An interesting update on how committed the Saudi Arabia PIF majority owners of Newcastle United are.
The i Paper providing the update ahead of next week’s meetings between senior club staff and the Newcastle United owners.
Matfen Hall set to host the meetings ahead of the Brighton home match.
Yasir Al-Rumayyan and the other Newcastle United directors set to meet Eddie Howe for discussions.
As well as and arguably just as importantly (more importantly?), the Newcastle United owners set for discussions as well with CEO David Hopkinson and other members of the United hierarchy.
How can Newcastle United close the gap, on and off the pitch, with their rivals? Both financially and of course in a footballing sense.
Mark Douglas at The i Paper reports that they have spoken to insiders at the club and inside the Saudi Arabia PIF.
Douglas says that their sources are “unequivocal” about what is (and isn’t) going to happen and that whilst some mischief makers have claimed the Newcastle United owners could now sell the club, the reality is very different. The sources adamant that there is absolutely no change in the owners’ long-term plan for Newcastle United.
The i Paper stating: ‘Last week PIF announced a new strategy which split the fund’s investment into three “pots”. The first, “Vision 2030”, is for domestic projects. The second, “financial”, is for investments in equity projects and stocks and shares. Newcastle sits in the third pot: “strategic”. PIF sources have always said that while the investment is relatively small by the fund’s standards it is important because it is so public-facing. One source went further, referring to it as a PIF “crown jewel” because it gives them a presence in the globally respected Premier League.’
We are now more than four and a half years since the Newcastle United takeover.
Yet still no official announcements on the major infrastructure projects which are essential if the club are going to be able to properly compete long-term, on and off the pitch.
Mark Douglas stating that this is now about to change: ‘In a matter of weeks…Newcastle fans are set to get a visible sign of the Saudi Public Investment Fund’s continued commitment to the club. Confirmation of a further tranche of investment by the club’s majority owners – earmarked to purchase the site of where a new state-of-the-art training ground will be built near the city’s airport – will land in the near future on Companies House…the funding has the green light. With doubts swirling about the club’s direction and Saudi commitment to investing in sport itself, confirmation of the first major infrastructure project of the PIF era cannot come a minute too soon.’
How will the huge and expensive infrastructure projects be paid for?
The man from The i Paper revealing: ‘The training ground will be funded by a combination of PIF investment and capital raised through the club taking on debt. That last point feels important. While the hope of Newcastle fans (and fear of their rivals) was that the club would be viewed as a trophy asset by a fund with deep pockets, that was never, ever intended to be the reality. “PIF is acting like an institutional investor because it is an institutional investor,” was how one source put it. No private equity fund in the world would write a blank cheque to fund a stadium or training ground and PIF is no different.’
What about the big one though.
What about a far bigger capacity stadium, both to allow far more fans to see the team AND to help seriously grow the revenues?
The report detailing: ‘One source familiar with football acquisitions believes Newcastle are now worth more than £1bn based on the price paid for similar clubs. Newcastle is still growing. For many fans, though, there is a sense of drift about Newcastle. PIF have no intention of challenging the financial rules that have hamstrung the club’s ambitions, which has caused disquiet…There is frustration that the issue of St James’ Park expansion is not resolved a year on from a decision being supposedly imminent, although The i Paper has been told that the intention is a call will have been made by the end of the year.’
Events on the pitch are of course always the immediate concern for pretty much all Newcastle United fans.
Mark Douglas reporting: ‘With Yasir al-Rumayyan expected to jet into the North East to attend it is being viewed as a chance for the chairman to “grill” Howe on this season’s failings. The reality will be different…Rumayyan enjoys a warm relationship with Howe and has regularly enthused about his track record at Newcastle…as it stands the plan is to continue with Howe next season. He has been part of all the club’s preparations for the coming campaign and recruitment planning – which has stepped up this week – has been tailored to bringing in players who would operate well in his system and favoured style…The smart money remains on Howe being in charge – but of a very different looking outfit come August.’
This next year or so looks huge for Newcastle United, how will things look by the time we get to summer 2027?
Will 2025/26 be viewed as having been a bump in the road when it comes to Premier League form and things back on track?
Just as (more?) importantly, how will things look off the pitch?
If by summer 2027 we don’t have a far better idea of what is happening regarding the major infrastructure projects, I think we will all be scratching our heads. Thinking that with almost six years since the takeover, what exactly the Newcastle United are trying to achieve with their asset, their football club on Tyneside.