Saudi Arabia eye Premiership rugby as four clubs targeted with ‘stadiums to be renamed’ | Rugby | Sport
The Saudi Arabian Public Investment Fund is reportedly in discussions with four top-flight rugby clubs over pouring money into the sport. It is claimed that Premiership sides Gloucester, Leicester Tigers, Newcastle Falcons and Northampton Saints have all been involved in talks that could see the Saudi sovereign wealth fund take control of stadium naming rights and set up a rugby academy in the Middle East.
It is claimed that Gloucester were initially seen as a solitary target for PIF, who own an 80 per-cent majority stake in Premier League club Newcastle United. However, the club alone were not seen as attractive enough of a proposition.
To add greater value to a potential deal, Leicester, Newcastle and Northampton were reportedly brought to the negotiating table. Leicester and Northampton are among the best-supported clubs in the sport.
According to the Telegraph, PIF’s investment could be worth around £60m to the clubs involved, with potential deals valued at seven-figures each. It would be a major agreement for a sport that lost three of its top-flight clubs to bankruptcy in a 10-month period last year.
A figure with knowledge of the talks reportedly told the newspaper: “Conversations between potential future investors in the sport regularly take place. Investors see the headroom for growth in the clubs.”
Discussions are reported to have ‘slowed’ in recent weeks. One of the four clubs is claimed to have established a direct line of contact with the investment group to explore the possibility of individual investment should the joint attempt fail.
The Rugby Football Union’s rules regarding club ownership state that any change of 10 per-cent or less does not require a green-light from the governing body. That differs from football where the owners’ and directors’ test is in place for all shareholders.
Discussions have reportedly involved the Saudi investment fund gaining control over stadium naming rights. A rugby academy could also be set up in Saudi Arabia, boosting the sport’s popularity in the Gulf nation.
Saudi Arabia has invested enormously into sport in recent years. Last July, the Guardian reported that PIF had invested £4.9billion into sport since early 2021. The fund purchased an 80 per-cent stake in Premier League club Newcastle in October 2021.
It also invested around £1.5 billion to create LIV golf, the controversial golf tour that this week lured Tyrell Hatton from the PGA tour. Human rights groups have accused PIF’s huge investment in sport as an attempt to distract from Saudi Arabia’s human rights record.
