Football Law expert and barrister Thomas Horton has outlined that Newcastle United are hoping for two key outcomes from their legal challenge to the Premier League which could help their chances of completing the takeover.
The Premier League’s halting of the proposed £300m takeover of the club by the Saudi-Arabian based PIF consortium has led to two legal challenges. One of those has been well documented for a few weeks now with Newcastle Supporters Consortium Limited issuing a legal letter, while the club themselves are now engaged in an arbitration process with the Premier League.
It has been reported that PIF remain interested in completing the takeover if they get the chance to do so, and they are reportedly continuing to monitor the situation regarding the club’s legal challenge to the Premier League. The consortium are prepared to come back and resurrect the deal if there is a clear pathway for them to do so, per Chronicle Live.
Speaking to Chronicle Live, Horton outlined some of the intentions behind the arbitration from Newcastle, with one of the two key objectives being to get it declared that PIF is separate to the Kingdom of Saudi Arabia system of government. The other objective is to get the Premier League to reapply the Owners’ and Directors’ Test (ODT) to PIF. He said:
NUFC could be seeking the following remedies:
A finding of fact and/or a declaration that the Kingdom of Saudi Arabia Public Investment Fund (“PIF”) is a separate legal entity from the Kingdom of Saudi Arabia system of government; and/or
That the PL reapplies the ODT to PIF (presuming that the PIF are still on board for the takeover).
I think it’s exciting (of course I would!), from a football law perspective and for NUFC.
Read Newcastle verdict
This is obviously a complex case and there is going to be plenty for the courts to consider before determining any potential resolution to the Magpies’ proposed takeover. However, this news seems to be encouraging, with Newcastle potentially aiming to be in a position where they can almost restart the ODT process with PIF.
That would certainly reopen the door to a potential deal finally being resurrected and that PIF still remain keen on the takeover shows that it is still on the table for both parties. The matter of deciding whether PIF is separate from the Saudi Arabian system of government would also be beneficial in alleviating potential issues preventing the takeover.
This has been an agonising period for Newcastle fans, but it seems that, over the next few weeks, that things could start to look a little more positive if this arbitration process goes the way the club are hoping it will.
