Newcastle’s owners have made ‘surprising’ new stadium decision
Newcastle United’s owners are set to make a once-in-a-generation decision as they consider plans for a new stadium.
Newcastle have been exploring their 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 Newcastle could avoid facing any profit and sustainability (PSR) issues by adding 15,000 more seats to the mix.
Newcastle could get PSR boost after new stadium reveal
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, Borson said: “A slightly surprising thing is they haven’t just pressed on with it or provided the equity themselves. I just think they need to get on with it.
“I mean, it makes such a big difference if you can add 15,000 seats. There’s no better way around PSR than having 15,000 seats.
“All of the cost is outside of PSR if you structure it correctly. If you don’t do what Everton did, so you do it in a methodical way and you make it very clear that the debt is stadium debt, not general debt, so as long as you do it in the right way, then it’s a no-brainer from a PSR perspective.
“If you’ve got very deep pockets, I think it’s less of a no-brainer if you’re spending £1bn and actually you’re not massively improving the facility. But if you’re doing it as a way round PSR, it’s ideal.”
The Saudi Public Investment Fund (PIF) and the Reuben Brothers took over Newcastle alongside Amanda Staveley’s PCP Capital Partners in October 2021.
Newcastle could make new stadium announcement soon
Eddie Howe’s side could now speed up their decision on 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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