LONDON • The takeover of Newcastle appears to be still on track despite fears that the bid could be derailed after The Guardian reported that Saudi Arabia was behind the illegal streaming of sports, including the English Premier League, in the Gulf kingdom.
The story on Tuesday said that the English top flight was made aware of the document, which was drawn up by the World Trade Organisation (WTO) as it is overseeing the copyright case.
While the WTO report will not be published until the middle of next month, it is understood that the body confirmed a direct correlation between the Saudi government and pirate service beoutQ, which illegally streams sports matches, including Premier League games.
As the Premier League has previously sought legal action against the Saudis, along with Spain's La Liga, Uefa and Fifa, The Guardian said the league had been put in a tough spot over the approval of the £300 million (S$521 million) deal, which is backed by the Saudi state wealth fund, Public Investment Fund (PIF).
The proposed buyout will give PIF an 80 per cent stake in Newcastle, with PCP Capital Partners - whose owner Amanda Staveley is brokering the entire deal - and billionaire property developers David and Simon Reuben taking 10 per cent each.
The Saudis and PIF have long denied there is a direct link between beoutQ and the state, contrary to WTO's report. And as Crown Prince Mohammed Salman is chairman of the PIF and heir apparent to the throne, that could contravene the Premier League's owners' and directors' test.
False, misleading or inaccurate information cannot be submitted as part of the takeover process.
However, Newcastle daily The Chronicle yesterday reported that no red flags have been raised regarding the proposal to replace Mike Ashley as the Magpies' owner.
British tabloid The Daily Mail also said sources with knowledge of the proposed takeover are adamant that the Saudis and PIF have "no ability to influence or fix broadcast piracy in the country and expect the Premier League to recognise this".
While nearly two months have passed since the consortium contacted the top flight to give the green light for the deal - the process was initially expected to take a month - the parties involved are believed to be confident it will eventually go through.
The Mail added that any Premier League decision was likely to be delayed until next week at the earliest, with the issues surrounding Project Restart more pressing.
Newcastle have so far maintained a "no comment" policy, with the Chronicle saying that Ashley, who took control in 2007, was happy to let the Premier League dictate the course of the bid.
