An expert in Afro-Eurasian sport has warned that the Saudi Arabian Public Investment Fund (PIF) could withdraw from the Newcastle United project if it proves 'too disruptive' and not profitable, following the failure of LIV Golf.
Speaking on The Sports Agents podcast, Professor Simon Chadwick of the University of Leeds believes Saudi Arabian sport is undergoing a change in strategy that focuses on 'three pillars'. As such, Chadwick does not believe Newcastle United – who are majority owned by the PIF – fits into the direction they want to take sport in the Middle East.
Three pillars of Saudi sport strategy
"For Saudi Arabia right now, I think there are probably three pillars to what they're doing. Number one is the World Cup, and even the World Cup is in some danger right now in the sense that these very ambitious stadium projects are now being scaled back," Chadwick said.
"So, Saudi's going all in on the World Cup, all in on eSports, and the other thing is all in on mass participation. So, things like gyms and marathons and triathlons and, you know, street football leagues and skateboarding, you name it."
PIF investment strategy shift
Chadwick noted that the SURJ and PIF strategy now seems to be investing in assets that are immature but nevertheless have a global footprint. "So, if we take esports for example, eSports is still growing. It's not forecast to reach any kind of peak until about 2050."
He added: "And Newcastle United fans don't like me, because I posted this before and they've told me – I fail to see what coherence and investment in Newcastle United has with wider Saudi Arabian sporting strategy."
PIF remain committed
Without suggesting that the PIF have any plans of scrapping the Newcastle United project, Chadwick warned that, with the failure of LIV Golf as a recent example, if Saudi Arabia does not believe it is making money out of a project, it will withdraw funding. "What is clear and what we've all got to learn from what has happened over the last year, two years, is if the Saudi Arabians think, well, you know, we're not making any money out of this, it's too disruptive, it's impacting upon perceptions of us, they will withdraw."
However, Chronicle Live understands PIF remain committed to the Newcastle United project. Club director Jacobo Solis, Head of International Direct Investments at PIF, was a regular presence at the training ground and matches over the last few weeks, as well as being in La Manga during the club's pre-season training camp.
Questions were raised when it was revealed PIF funding of the LIV golf tour was to be withdrawn at the end of this year, but their commitment was reaffirmed back in May when PIF governor and Newcastle United chairman Yasir Al-Rumayyan jetted into Newcastle for the club's annual summit at Matfen Hall. There has been a reassurance that PIF still see Newcastle as one of their most successful investments and there is no desire to sell the club, even if results have waned in the last year compared to the four years that preceded it.
