Newcastle United owners the Saudi Public Investment Fund will be frustrated by one particular thing that has happened behind the scenes at Euro 2024.
PIF bought Newcastle in October 2021 as part of the sovereign wealth fund’s plan to diversify away from fossil fuels, with football and sport in general a key target era.
The Saudis are not the only Gulf state to have pivoted to the football market in recent years. Far from it.
And Qatar, the Saudis’ biggest rivals in the Middle East in terms of football investment, will have frustrated PIF with their latest major deal.
Qatar-UEFA deal clashes with PIF’s Newcastle vision
Qatar Airways, the state-backed airline for the nation, has announced that is has renewed its deal to be the principle sponsor for UEFA’s men’s national team competitions.
The news comes with Qatar Airways branding featuring heavily at Euro 2024 in Germany.
Significantly, the deal, which is believed to be worth in excess of the previous £16m the company paid to sponsor the 2021 Euros, will now run until 2030.
That means Qatar Airways will still be the main sponsor when Newcastle host games at the 2028 Euros.
PIF will not like being obliged to display a direct rival’s branding at St James’ Park. In fact, there is some precedent to suggest that they could reject it entirely.
Man City, who are sponsored by Etihad, refuse to wear Emirates-branded FA Cup badges when competing in the competition.
Similarly, Rangers recently won a long-running dispute with the SPFL about their objections to displaying league sponsor Cinch’s branding at Ibrox due to their association with rival company Parks’ Motors.
The Saudi-Qatar rivalry runs deep, so it would not be a surprise to see Newcastle follow suit.
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PIF’s long-term plan at Newcastle as Gulf interest in Premier League intensifies
Newcastle became the second club in the Premier League to be owned by a sovereign wealth fund, following Man City’s takeover by Abu Dhabi United Group in 2008.
Newcastle have been anchored by Profit and Sustainability Rules since PIF’s takeover, although there are some noises that suggest that tide could be turning at Premier League governance level.
Gulf states are continuing to show interest in the Premier League, andthere are investment opportunities at the likes of Tottenham and West Ham at present.
But until there are reforms to the Premier League’s PSR rules, neither Newcastle nor any other Gulf-funded club can hope to truly smash the glass ceiling any time soon.