The story began on October 8, 2021 in front of St James’ Park, the church in the center of the village. Newcastle supporters gathered in their hundreds (thousands?) then celebrated the announced return of the local club to the highest level, in a half-happy, half-disturbing atmosphere. Marked by the boredom of a life that no longer had much to offer them since the Alan Shearer years, this people of workers from the North East of England trampled on their principles without the slightest regret in exchange for the return of good times. . On this day of the announcement of the takeover by the Saudi sovereign fund (the PIF), fans of the Toon Army pose with the flag of Saudi Arabia and sing in praise of Crown Prince Mohammed Ben Salman. Blood on your hands? Ugh, no big deal. After all, a journalist tortured and then cut up and a few civilians bombed in Yemen (non-exhaustive list) have never stopped anyone from sleeping, and certainly not a happy supporter.
On a moral level, Newcastle resembles PSG, their opponent on Wednesday in the Champions League. But the comparison stops there. The Magpies, who we imagined would come to annoy Manchester City and Paris in their niche by starting to recruit with hundreds of millions of euros, or at least do anything like vulgar Everton or West Ham, have chosen a different path. Less ostentatious, almost modest. A paradox, when we observe the revolution of the Saudi league from afar.
“As for football in terms of soft power, image, tourism, etc., we have to look at home,” explains economist Luc Arrondel, research director at the CNRS and specialized in football. Clubs spent the most on transfers in Saudi Arabia. Their balance is negative by a billion euros [891 millions d’euros], just behind the Premier League, which is at 1.2 billion euros. »
The PIF had a hollow nose
When it comes to intelligent football, however, we must turn to England, where the Saudi project is driven by a solid sporting structure. From general manager Darren Eales to Eddie Howe, the coach, to director of football Dan Ashworth, everyone knows English football like the back of their hand. “They still spent a lot of money, but they made very few mistakes,” applauds Kieran Maguire, an English economist specializing in sport. They recruited the right people in the right positions. » Last summer Newcastle spent 153 million euros, including 108 on Sandro Tonali (AC Milan) and Harvey Barnes (Leicester). A nice sum but nothing excessive, in line with the club’s sporting policy since passing under the Saudi flag: expenses are controlled, but do not prohibit big moves when they are necessary. And never by overpaying above the market price (with one exception). Examples:
> Bruno Guimarães recruited in January 2022 for 42 million euros from OL while Newcastle, barely bought by the PIF, was heading straight towards relegation.
Summary: Total success, idol of St James’ Park
> Alexander Isakbought in the summer of 2022 for 70 plates from Real Sociedad (while it was worth 30 according to Transfermarkt) to help the Toon reach the milestone offensively.
Results: Success, indisputable holder
> Anthony Gordonthe young English star on the rise, snatched from Everton for 45 million euros at the end of the last winter transfer window to strengthen the environment with the aim of reaching the top 4 in the PL.
Overall: Pretty good. Slow to start, much better since the start of the season.
“This summer’s transfer window wasn’t bad but it deserved better,” analyzes Antoine, a French supporter of Newcastle. The opinions circulating among supporters are that we should have taken a world-class winger. There were the crazy rumors, Federico Chiesa, Khvicha Kvaratskhelia but ultimately it was Barnes. Talented certainly, but without unanimous approval. But for the moment our supporters are not yet hyperdemanding. We don’t necessarily expect stars. It’s not because today the club is “Saudi” that we have to win the LDC tomorrow, we have to take the time to evolve. Let’s not skip ahead, that’s how a project fails. »
An observation shared by Laurent Robert, former legend of the club and incidentally ex-Parisian. “There were well thought-out recruitments, they didn’t want to get excited like the big teams by bringing in big names. Newcastle did the complete opposite of what spectators and observers might have feared with the arrival of a big investor. »
Doubts surrounding new Saudi jersey sponsor
The truth behind this skillful sports management is that it is a bit forced. You no longer enter European football by playing around with your unlimited wallet like Roman Abramovitch. “New rule”, as the other would say: the emergence of Chelsea, Manchester City and Paris Saint-Germain has generated financial fair play (FPF), and, as debatable as it is, the latter represents a constraint taken at seriously by newcomers. Kieran Maguire elaborates:
When Chelsea played Manchester City in the Champions League final [2021], it was a match between the two biggest loss generators in Premier League history. Rules have therefore been introduced to ensure that this no longer happens. In reality, Newcastle’s owners would like to spend the amount of money they have, but they are limited by these rules. »
To spend more in the future while remaining sustainable and in line with the FPF, the management of the Magpies is doubling its imagination in order to boost its income: friendly matches with Saudi Arabia at St James’ Park to boost ticket sales and connect the English city to its new country, but also an increase in commercial revenues through the signing of sponsorship contracts. Adidas marks its return as the club’s equipment supplier, and one of the episodes of the Prime Video series We Are Newcastle is focused on the quest for a new jersey sponsor. Because the latest partnership with Fun88, a Chinese online betting company, did not weigh very much: 6.5 million pounds per year to appear on the black and white tunic. Worse, the Premier League decided to ban brands linked to betting by 2026 and Fun88 therefore no longer had a future in England.
To replace it, Newcastle has set its sights on Sela, the main Saudi events company also owned by the PIF. A suspicious move which recalls the old maneuvers of City and PSG to boost their commercial income. “The case of clubs owned by sovereign funds is delicate, Luc Arrondel. Knowing the origin of commercial income is not always easy. When Qatar Airways funds a jersey sponsor for PSG, is it Qatar? Does this fit into the case of the FPF? It is complicated. It’s the same for Newcastle. » The amount of the agreement with Sela is also striking: 25 million per year, that’s almost five times more than the previous one. Fear of interference from the Saudi state has put the Premier League’s independent commissions on alert.
According to The Guardian, these should be lenient, because the argument of qualification in C1 as an explanation for the exponential increase in sponsorship income is considered acceptable. “All contracts linked to sponsorship and all deals over a million pounds are scrutinized to determine whether they are in compliance with market laws,” adds Kieran Maguire. And Newcastle is controlled very, very closely. » The price to pay to enter a new dimension.