The Saudi Arabian-backed takeover of Newcastle United has potentially moved a step closer after the country resolved its TV piracy dispute with Qatar broadcaster beIN Sports.

The issue has been part of a dispute between Newcastle and the Premier League over a £300m takeover which collapsed in the summer of 2020.

That centred on whether the Saudi owners would pass the league’s owners’ and directors’ test, which measures the suitability of owners at a club.

It is believed that arbitration set for 3 January would centre on whether the Saudi state would effectively sit on the Newcastle board – and therefore be tested on alleged human rights abuses.

But an end to TV piracy complaints, which would break Premier League rules, removes a significant hurdle.

Analysis

Dan Roan, BBC sports editor

Last year the Premier League was urged by beIN Sport – one of its largest overseas broadcast partners – to “fully interrogate” Newcastle United’s proposed £300m takeover by a Saudi-backed consortium because of alleged piracy of its TV rights.

The Saudi government always denied wrongdoing, but this apparent ending of the dispute with the Qatar TV giant appears to resolve a major obstacle to the hugely controversial deal for the club from happening.

But other issues remain.

There is still significant concern over Saudi Arabia’s human-rights record.

And then there’s the question of who would actually run Newcastle Utd if the deal was approved.

Ultimately, the Premier League failed to give the takeover the green light after its lawyers could not clarify the links between sovereign wealth fund PIF (which would have owned most of Newcastle United) and the Saudi state.

The Premier League was concerned that individuals not on the club’s new board would have had influence over decision-making at St James’ Park – not least because the Saudi Crown Prince is also the chairman of PIF.

Sources close to the consortium said they tried to prove to the Premier League that the Saudi government would have no say in the day-to-day running of the club, and it appears they will still need to do so for a deal to be salvaged.

The issue of TV privacy breaches was the subject of a World Trade Organisation report in June 2020, which said Saudi Arabia helped break international piracy laws.

Premier League chief executive Richard Masters also said in a letter in August 2020 that intellectual property rights were “critically important to the league’s commercial interests”.

BeIN Sports’ link to the takeover was raised in Newcastle’s Competition Appeal Tribunal last week where it was alleged by lawyers that the Qatari broadcaster had “improperly influenced” the Premier League into blocking the takeover based on its deal to show matches.

The claims came from Daniel Jowell QC, who was acting on behalf of St James Holdings, which wholly own shares for Newcastle and is also owned by club boss Mike Ashley.

A decision on that hearing is yet to be announced.

BeIN Sports is currently in the middle of a £400m deal to show Premier League games in the Middle East and North Africa region over three years.

The Premier League has declined to comment.