This week, it emerged that PIF would consider selling a stake in Newcastle United to fund the club’s stadium ambitions, but the same report mentions a second option which has barely been noticed.
Reuters broke the news yesterday that the Public Investment Fund is holding discussions with potential investors who could provide capital to either expand St James’ Park or build a new home for Newcastle – likely on Leazes Park – in exchange for an equity stake in the club.
Today, the club itself announced that it has acquired grade-one listed Leazes Terrace in a move which is seen as potentially greasing the wheels of a new stadium development. That transaction reportedly cost PIF £25m and, given the flurry of activity in recent days, fans are sensing an acceleration at long last.
Seven Premier League clubs earn more matchday income than Newcastle, who generated £52m through the turnstiles last season, though that figure will have risen significantly in 2025-26 due to Champions League participation.
Tottenham and Everton now occupy shiny new stadiums; Liverpool have recently completed an expansion; Manchester City are doing the same; Arsenal are plotting adding 10,000 in capacity; Leeds United, Aston Villa and others are also looking to increase the size of their stadiums.
The future of St James’ Park, which has seen some of its best and most raucous days in the last five years, has been on the agenda since the very first day post-PIF takeover in 2021.
And while external investment is certainly a viable option, some commentators and finance experts have suggested it signals that the Saudis’ interest in their Premier League project is waning, in line with their withdrawal of funds for LIV Golf or any number of so-called ‘giga-projects’ back home.
However, the Reuters report also says that Newcastle are considering the securitisation of their commercial revenue as an alternative funding option. But what does that mean?
In layman’s terms, it means Newcastle could potentially borrow heavily against future sponsorship, retail and events income instead of raising money through traditional investment.
In 2024-25, Newcastle’s commercial income was £122m, a quite remarkable rise from the £21m they earned in the last full season under Mike Ashley’s ownership.
If Newcastle were to make this move, it would be a similar approach to that taken by Barcelona in recent years, who have effectively raised cash upfront against future revenue, most notably by selling part of their future TV income and issuing long-term stadium-backed bonds.
The disadvantage is that this method of financing St James’ Park 2.0 would be a burden on cash flow from season to season, just as traditional interest-bearing loans have been for Tottenham and Everton, for example. But from PIF and the Reuben Brothers’ perspective, it might be a more favourable option if it means they aren’t diluted as shareholders.
And with Newcastle now valued at over £1bn by most industry experts (and indeed the deal that saw Amanda Staveley and Mehrdad Ghodoussi sell their stake in 2024), that could be a significant factor.