PIF to ‘pump more money’ into Newcastle after project completion
Newcastle United’s owners can pump more money into the club after completing their stadium development.
That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider that is the only way the Saudi Public Investment Fund (PIF) can control what it puts into the Magpies.
The sovereign wealth fund took over Newcastle in October 2021 after agreeing a £305million deal with former owner Mike Ashley, but the group has so far been restricted by the financial regulations.
PIF has been considering its stadium plans on Tyneside over the past four-and-a-half-years, with both the options of renovating St James’ Park or building a new ground on the table.
However, Newcastle’s owners have shown a lack of decisiveness around the issue as the wait goes on for a decision to be made.
How PIF can increase Newcastle investment
PIF held its annual meeting with Newcastle chiefs at the end of last month, where the ownership group reaffirmed its commitment to the club.
Eddie Howe is understood to have faced tough questions, with his side currently sitting 13th in the Premier League table.
| Financial Metric | Value |
| Total Revenue | £335m |
| Commercial revenue | £123m |
| Pre-tax profit | £35m |
| Wages | £243m |
Speaking exclusively to Football Insider, Borson discussed what PIF must do to take Newcastle forward.
“I don't see that they've got much choice but to carry on doing what they've been doing,” said Borson.
“They're not in a position where they can dramatically change how they spend money. They're also going to be dealing with a settlement agreement with Uefa. Now, if they're not in Europe this season, that makes it a little bit easier.
“But that will be factored in in terms of the discussions that they're having right now on the settlement agreement in terms of what that settlement looks like, so it’s another complexity.”
Why stadium decision is key to Newcastle success
Borson insisted PIF must make a decision on Newcastle’s stadium plans soon as they look to compete financially with their Premier League rivals.
“The stadium is clearly the big thing that will drive everything,” said Borson.
“If PIF are prepared to support that project, that's something that needs to be done sooner rather than later.
“It will then allow them within the various regulations to effectively pump more money into the top with no financial fair play implications because it's all carved out of financial fair play, so that's really almost the only thing that they can do that they can control.”