Always a Wasp

"Saudi Arabian investors are in discussions to invest millions into four of England?s top-flight rugby clubs.

Telegraph Sport can reveal that associates of the Saudi sovereign Public Investment Fund (PIF), which took an 80 per cent stake of the Premier League?s Newcastle United in 2021, have held discussions with Gloucester, Leicester Tigers, Northampton Saints and Newcastle Falcons about proposed seven-figure investments.

It is understood that the group are seeking control of stadium naming rights and the establishment of a rugby academy in Saudi Arabia as part of any potential stake in the four clubs, an investment which could be worth as much as a combined ?60 million to the clubs involved.

Senior Premiership executives are thought to be aware of the discussions but the organisation told Telegraph Sport that the league could not comment on individual club matters.

Even without the spectre of last season ? when three Premiership clubs went out of business in the space of 10 months ? such an investment would come as a major boost to the English rugby landscape. But, in the context of last year, such large financial backing, albeit with ethical considerations, would represent one of the most remarkable moments since the Premiership introduced professionalism in 1995. It would involve four established clubs sacrificing a further chunk of their revenues following the CVC Capital Partners Investment in 2019.

?Investors see room for growth in the clubs?
Telegraph Sport understands that Gloucester were initially the sole representatives in negotiations but that the investment group did not view the West Country club alone as an attractive enough proposition. Newcastle, alongside Leicester and Northampton ? two of the league?s best supported clubs ? were subsequently brought to the negotiating table to add greater value.

Discussions continue to progress, even if the pace has slowed in recent weeks. It is understood that one of the four clubs has established a direct dialogue with the Saudi group and is exploring the possibility of individual investment should a joint venture fall through.

Rugby Football Union?s regulations regarding club ownership state that any change of 10 per cent or less does not require consent from the governing body. Alongside Premiership Rugby Limited, the organisation could block a group from owning more than 10 per cent of more than one club in the league, too, while under European Professional Club Rugby regulations, no two clubs can be owned by a solitary body with more than a 20 per cent stake.

A source with knowledge of the talks said: ?Conversations between potential future investors in the sport regularly take place. Investors see the headroom for growth in the clubs.? A Gloucester source added that the club did not comment on commercial or investment matters while Newcastle, Northampton and Leicester declined to comment.

In 2021, PIF acquired an 80 per cent stake in Newcastle United in a deal worth around ?300 million with former owner Mike Ashley. Two other members of the consortium, the Reuben Brothers and Amanda Staveley, both took a 10 per cent share. The takeover process lasted for 18 months and faced interventions from the governments of both the United Kingdom and Saudi Arabia.

Amnesty International were among the bodies to oppose the attempt, saying that it was part of Saudi Arabia?s efforts to sportswash their human-rights record. Two years after the takeover of Newcastle United, the Premier League changed its ownership rules to disqualify potential owners and directors who had committed human-rights abuses.

Q&A: Rugby?s potential Saudi future
What does this mean for the Premiership?
The fact such a group are interested in investing large sums of cash into the league the season after three clubs went bust should be seen, financially, as a positive ? especially with the salary cap set to rise from ?5 million to ?6.4 million and clubs desperate for an injection of funds.

Even if this venture was worth ?15 million to each club, that could be transformative to a team like Newcastle Falcons which slashed its budget this season in an attempt to become more financially sustainable.

There are, however, significant ethical concerns over the arrival of the Saudis, particularly because of the country?s human rights record.

Why are Saudi Arabia interested?
This would be a first foray into the world of rugby union, following other big-hitters like CVC and Silverlake in the private equity world. An investment in rugby would be a drop in the ocean compared to the ?300 million that PIF ploughed into Newcastle United and more than a billion spent on LIV Golf.

There is, of course, the sportswashing element, with Saudi Arabia looking to distract from its human rights record. If a deal were successful, the Premiership may even follow boxing, tennis and golf in staging some matches in the kingdom.

What?s at stake?
If the investment was across all four clubs, the group could not claim a stake of more than 10 per cent in each. If just one club received Saudi investment, only changes of ownership of 11 per cent or more would require consent from the governing body. If a club valued itself at ?50 million, therefore, it could expect to receive ?5 million for a 10 per cent stake. There is a chance, too, that Saudi state-backed businesses could come in with further capital as part of sponsorship agreements.

Can the Saudis invest in more than one club?
Yes, but they are prohibited from acquiring more than a 10 per cent stake in each according to RFU and Premiership regulations. At European level, that is 20 per cent, which is why the proposed takeover of Gloucester by Mohed Altrad, the Montpellier owner, was blocked.

Can the RFU do anything about it?
Only if the potential deals are above a 10 per cent ownership of any club. If they are less, the governing body would be powerless ? in terms of regulations ? to stop any deal. Even if the investment were more than 10 per cent of just one club, the RFU could step in but it is not clear at this stage whether they would permit or block the deal."

Yes, Joe has looked less than dynamic recently after a v good start with Quins, but he must be doing something right to be made Captain.

Tyrone Green for England? Power and balance as well as speed, and his passing is very sweet.

For those who think Alfie is becoming a one dimensional player, I suggest you look at his try from the weekend. Shortly beforehand, he ran into Kolisi and was stopped. On this occasional he skipped laterally and beat three defenders, including Kolisi, then launched himself at the line and stretched out to score.

I doubt if any other back row in England would have scored that.

Sad to hear this.
He was my Senior Registrar when I was a Senior House Officer at the RNOH Stanmore. I bumped into him at an England v Wales game at Twickenham a few years back and he came and sat with the RNOH Stanmore table in one of the hospitality venues.

The Times has been eulogising a former colleague of mine who died recently.

They didn't mention that he was sacked from his day job as a Professor at Oxford [banned from operating with a failed retraining program] and then joined the Army, getting a CBE for his work in Helmand.

He joined the General Medical Council without telling them that his GP sister [different surname] was under investigation for the premature deaths of 645 Nursing Home inhabitants. He clearly could have passed information to her lawyer during the 6+ years he was on the council.

He was disappointed not to be knighted - that is how little insight he had.

But he was an Oxford man, and had been at primary school with the King.

Coddy, you missed an amazing season of racing. It could be even better next year with Mark Marquez on a Ducati.

Exeter crush Sale, with tries for 3 Wasps players - Fisilau, Frost and Feyi-Waboso