Kieran Maguire: Newcastle United ‘future-proof’ operation after £9m deal agreed
Newcastle United are trying to minimise risk as much as possible by purchasing land around St James’ Park.
That is the view of finance expert Kieran Maguire, who spoke exclusively to Football Insider about Newcastle’s recent acquisition of Strawberry Place.
Newcastle have agreed a deal to purchase a plot of land behind the Gallowgate End of St James’ Park, providing future opportunities for stadium expansion.
Previous owner Mike Ashley sold Strawberry Place in 2019 to Helios Investment Partners and the Doncaster firm Marrico Asset Management, but the Magpies’ new owners moved swiftly to resecure the land for the football club.
Ashley sold the land for £9million four years ago, and The Times report that Newcastle have likely paid slightly less than the selling price to reacquire the plot.
Newcastle have not yet drawn up plans to expand its 52.300-capacity stadium, but their purchase provides opportunities to expand the Gallowgate End or provide services around the venue.
Maguire praised Newcastle for completing the deal quickly as they easily could have lost out to commercial or residential developments.
“In respect of the land acquisition by Newcastle United, I think they’re trying to future-proof any downside risk,” Maguire told Football Insider’s Sean Fisher.
“If the land had gone to a commercial organisation and it has been used for residential or for retail purposes, then once it’s gone, it’s gone.“
“Newcastle buying it offers opportunity even in the short term to improve matchday revenue.“
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