Newcastle’s owners can borrow ‘whatever they want’ to finance new stadium project
Newcastle United are still considering their options over whether to build a new stadium or remain at St James’ Park.
Newcastle have been exploring new stadium plans over the past couple of years, with both options of renovating their current home or building a new ground on the table.
Bloomberg reported on 24 September, Newcastle have opened talks with lenders over a financing deal for the development.
The news outlet said St James’ Park chiefs are discussing the “feasibility and cost” of a deal with “a number of institutions” over a package that could total £1billion.
Former Man City financial adviser Stefan Borson exclusively told Football Insider the covenant Newcastle’s owners – the Saudi Public Investment Fund (PIF) and the Reuben Brothers – can give lenders is “very strong”.
Newcastle have two 'very wealthy' owners
Newcastle had been hoping to announce stadium plans in early 2025, but club chiefs are aware of the importance of the decision as they continue to weigh up the situation.
Tottenham and Everton are the latest Premier League clubs to have built new stadiums.
Speaking exclusively to Football Insider about Newcastle’s lending options, Borson said: “Ultimately, it can be guaranteed by two very wealthy shareholders, so the covenant that they can give is very strong.
“Even if there isn't a formal guarantee involved, and there might be, but even if there wasn't a formal guarantee, just having those two figures, the Reuben’s and the Saudi’s behind it, means that they're going to be able to borrow really whatever they want because the banks know that there's zero possibility that PIF and the Reuben's will allow it to go into administration and therefore jeopardise any of their money.
“I think they'll end up getting whatever they want.”
PIF and the Reuben Brothers took over Newcastle alongside Amanda Staveley’s PCP Capital Partners in October 2021.
Newcastle hire could speed up new stadium decision
Eddie Howe’s side could now speed up their decision around the stadium development following the appointment of their new chief executive.
Newcastle have appointed David Hopkinson as their CEO, with the 54-year-old starting work on Tyneside earlier this month.
Hopkinson has joined Newcastle from Madison Square Garden Sports, where he was president and chief operating officer, spearheading the business operations of the New York Knicks and New York Rangers.
The Canadian also previously operated as chief commercial officer during his 24 years with Maple Leaf Sports and Entertainment, focusing on Toronto Maple Leafs and Toronto Raptors’ commercial activities.
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