It has now been reported that the Newcastle United owners are in talks with investors about taking a minor stake in the football club.
This news comes via a media exclusive published by Reuters.
They report that three different sources have all informed them that: ‘Saudi Arabia’s sovereign wealth fund PIF is in talks with investors over them taking a minority stake in Newcastle United as part of its fundraising plans for the Premier League club’s stadium.’
A new state of the art training complex costing around £200m is expected to be announced in the near future, with previous widespread reporting across the media that land has been bought at Woolsington, near Newcastle airport, from former NUFC owner Sir John Hall.
The really big infrastructure project that fans are waiting for though, is what will happen regarding stadium plans.
The Newcastle United ownership group met on Tyneside three weeks ago, with a 25 strong Saudi Arabia PIF party flying in ahead of the Brighton match at SJP (Newcastle United Chairman and PIF Governor Yasir Al-Rumayyan pictured above at that Brighton match). Talks were held with Eddie Howe about progressing things on the football side, whilst meetings were also held with CEO David Hopkinson and other senior staff regarding the business side of things. With the two huge infrastructure projects said to be top of the agenda.
Reuters reporting that when it comes to a brand new Newcastle United stadium (or major redevelopment of St James’ Park), the club’s owners ‘could issue new shares to a prospective new backer of the plans.’
Even the likes of Manchester City have brought in new investors since Abu Dhabi/Sheikh Mansour bought the club. Investors from both the United States and China buying into Man City.
This media exclusive going on to say: ‘Newcastle United CEO David Hopkinson told Reuters that the club was considering building a new stadium, while a renovation would cost in the hundreds of millions of pounds. A new stadium could cost in excess of 1 billion pounds ($1.34 billion), said Hopkinson, who referred questions about the talks involving PIF to the Saudi fund itself. Saudi Arabia’s PIF declined to comment.’
Reuters add that one of their sources told them: ‘Another option to raise new funds includes a potential securitisation of Newcastle’s commercial revenue…adding no decision has been made yet on the investment.’
A little strange that nowhere in the Reuters piece does it mention that the Saudi Arabia PIF already have minority shareholders, with the Reuben family owning 15% of the club and PIF 85%. Although no doubt that of course it is the Saudi Arabia PIF that will be in charge of any major projects at the club.
Newcastle United fans hoping that something official on stadium and training ground plans will be announced in the near future but for now the wait continues.