PIF weigh up £300m move that would help green light major Newcastle United plans
The Public Investment Fund of Saudi Arabia could dilute their stake in Newcastle United to help raise funds for the stadium and training ground projects.
The Public Investment Fund of Saudi Arabia is reportedly prepared to sell up to a 25% stake in Newcastle United to raise equity for the club’s training ground and stadium projects.
The Magpies’ owners have already approved plans to build a new £200million training centre - set to be built on a large site at Woolsington near Newcastle airport - but an official announcement is still awaited.
Meanwhile, a decision on whether to extend St James’ Park or build a new stadium is yet to be made.
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PIF prepared to sell up to a 25% stake in Newcastle United
Reuters reported earlier this week that investors had approached PIF about potentially selling a minority stake in the club to raise funds for the stadium project.
Currently, the club is 85% owned by PIF and 15% owned by RB Sports & Media, both of whom increased their stakes in 2024 following the departure of Amanda Staveley’s PCP Partners.
Now, The Times has drilled down on specific numbers, reporting that PIF is prepared to dilute its current holding to around 63.75% after being told in a club meeting last month that equity was needed to progress plans for a new ground and training facility.
PIF bought the Magpies for £305million in October 2021 and that value is thought to have increased to £1.5billion, meaning, in theory, they could raise more than £300m by even just selling a quarter of their shares (21.25%).
It is thought an expansion would cost around £500million, while a new build would be closer to £1billion.
Newcastle United play down St James’ Park expansion theory
Newcastle announced on Tuesday afternoon that they had purchased a “significant portion” of Leazes Terrace, suggesting they were indeed leaning towards expanding St James’ Park.
The Grade I listed structure is adjacent to St James’ Park and its western elevation is directly opposite the East Stand, restricting the ability to expand the stand’s capacity, which has not been majorly redeveloped since 1972.
However, The Gazette has been told that all options remain on the table and that the purchase benefits either an expansion or a stadium rebuild.
“This strategic purchase is part of the club's long-term planning as it continues to assess all credible and feasible options for the future of its home stadium,” a club statement read.
“It provides Newcastle United with greater flexibility and ensures any future decisions support the club's ambitions, as well as its responsibilities to the local community and the city of Newcastle upon Tyne.
“The club recognises the building’s historic and architectural significance and is committed to its preservation.”
United have bought the terrace’s northern, southern and western elevations, including all areas facing the stadium. It also includes most of its eastern elevation, with a small block of private residences remaining in this part of the building.