Breaking News: Newcastle United PIF owners snubbed as major £23.6m per season deal abandoned

Newcastle United’s principal owners experienced a setback in a significant sports agreement, as a substantial £23.6 million deal with one of the world’s most renowned teams fell through.

As per reports from the United States, the Public Investment Fund of Saudi Arabia was poised to become the new sponsor for the New York Knicks’ kit, with a valuation of $30 million per season (equivalent to £23.6 million). The approval process for PIF’s entertainment event, Riyadh Season, was in its final stages for the kit sponsorship. However, the Mayor of New York City intervened, objecting to the partnership, leading to the cancellation of the deal.

In an alternative arrangement, Riyadh Season secured a front-of-shirt sponsorship for AS Roma, with a reported value of $8 million per season. Additionally, PIF-backed airline company Riyadh Air now features on the front of Atletico Madrid’s kit.

In the previous year, PIF actively pursued various major partnership deals, and indications suggest that their momentum remains strong. Initial reports suggested that Newcastle United’s owners were exploring the acquisition of Serie A side Inter Milan as part of their multi-club strategy. However, recent discussions have shifted toward a potential sponsorship deal, with ongoing negotiations.

While the pursuit of sponsorships is evident, it is clear that the central focus of Newcastle United’s leadership is transitioning into the acquisition of additional football clubs. Co-owner Amanda Staveley, who holds a 10% ownership stake in the club, emphasized the consideration of purchasing another club to enhance their brand and overall growth. Staveley highlighted the importance of strategic choices, emphasizing the complexity of multi-club models, particularly in light of changes in Governing Body Endorsement (GBE) points. She also mentioned exploring alternative structures that would provide more opportunities to collaborate with multiple clubs, acknowledging that such endeavors are still in the early stages of consideration. Staveley underscored the intricate nature of working with different fanbases and regions, emphasizing the need to define clear goals in any such endeavors.