The Saudi Public Investment fund have been frustrated and anchored by the Premier League’s Profit and Sustainability Rules since their takeover of Newcastle United in October 2021.
PIF have been unable to bankroll losses of more than £105m over a rolling three-year period, as is required in the PSR system
And while there can be no doubt that the hundreds of millions they have pumped into Newcastle has transformed the club, they have not yet been able to realise their huge ambitions on Tyneside.
Their future flexibility will come from a greater emphasis on commercial income and the possibility of a profitable new or upgraded stadium at St James’ Park.
However, given the current roadblocks and their growing emphasis on 2034 as the World Cup host city, some pundits have suggested that Newcastle is no longer PIF’s first priority.
That impression is addressed in the most recent study about sovereign wealth funds.
Could PIF sell Newcastle?
Newcastle is reportedly reworking their long-term strategy for the team in light of Amanda Staveley’s departure, which has signaled the start of a new era at St. James’ Park, according to iNews.
According to the article, PIF continues to have a highly active role in the club’s operations and plans to add Brad Miller, an associate of Reuben Brothers, as a new director to the board.
The fact that PIF governor Yasir Al-Rumayyan has approved almost every executive level choice the club makes is also described in detail.
Professor Simon Chadwick, a specialist in sports geopolitics, told iNews that PIF does not consider Newcastle for investment because “the smash-and-grab mentality at Paris Saint-Germain or Manchester City is absolutely not the case at Newcastle.”
“Just take a look at the commercial team’s thoughtful development. They have selected professionals with solid backgrounds in the fields to which they belong.
“Saudi Arabia clearly acquired an investment asset, not a vanity project,” I said. I’ve been saying for a while that they will sell it when the time comes for them to do so.
PIF’s long-term plan at St James’ Park
Ownership regimes that are preparing to leave the market are typically reluctant to finance infrastructure investments totaling billions of pounds.
PIF has already invested millions in enhancing the club’s infrastructure and is planning to renovate the training site in addition to building a new stadium.
Furthermore, even if the owners probably do not view Newcastle as a classic capital appreciation project, the long-term goal is to create a foundation for its profitability.
Furthermore, it appears that they may soon have more freedom to spend in the meantime given recent changes to the Premier League’s affiliated party transaction regulations.
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