PIF expected to ‘put their hand in their pocket’ to finance £200m Newcastle plan
Newcastle United’s owners have ambitious plans for the club over the coming years on Tyneside.
Saudi Arabia’s Public Investment Fund (PIF) has invested regularly in Newcastle since securing its £305million takeover in October 2021.
PIF has been considering plans to build a new training ground in recent years, providing Eddie Howe with better facilities to work with behind the scenes.
The Daily Mail reported on 13 January Newcastle are set to announce plans for a world-class £200m training ground complex.
He revealed the Tyneside club are ready to purchase a site in Woolsington, close to Newcastle Airport and five miles from St James’ Park.
Why Newcastle’s owners will finance training ground development
Former Man City financial adviser Stefan Borson exclusively told Football Insider he expects Newcastle’s owners will “put their hand in their pocket” to finance the new training ground development.
It is understood the construction could take up to two years to be completed.
Speaking exclusively to Football Insider, Borson said: “I assume that the owners will just put their hand in their pocket.
“I can’t imagine they’re going to borrow for financing that. There’s no real need to. From a PSR perspective, it’s all off PSR, so I imagine they’ll just put the money in and probably offset it with some kind of sponsorship deal from the new Saudi airline.
“The Newcastle Supporters Trust recently helped out with an advertising campaign for Saudia, which is one of the airlines that’s advertising on the perimeter.”
Newcastle could land major training ground sponsor
Newcastle are looking to boost their revenue to be able to compete financially with some of their Premier League rivals.
While PIF has utilised its Saudi connections in commercial deals, the associated party transaction (APT) rules have largely prevented any major agreements from taking place.
Newcastle previously struck sponsorship deals with PIF-owned Sela and Noon worth a combined £32.5m, but it is believed they could have potentially banked a higher fee with a relaxation of the APT rules.
Howe’s side will be exploring potential options for a training ground sponsor once their plans are confirmed.
Newcastle posted a club-record revenue in their latest published accounts for 2023-24 after their overall turnover surged from £250m to £320m, while their commercial income improved from £47m to £86m across the same period.
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