From Telegraph.co.uk
Saudi Arabia in talks to buy stake in Leicester, Gloucester, Northampton and Newcastle rugby clubs Exclusive: Stadium naming rights and a rugby academy in Saudi Arabia are on the cards if a deal goes through
Charles Richardson, RUGBY REPORTER 31 January 2024 • 7:11pm
Saudi Arabian investors are in discussions to invest millions into four of England’s top-flight rugby clubs.
Telegraph Sport can reveal that associates of the Saudi sovereign Public Investment Fund (PIF), which took an 80 per cent stake of the Premier League’s Newcastle United in 2021, have held discussions with Gloucester, Leicester Tigers, Northampton Saints and Newcastle Falcons about proposed seven-figure investments.
It is understood that the group are seeking control of stadium naming rights and the establishment of a rugby academy in Saudi Arabia as part of any potential stake in the four clubs, an investment which could be worth as much as a combined £60 million to the clubs involved.
Senior Premiership executives are thought to be aware of the discussions but the organisation told Telegraph Sport that the league could not comment on individual club matters.
Even without the spectre of last season – when three Premiership clubs went out of business in the space of 10 months – such an investment would come as a major boost to the English rugby landscape. But, in the context of last year, such large financial backing, albeit with ethical considerations, would represent one of the most remarkable moments since the Premiership introduced professionalism in 1995. It would involve four established clubs sacrificing a further chunk of their revenues following the CVC Capital Partners Investment in 2019.
‘Investors see room for growth in the clubs’ Telegraph Sport understands that Gloucester were initially the sole representatives in negotiations but that the investment group did not view the West Country club alone as an attractive enough proposition. Newcastle, alongside Leicester and Northampton – two of the league’s best supported clubs – were subsequently brought to the negotiating table to add greater value.
Discussions continue to progress, even if the pace has slowed in recent weeks. It is understood that one of the four clubs has established a direct dialogue with the Saudi group and is exploring the possibility of individual investment should a joint venture fall through.
Rugby Football Union’s regulations regarding club ownership state that any change of 10 per cent or less does not require consent from the governing body. Alongside Premiership Rugby Limited, the organisation could block a group from owning more than 10 per cent of more than one club in the league, too, while under European Professional Club Rugby regulations, no two clubs can be owned by a solitary body with more than a 20 per cent stake.
A source with knowledge of the talks said: “Conversations between potential future investors in the sport regularly take place. Investors see the headroom for growth in the clubs.” A Gloucester source added that the club did not comment on commercial or investment matters while Newcastle, Northampton and Leicester declined to comment.
In 2021, PIF acquired an 80 per cent stake in Newcastle United in a deal worth around £300 million with former owner Mike Ashley. Two other members of the consortium, the Reuben Brothers and Amanda Staveley, both took a 10 per cent share. The takeover process lasted for 18 months and faced interventions from the governments of both the United Kingdom and Saudi Arabia.
Amnesty International were among the bodies to oppose the attempt, saying that it was part of Saudi Arabia’s efforts to sportswash their human-rights record. Two years after the takeover of Newcastle United, the Premier League changed its ownership rules to disqualify potential owners and directors who had committed human-rights abuses.
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