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How Newcastle United takeover could impact Premier League

Rohan Agarwal

October 27 2021
Newcastle United

A Saudi Arabia-backed consortium took over the Tyneside club for £300m.

Newcastle United are officially the richest club in the world, with the Saudi Arabian Public Investment Fund (PIF) worth well over £300 billion. One of England’s sleeping giants has been well and truly revitalized. Looking at the details of this deal, it will not be long before the Magpies challenge for the title once again.

Newcastle United’s new valuation makes them the wealthiest club in the world. Their estimated value is 10 times the current valuation of Manchester City and 17 times that of Chelsea. It is difficult to truly express how affluent the club and its new owners are.

Khel Now takes a look at how the Newcastle United takeover impacts the Premier League.

The reputation of Premier League

In the last few days, there has been a lot of uproar in relation to the takeover of Newcastle United. The Saudi Arabian state has been under a lot of scrutiny of late. The fact that the PIF belongs to Saudi Arabia is a matter of concern. The connection between the country and the investors is worrying. The lack of disparity between both parties could cause the Premier League trouble. Engaging with owners with power such as that of the Saudi Arabia’s PIF, potentially leaves the league exposed to immense state influence.

Moreover, there has been a lot of unrest due to the fact that the Premier League has agreed to a lucrative deal with the problematic state of Saudi Arabia. Human rights organizations, LGBTQ+ groups and others have all raised concerns about the ethics of the deal. With the Newcastle United takeover, the Premier League has risked their reputation and image being tarnished.

While these concerns are absolutely valid, the impact on the game must not be ignored.

An addition to “Big Six” and increased competition

Steve Bruce may be the first casualty of the Newcastle United takeover (Courtesy: Sky Sports)

The existing Premier League clubs are concerned about the takeover due to the potential threat posed by Newcastle United. With the new investment, the sleeping giants of the Premier League can get a new lease of life. Success may not come instantly. But, with an able manager at the helm and 3-4 decent transfer windows, Newcastle could become dangerous once again.

The ‘traditional top six’ has already been dispersed as a pack. This is thanks to the efforts of Leicester Ciity, West Ham amongst others. Clubs like Arsenal, Tottenham Hotspur and Liverpool, who do not invest as readily as the other top six clubs could face difficulty keeping up. Champions League spots will be extremely hard to come by and the race for the league title would be even harder.

Newcastle United would soon also be a lucrative spot for the world’s brightest and most expensive talents. They would be yet another club that can flex their financial muscle and make high-profile signings to challenge for silverware. Financial power and success have been observed to be almost directly correlated. Thus, it will not be a surprise to see Newcastle United slowly make it to the top of the pack.

However, this rise to the top is a process; a journey. Presently, Newcastle are winless and placed 19th in the Premier League after seven matches. At the moment, the Magpies have to recruit smartly in the January transfer window, employ an accomplished manager and stay in the division. As for the other teams stuck in the relegation battle, they all have to up the ante, as there may be one less candidate to take the fall from now on.

There are numerous concerns about the Newcastle takeover. However, such lucrative investment has its positives too.

Positive impact

One of the best aspects of such investments is that they always bring an injection of liquid into the market. The football transfer market has seen the COVID-19 pandemic cripple it. The Newcastle PIF investment would inject cash into the market. This would allow clubs to renew contracts they couldn’t before, sign more big players and rely less on free transfers. This investment could truly help revitalize the market.

As for the club itself, the infrastructure of the Newcastle United training center will definitely receive a new and much-needed upgrade. While investment in the transfer market and staying in the Premier League is of utmost priority, the club’s infrastructure and resources play a huge role in attaining success in the long run.

Revamping their run-down training centre will also attract promising young talents and help them develop better in the academy. More and more young stars are breaking into the Premier League each season and with better resources, this would be easier for Newcastle to do so as well.

There are a lot of concerns with regards to the Newcastle United takeover, but there are some things to look up to as well. It will be interesting to see how the Premier League is able to safeguard itself and all its clubs and also put a leash on the state influence upon the league. As for Newcastle United, it will be fascinating to see how they develop now – which departments they address first, with how much capital and in what manner.

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