PIF company plan major UK investment after £25m Newcastle United sponsorship deal

After agreeing a £25million per-season deal with Newcastle last summer, Sela have also ‘powered’ the new St James’ STACK fan zone at Strawberry Place. The Sela Cup has also taken place at St James’ Park in each of the last two pre-seasons.

But the Saudi Arabian events company are now planning to branch out away from Newcastle. According to Mail Online, Sela recently held talks to take over the Hyde Park Winter Wonderland in London but were unable to agree a deal.

The PIF-owned company were reportedly part of the bidding process and had discussions with Royal Parks of London regarding the event that attracts around 2.5million visitors every year. Despite Sela’s serious interest in the festival, they are now looking to invest elsewhere and expand its presence in the events sector in the UK.

Sela’s expansion plans and ambitions to increase its revenue in the UK market could prove beneficial for Newcastle. Increased revenue through commercial means will be crucial for Newcastle in continuing to comply with Premier League Profitability and Sustainability Rules and Sela play a significant part in that as the club’s main sponsor.

Another company owned by the Saudi Arabian Public Investment Fund, Riyadh Air, have recently confirmed a major sponsorship deal for the naming rights of Atletico Madrid’s Metropolitano Stadium. The stadium will now be called the Riyadh Air Metropolitano in a commercial deal described as the ‘most significant’ in the club’s history.

Stadium sponsorship could soon be part of Newcastle’s future too as the club pushes forward with plans regarding the future of St James’ Park. A new state-of-the-art stadium has also been discussed.

But first, Newcastle will want to have a clear picture on the fallout of Manchester City’s legal case against the Premier League which deemed certain aspects of the Associated Party Transaction (APT) Rules to be unlawful. The APT Rules were introduced just weeks after Newcastle were taken over by PIF.

As a result, Newcastle had to prove the £25million deal with Sela was of ‘Fair Market Value’ before it was approved. An emergency meeting between all 20 Premier League clubs to discuss APT Rules is due to take place on Thursday.