Spending spree: Why Newcastle United may not be the best investment for Saudi Arabia right now - Arabianbusiness:
There’s a certain devil-may-care glamour about going on a shopping spree when you’re already living beyond your means. It’s probably not the best way to convince your creditors to keep putting up the cash, however.
Saudi Arabia might want to reflect on that after its recent splurge on oil companies, cruise ships and soccer. In the past month, the kingdom’s sovereign wealth fund has bought or been linked to plans to buy an 8.2 percent stake in cruise operator Carnival Corp.; about 80 percent of Newcastle United Football Club; and holdings in Royal Dutch Shell Plc, Total SA, Eni SpA and Equinor ASA.
Alarmingly, the most sensible item on that shopping list may well be the 13th-placed team in the English Premier League. Carnival shares, for instance, are already down by about a third since the kingdom’s Public Investment Fund (PIF) completed its acquisition of stock in the business last month.
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