Owners of Liverpool’s Premier League rivals announce major deal amid Karim Benzema rumours

The owners of one of Liverpool’s closest Premier League rivals last season, Newcastle, have announced they have taken a majority stake in four Saudi Pro League clubs. The Public Investment Fund of Saudi Arabia (PIF) is expanding its portfolio by privatising these teams with a 75 per cent share.

Newcastle, who are 80 per cent owned by PIF, pipped the Reds to the final Champions League qualifying spot at the end of the season and now they’re set for quite the transfer window.

Al Ittihad, Al Ahli, Al Hilal and Cristiano Ronaldo’s Al Nassr are the clubs in question, who were technically owned by the country’s Ministry of Sport before this takeover. This privatisation is reportedly part of a government initiative designed to help further grow the sport. The remaining 25 per cent stake will be owned by non-profit organisations.

“As part of today’s announcement of the Sports Clubs Investment and Privatisation Project, four Saudi clubs — Al Ittihad, Al Ahli, Al Nassr, and Al Hilal — have been transformed into companies, each of which is owned by PIF and non-profit foundations for each club,” the Newcastle owners wrote in a recent statement.

“Existing members of each club will be included in the four foundations. PIF is working closely with [the Saudi Ministry of Sport] on all the necessary regulatory procedures to complete the clubs’ transfers to their new structures as newly founded companies alongside non-profit foundations.”

PIF also claimed the privatisation and takeover of these clubs would “unleash various commercial opportunities, including investment, partnership and sponsorships across numerous sports.”

Karim Benzema has agreed to join Saudi Arabian champions Al-Ittihad after leaving Real Madrid while Lionel Messi and N’Golo Kante have both been linked with moves to clubs in Saudi Arabia with Ronaldo already making the switch after leaving Manchester United.

This decision does not directly impact Newcastle as it doesn’t mean they are involved in a multi-club ownership. Each club under the ownership of PIF will be run by individual boards. But while the new takeovers are separate to the Magpies, it further compares their current financial situation to others like Liverpool.

The ongoing debate over whether Fenway Sports Group are right for the Reds continues, particularly after their disappointing fifth-place finish last season. Back in November it emerged that FSG were exploring options to sell the club, seemingly acknowledging their current business model could not keep up with the likes of Manchester City, Chelsea and now Newcastle.

John Henry has since come out and said he has no plans to sell Liverpool Football Club.