premier League that the club is not under the control of the state of Saudi Arabia. There are new doubts about that.
When Saudi Arabia’s sovereign wealth fund took over 80 percent of the Premier League club, the Middle Eastern buyers had to assure the Premier League that the Public Investment Fund (PIF) was separate from the Saudi state.
The Premier League only agreed to the takeover after lengthy negotiations, spoke of “Legally Binding Representations” of the PIF that the club is not controlled by the state of Saudi Arabia. Should it “contrary evidence” could lead to the Saudi-led consortium being ousted as owner of the club, Premier League boss Richard Masters told the BBC at the time. Co-owner Amanda Staveley expressed a similar sentiment. This “contrary evidence” could now exist.
Sovereign wealth funds: separated from the state in the UK, representative of the state in the US?
In England is currently about Court records from the USA discussed. There is a legal dispute in golf between the PGA Tour and the Saudi-funded tour LIV Golf. A judge ordered the release of documents and that the PIF’s fund manager, Yasir Al-Rumayyan, be available to testify. Al-Rumayyan (pictured above) is also the chairman of Newcastle United.
The PIF responded with dismay to the judge’s order, according to court documents. This is “an extraordinary encroachment on the sovereignty of a foreign state” it was said. The PIF and Al-Rumayyan are “no ordinary parties (…), they are a sovereign institution of the Kingdom of Saudi Arabia”. The interests of the PIF are “by law those of the Government of Saudi Arabia”, it said. Al-Rumayyan is even called “an acting minister of government” referred to as having a right to immunity.
The question is: how does it fit that the Premier League considers the sovereign wealth fund separate from the state of Saudi Arabia, while that sovereign wealth fund clearly describes itself as a state entity in US courts? The Premier League has not yet commented on the developments.
St James Park, the stadium of Newcastle United
Amnesty: “Premier League must review assurances”
Peter Frankental, director at Amnesty International in Great Britain, spoke of an irony. “The fact is that Saudi sportswashing affects numerous sports and governing bodies need to respond much more effectively. The Premier League will need to review the assurances.”
For some time now, Saudi Arabia has been trying to adopt the strategy of the Emirate of Qatar and gain global political influence through sport. The plan is called “Vision 2030”. Football has become a key tool in this regard.
Great Britain is planning an independent supervisory authority, but human rights violations should probably not play a role in the takeover of clubs in the future either. For Manchester United, there is currently a bid for Qatar, while Manchester City is controlled by a fund from Abu Dhabi’s royal family.
Human rights situation in Saudi Arabia very bad
Saudi Arabia is repeatedly criticized for human rights violations. The death penalty is carried out in many cases, and the court proceedings are often considered unfair. Freedom of travel and freedom of expression are restricted. In the press freedom ranking, Saudi Arabia ranks 166th, behind Somalia, Afghanistan and Russia. In 2018, according to American intelligence reports, the critical Saudi journalist Jamal Khashoggi was murdered and sawn to pieces in Turkey on the orders of the Saudi Arabian government.
Khashoggi’s widow Hatice criticized the takeover of the club at the time. “It’s so awful to read that money was once again more important than justice”she wrote on Twitter. “What a shame and embarrassment for Newcastle that they are now owned by those who murdered Jamal Khashoggi.”