WTO Ruling on Saudi IP Theft Casts Shadow Over Newcastle United Takeover

Football is fundamentally about the love of the game and fair competition, but it is also deeply intertwined with significant financial interests. Newcastle United supporters have been anxiously awaiting the outcome of a proposed takeover by a British consortium backed by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF).

On June 16, 2020, the World Trade Organization (WTO) published a ruling following an 18-month investigation into Saudi Arabia’s involvement in television broadcasting piracy. The WTO concluded that Saudi Arabia had engaged in intellectual property theft on a mass scale, a finding that could jeopardize the Saudi-backed bid to acquire Newcastle United.

The complaint was brought by Qatar, representing the Doha-based beIN Sports network. For the past three years, beIN Sports’ television feeds have been illicitly hacked and rebroadcast by beoutQ, a pirate station based in Riyadh. BeoutQ has unlawfully broadcast Premier League matches, World Cup games, tennis events, and more—content for which beIN Sports had paid millions for exclusive regional rights.

The proliferation of beoutQ set-top boxes has extended beyond the Middle East into Europe and other regions, causing substantial financial losses to legitimate broadcasters. While the dispute is often viewed through the lens of the ongoing Saudi-Qatar political feud, the WTO complaint transcends regional politics.

The illegal broadcasts undermine the entire funding ecosystem of European football. Qatar’s case received backing from the English Premier League, the European Union, Canada, Japan, Singapore, Brazil, Australia, and major football organizations including FIFA, UEFA, LaLiga, and the Bundesliga.

A legal summary prepared by beIN Media Group emphasized that the case is strictly about intellectual property theft, stating, “beoutQ’s victims include everyone from Wimbledon, F1, NFL, NBA, FIFA, UEFA, broadcasters beIN, Sky and the BBC.”

Those hoping the WTO ruling would not affect the Newcastle takeover will likely be disappointed. The Premier League’s approval of the £300 million sale to the Saudi Public Investment Fund would contradict its own decisions and the factual evidence presented during the WTO proceedings, as well as submissions made to the US government and the European Commission over the past three years.

The WTO has conclusively found that the Saudi government has actively promoted and supported the beoutQ pirate operation from its inception, breaching its international obligations to protect intellectual property rights.

Prospective Premier League club owners must pass a “fit and proper persons” test. This vetting process has previously approved sales involving state-affiliated entities, such as Manchester City’s acquisition by a company owned by Mansour bin Zayed al-Nahyan, deputy prime minister of the United Arab Emirates, and Sheffield United’s purchase by Abdullah bin Musa’ad bin Abdulaziz Al Saud, a Saudi royal family member.

However, piracy directly impacts the Premier League’s revenue, primarily derived from broadcasting rights. The League may therefore scrutinize more rigorously a sale involving a state-controlled investment fund found guilty of international IP law violations. According to beIN Media Group, the piracy has cost broadcasters over $1 billion as of October 2018, and the Premier League itself has made multiple legal representations against the piracy.

The Owners’ and Directors’ Test disqualifies individuals with certain criminal convictions, including offenses involving dishonesty. Specifically, the Premier League handbook cites “dishonestly receiving a programme broadcast from within the UK with intent to avoid payment” as a disqualifying offense.

While the test does not explicitly address human rights considerations, it does set clear standards regarding criminal conduct related to intellectual property and broadcasting rights. Given the WTO’s findings, the Premier League faces a complex decision balancing legal compliance, ethical considerations, and commercial interests in the Newcastle takeover.

As the situation develops, the ruling against Saudi Arabia’s role in beoutQ piracy remains a pivotal factor in assessing the suitability of Saudi-backed ownership in English football.