Sources: Newcastle United multi-club empire plot revealed
Newcastle United have no immediate plans to launch a City Football Group-style network with a full takeover of another club but are exploring doing so as part of a “long-term formula”, sources have told Football Insider.
The owners are instead exploring the feasibility of partnerships with other teams that would not necessarily require an equity investment.
As has been reported elsewhere, collaboration with or minority investment in an existing multi-club network is also a possibility.
A full takeover of another club or even multiple teams remains a possibility in the future, but those plans have been described by a source as part of a “long-term formula.”
It is believed that a more streamlined approach that involves cooperation with European clubs is more likely for the Magpies at this stage.
Multi-club systems and strategic partnerships have been employed by the likes of Man City parent company City Football Group and the Red Bull network for commercial and sporting reasons.
Newcastle director Amanda Staveley has previously suggested that a multi-club operation would be an effective workaround for the UK’s post-Brexit points-based visa system.
It looks increasingly likely that the work permit regulations will be relaxed at least slightly in the coming years, with the FA, Home Office and Premier League currently in talks over a possible compromise.
Private equity groups like 777 Partners and MSP Sports Capital meanwhile have also made major inroads in the multi-club market in recent years for more mercantile reasons.
Diversifying risk as well as brand building and general commercial expansion are among the business-geared benefits of having a multi-club portfolio.
In other news, Newcastle United told what it will take to complete Barnes deal.