Saudi Arabia’s sovereign wealth fund is considering funding a new stadium development for English Premier League (EPL) side Newcastle United, according to UK media reports.
The Public Investment Fund (PIF), which has over $925 billion worth of assets, led a buyout of Newcastle in October 2021, alongside PCP Capital Partners and RB Sports & Media in a deal valued at about $410 million.
It has since spent $330 million on new players and funded multi-million dollar renovations at its St James’ Park stadium and a training facility in Benton, a suburb of Newcastle upon Tyne.
Reports on Friday suggest PIF is considering spending an additional $3 billion to build a new 65,000-seater stadium in Newcastle to add to its spend in the north east of England.
“PIF was likely to have been enticed to buy United by the prospect of real estate development opportunities,” said Simon Chadwick a professor at Salford University in Manchester and an AGBI columnist.
Newcastle United refused to comment when contacted by AGBI. PIF did not respond to questions. It is understood the preferred option is for a new-build at Leazes Park, near the current stadium, according to the Daily Mail.
The alternative is to redevelop St James’ Park, where Newcastle has played home matches for the last 133 years, and increase its current capacity from 52,000 to 60,000. No decision has been made according to the Daily Telegraph.
The new-build proposals are believed to be based around a similar venue to the $2.3 billion Allegiant Stadium in Las Vegas, which opened its doors in 2020.
The speculation around a new stadium comes as EPL side Manchester United this week unveiled plans for a new 100,000 seater home at a cost of $2.6 billion.
Current EPL champions Manchester City, owned by Sheikh Mansour bin Zayed Al Nahyan, vice-president and deputy prime minister of Abu Dhabi, is currently completing a $388 million expansion that will increase the capacity of its Etihad Stadium to more than 60,000.
The Newcastle plans will need to be rubber-stamped by the UK government before any development goes ahead and may not be plain sailing for PIF.
Former Newcastle chairman Sir John Hall tried to move the club into a 55,000-seater stadium in Leazes Park in the mid-1990s but those plans were shelved following local objections and political pushback.
“It’s a bold, necessary step that will help us match the ambitions of the biggest clubs in world football,” Peter Redding, Dubai-based content agency owner and football podcast host, said of the latest plans.
In 2023, Newcastle signed a £25 million-a-year front-of-shirt sponsorship deal with Sela, a PIF-backed leisure and entertainment business.
Chadwick said that one scenario is that the new stadium will be created and positioned as a leisure and entertainment destination, a cornerstone of Sela’s developing presence in Britain.
Funding a new stadium would have the additional benefit of ending speculation over PIF’s commitment to Newcastle United. Rumours earlier this season suggested the sovereign fund has been considering an exit from its investment.
“One suspects that PIF will retain NUFC ownership and put the club into the service of other Saudi assets,” said Chadwick.
Leave a Reply