In a tumultuous year for soccer, 2023 has a particularly twisted story line. From the ripples of the UEFA Premier League to Lionel Messi's Barcelona farewell to Crowe's return to his Manchester United stomping grounds, the shocking events have left fans across the globe waiting with bated breath. On October 7, the Premier League officially announced that Newcastle United had been acquired by a public investment fund led by a Saudi Arabian consortium, a news that set off an uproar in the soccer world, as such a takeover is not just a change at the club level, but one that could have far-reaching implications for the entire league, and indeed, the entire soccer world.
Looking back at history, there is no classic case of a consortium acquiring a ball club than the rise of Manchester City and Paris. These two teams, with the support of the consortium, have shown amazing strength and become the new aristocrats outside the traditional giants. This article will focus on analyzing the cases of Manchester City and Paris.
The Public Investment Fund, an imposing sounding consortium, has a net worth of €376 billion, far more than any other soccer consortium. Such massive financial strength makes one look forward to the future of Newcastle United.
One of the major advantages of a consortium buying a football club is its ability to provide a strong financial backing to the club, helping the team to make a big splash in the transfer market. Manchester City, for example, have spent €157 million in the transfer market since their first season of ownership (2008/2009), twice as much as in any previous season. Between 2010 and 2019, City have spent a staggering €1.63 billion in the transfer market, topping all clubs. With the financial backing of the consortium, City have been able to bring in more talented players and improve the strength of the team.
The financial backing of consortia also helps clubs to offer higher salaries and attract top players to join them. In the case of Paris, for example, they brought in a number of star players in the 21/22 season, including Lionel Messi, and the combined annual salaries of these five players amounted to €105 million, making Paris the team that spends the most on team salaries in the world.
All clubs took a hit in revenue during the epidemic, but Paris was able to invest boldly in the transfer market thanks to the backing of the Cada Sports Investment Fund. Of course, players joined Grand Paris for more reasons than just salary; they also looked at the team's luxurious squad and ambition to win the Champions League.
Staveley, the co-owner of Newcastle United, had said after the acquisition was completed that they were confident of making Newcastle United the Premier League champions. With a good development plan and strong financial backing, this goal is not out of reach.
However, the impact of consortium takeovers on other clubs has not been the same. This season, for example, Manchester City brought in players in the summer transfer window for transfer fees of up to €117 million, highlighting the financial gap between the giants and the smaller and medium-sized clubs.
