“As often occurs with proposed investments in uncertain periods, time itself became an enemy of the transaction, particularly during this difficult phase”
By Sky Sports News
Last Updated: 30/07/20 4:18pm
Saudi Arabia’s Public Investment Fund, PCP Capital Partners and Reuben Brothers has withdrawn from the process to buy Newcastle, Sky Sports News can exclusively reveal.
Papers regarding the proposed were lodged with the Premier League in April but no further details have been forthcoming since then.
The Investment Group have decided to end their interest, citing the worldwide uncertainty caused by the coronavirus pandemic.
A statement read: “With a deep appreciation for the Newcastle community and the significance of its football club, we have come to the decision to withdraw our interest in acquiring Newcastle United Football Club.
Plans for a takeover of Premier League side Newcastle United have been abandoned
“We do so with regret, as we were excited and fully committed to invest in the great city of Newcastle and believe we could have returned the club to the position of its history, tradition and fans’ merit.
“Unfortunately, the prolonged process under the current circumstances coupled with global uncertainty has rendered the potential investment no longer commercially viable.
“To that end, we feel a responsibility to the fans to explain the lack of alternatives from an investment perspective.
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“As an autonomous and purely commercial investor, our focus was on building long-term value for the club, its fans and the community as we remained committed to collaboration, practicality and proactivity through a difficult period of global uncertainty and significant challenges for the fans and the club.
“Ultimately, during the unforeseeably prolonged process, the commercial agreement between the Investment Group and the club’s owners expired and our investment thesis could not be sustained, particularly with no clarity as to the circumstances under which the next season will start and the new norms that will arise for matches, training and other activities.”
Newcastle manager Steve Bruce is preparing his team for the next Premier League season
The decision will be a blow to Newcastle fans, who hoped the planned takeover might lead to significant investment in the club – who finished 13th in the recently concluded Premier League season.
But, 24 years to the day that Newcastle famously signed all-time great Alan Shearer, the news for the club’s supporters was not so positive this time.
The statement from the Investment Group added: “As often occurs with proposed investments in uncertain periods, time itself became an enemy of the transaction, particularly during this difficult phase marked by the many real challenges facing us all from Covid-19.
Newcastle legend Alan Shearer signed for the club on July 30 1996
“We feel great compassion for the Newcastle United fans, with whom we shared a great commitment to help Newcastle United harness its tremendous potential and build upon its impressive and historic legacy while working closely with the local community.
“We would like to say that we truly appreciated your incredible expressions of support and your patience throughout this process. We are sorry it is not to be.
“We wish the team and everyone associated with it much good luck and success.”
‘It’s devastating… I worry for the club’
Former Newcastle defender Steve Howey, speaking on Sky Sports News:
“It’s devastating. The fans, everyone concerned with Newcastle – the whole city – was hoping for this to go through.
“Mike Ashley’s tenure hasn’t been a happy one. Newcastle fans have been through this before but I think people got behind this one and thought it would happen. Doubt does come into your mind when it lingers on but I was still optimistic that it would go through.
“My heart sunk. It’s devastating for the fans, who had the cans ready to celebrate. This will cut very deep. Everyone had such great hopes about where the club might go and who they might buy.
“There’s six weeks until the season starts; how much will Mike Ashley invest? A lot of fans will think not a lot, if anything.
“Under the current regime, Newcastle have unfortunately found themselves in a position where the aim is to survive. I think Steve Bruce has done an amazing job, considering. But I worry for the club now.
