Documents released by the Department for International Trade in response to a freedom of information request by openDemocracy reveal that a minister promised the Premier League that he would secure a response to a proposed “way forward” from “the highest levels of the Saudi government” in light of the government’s extensive efforts to facilitate the Saudi Arabian takeover of Newcastle United.
Lord Gerry Grimstone, the then-minister for investment, requested Gary Hoffman, the then-chairman of the Premier League, to submit the league’s legal opinion on “a way forward” for the blocked takeover by the Saudi Arabian Public Investment Fund (PIF) in August 2020, according to the documents.
Grimstone, a former banker with high-level contacts in Saudi Arabia and the Gulf who was appointed by Johnson in March 2020 to attract investment to the United Kingdom, said to Hoffman, “I can then confirm from the highest levels of the Saudi Government whether this is deliverable, and we will all know where this stands.”
According to the records, Grimstone worked diligently to secure the takeover by coordinating between the Premier League and the Saudi government over a potential “solution.”
The proof of Grimstone’s efforts, including in internal documents copied to Downing Street officials and the British ambassador to Saudi Arabia, Neil Crompton, contradicts the UK government’s repeated assertions that it had no role in the takeover process.
In an April 2021 parliamentary response to Newcastle Central MP Chi Onwurah, Johnson declared, “The government was never involved in the sale negotiations for Newcastle.”
In May of this year, a DIT spokesperson played down the minister’s involvement, stating that he “never attempted to influence Mr. Hoffman and the Premier League to approve the Newcastle takeover.” The representative stated that Grimstone’s sole responsibility was to “keep aware of major investments potentially entering the United Kingdom.”
The documents disclosed by the DIT comprise four memos made by Grimstone to Crompton and two unnamed Downing Street officials in August 2020, telling them of his interaction with Hoffman, which included three phone calls and three WhatsApp messages.
Before releasing the documents, the DIT severely censored them, claiming the fact that exposing the details could harm the UK’s international relations or business interests. Nonetheless, it is evident from the passages that were not deleted that Grimstone was attempting to find a way for the transaction to be approved by the Premier League and that the halted process was viewed as potentially “embarrassing” for ties with Saudi Arabia.
In the 11 August 2020 memo, Grimstone informed Crompton that he had just concluded a 45-minute conversation with Hoffman. Grimstone added, “We established explicitly at the beginning of the call that my only function was to promote the exchange of ideas between the EPL and PIF, and that in no way compromised the EPL’s sovereignty in this matter.”
Hoffman informed the minister that the attorney for the Premier League had indicated that the Kingdom of Saudi Arabia (KSA) possessed the authority to control the PIF. This meant that the Saudi government had to pass the league’s “fit and suitable” standard for owners and directors. The following parts contain what appears to be Hoffman’s explanation for why this may have been an issue, but they are completely blacked.
The Saudis are believed to have disregarded the legal advice on state control of the PIF and refused to submit to the owners and directors test. It was also expected that the Saudi state would likely fail the test, so preventing the takeover. It was not the state’s infamous human rights abuses or the death of writer Jamal Khashoggi that made the takeover of Newcastle so controversial; rather, it was the Saudi government’s theft of Qatari-owned sports television rights.
Grimstone noted in his memo, “We then reviewed potential solutions to this dilemma.”
Grimstone reported a follow-up contact with Hoffman on 22 August. He said, “Gary stated that the EPL would like to find a solution and that he is very sensitive to the broader ties with KSA issues around this issue. We agreed that no process should be restarted until there is a clear path forward, as any new “failure” would be extremely embarrassing.
Grimstone said that Hoffman will contact the Premier League’s attorney “and ask him to advice on whether there is a path ahead and, if so, what commitments KSA would be required to make.” The parties would then have a clear understanding of the height of the obstacle and whether or not they are willing to jump it.”
Later the same day, Grimstone sent Hoffman a WhatsApp message stating, “I believe that for all of our sakes, we should attempt to resolve this situation as soon as possible. As noted, it would be beneficial for you and me to obtain your QC’s viewpoint on what he believes is necessary to accomplish this.
“I will then be able to certify from the highest levels of the Saudi government whether or not this is feasible, and we will all be aware of its status.”
Grimstone pledged to “engage in dialogue” with the attorney for the Premier League.
Included at the end of the document was the minister’s evaluation of the government’s intent: “Hopefully, we are trying to infuse some clarity into a very murky issue so that the parties can resolve.”
The merger did not go through in 2020 despite Grimstone’s attempts since the legal opinion never altered and KSA refused to comply with the owners and directors test. The Premier League confirmed in October 2021 that a mechanism had been found to approve the takeover after the PIF offered “legally enforceable assurances that the Kingdom of Saudi Arabia will not control Newcastle United.”
Then, Hoffman informed the twenty Premier League clubs that the government had exerted pressure on the league to approve the transaction. Richard Masters, the league’s chief executive, informed them otherwise and stated in a BBC interview, “There were discussions with the government, but no pressure was used.” According to a Premier League source, Masters continues to have this opinion.
Grimstone reacted to questioning that he “strongly” contested the conclusion that he had worked tirelessly to facilitate the takeover or that Johnson’s speech to parliament was false.
“As investment minister, it was part of my responsibility to remain aware of prospective significant foreign investments in the United Kingdom,” he stated. “This was especially crucial for projects such as Newcastle, which were in the public domain and garnering considerable public interest.
I made it quite plain to Mr. Hoffman that my sole responsibility was to encourage the exchange of ideas between the PIF and EPL, and that I had no intention of compromising the EPL’s sovereignty in this regard.
“I was naturally concerned, as I would be with any high-profile investment coming into the United Kingdom, that the parties resolve this amicably and professionally, regardless of the outcome of their conversations.”
Grimstone resigned as minister in July following Johnson’s resignation, stating that he had brought in “around £50 billion in investment.” This total included £10 billion in transactions with the sovereign wealth funds of Abu Dhabi and Qatar.
Johnson did not reply to queries over his remarks to the parliament, but a DIT official stated that the government stood by all previous statements.
Hoffman, who stated to the clubs that he was unaffected by government pressure, declined to comment.
