Kieran Maguire: Newcastle United spending to soar past £700m – ‘this will attract real publicity’
The Saudi Public Investment Fund will garner far more publicity if they are successful with Newcastle United than they would have done as minority owners of Man United.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the PIF’s apparent decision to invest in the Magpies instead of the Red Devils.
The sovereign wealth fund paid Mike Ashley £305million for 80 per cent of the club in October last year.
The first 12 months of their premiership have been a triumph as the Tynesiders have gone from relegation favourites to hopes of a top-half finish in 2022-23.
The owners installed a number of new directors at St James’ Park after the buyout, including PIF governer Yasir Al-Rumayyan as chairman.
As quoted by The Athletic on Tuesday (4 October), Al-Rumayyan has revealed that PIF were offered a 30 per cent stake in another Premier League club for £700m before they completed the Newcastle takeover.
It is believed that Man United are the club in question.
Maguire claims that PIF would not have been able to take as much credit for financing the revival of the sleeping giants as they will be able to if they manage to steer Newcastle towards silverware.
The spreadsheet wiz also suggests that PIF’s spending at Newcastle will soon exceed the £700m they could theoretically have spent to buy a stake at Old Trafford.
“They have managed to model Newcastle United as they see fit,” he told Football Insider’s Adam Williams.
“They have invested substantial sums that will take the total spend well beyond the £700m in due course.
“Not only are they investing in talent off the pitch but there has also been a substantial reanalysis with regards to infrastructure and the support network for the first team.
“Ultimately, that is was the focus should be for any football club. That will allow the club to progress.
“We could potentially see Newcastle challenge for European places relatively quickly. That will start to generate a return on that investment.
“The attention for that will come back to the owners, whereas they wouldn’t have got the publicity and reviews that they are hoping for had they been minority owners at another club.”
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