Saudi Arabian fund Public Investment Fund (PIF) opted to complete a takeover of Newcastle United after expressing doubts about the structure of Serie A, despite being linked with Inter.
The Magpies were bought out in October after a consortium led by PIF reached an agreement with former owner Mike Ashley and the Premier League, allowing them to become majority shareholders at St. James’ Park.
As reported in today’s newspaper edition of Corriere dello Sport, Arab investment has been focused on the Premier League rather than Serie A due to the financial potential in English football, and it’s limits in Italy.
The English top flight rakes in huge matchday revenue, averaging €38 million compared to just €14m in Serie A, whilst the Premier League also dwarves Italy in sponsorship revenue.
Meanwhile, the United Kingdom has long-established links with many Gulf states and businesses and London has become a hub, whilst other countries in the continent do not enjoy such close contact and there is a sense of stronger barriers to the Middle East in Italy.
This has led to more US-based companies and owners targeting Serie A, with much lower entry costs and limited scope for losses. Indeed, the takeover of a lower end club in the Italian top flight could cost tens of millions of euro, whilst PIF were forced to spend €400m to buy the Premier League’s bottom club.
