Although St. James’ Park is Newcastle United’s home field, both the Saudi Public Investment Fund and supporters are amenable to the construction of a new stadium in order to provide the team the financial might to compete with the best in football.
Newcastle is still awaiting the findings of a feasibility study that will weigh the advantages and disadvantages of staying in St. James’ Park, which has been enlarged and upgraded, or moving to a new stadium.
Since PIF acquired the team in October 2021, matchday revenue has increased dramatically as a result of increased attendance and fan acceptance of higher ticket prices brought about by improved field conditions.
In 2022–2023—the most recent year for which financial information is publicly accessible—Newcastle made £38 million from its turnstiles.
Although their 2023–24 financial statements have not yet been made public, it is consistently predicted that Champions League gate receipts will result in a significant increase in that amount.
Given Eddie Howe’s team’s outstanding play, they intend to reclaim their place at Europe’s top table in 2025–2026. However, PSR will determine if they are able to fortify this January.
| Position | Team | Played | Won | Drawn | Lost | For | Against | Diff | Points |
| 1 |  Liverpool |
19 | 14 | 4 | 1 | 47 | 19 | 28 | 46 |
| 2 |  Arsenal |
20 | 11 | 7 | 2 | 39 | 18 | 21 | 40 |
| 3 |  Nottingham Forest |
19 | 11 | 4 | 4 | 26 | 19 | 7 | 37 |
| 4 |  Chelsea |
20 | 10 | 6 | 4 | 39 | 24 | 15 | 36 |
| 5 |  Newcastle |
20 | 10 | 5 | 5 | 34 | 22 | 12 | 35 |
| 6 |  Manchester City |
20 | 10 | 4 | 6 | 36 | 27 | 9 | 34 |
| 7 |  Bournemouth |
20 | 9 | 6 | 5 | 30 | 23 | 7 | 33 |
| 8 |  Aston Villa |
20 | 9 | 5 | 6 | 30 | 32 | -2 | 32 |
Brad Miller, the chief operational officer in charge of the stadium project, has predicted that whether the Magpies decide to rebuild or stay at NE1, their matchday revenue will treble.
In any case, the goal is to provide enough space for 60–65,000 spectators on game days.
A stadium renovation would significantly improve Newcastle’s standing under the Profit and Sustainability Rules (PSR) and have the potential to drastically alter the city’s skyline.
Since PIF’s acquisition, the odds have been stacked against PSR, formerly known as financial fair play, or FFP, with losses over three years being limited to £105 million under the Premier League system.
Increased matchday and commercial revenue from a new stadium would provide Howe and sports director Paul Mitchell with more market freedom, given PIF’s plan always aims to spend the maximum amount under PSR.
The only question is when or if Newcastle will take action on the stadium front, but before construction can begin, a number of problems must be fixed.
One of those is funding, which is estimated to cost £1 billion in any case.
PIF has plenty of capital, as seen by their £720 billion asset portfolio. However, liquidity—that is, how easily they may get funds—is a slightly different matter.
They are still somewhat dependent on outside funding despite having a number of incredible giga-projects to finance, like The Line, a 110-mile-long city contained in a single structure.
In any case, Newcastle’s stadium project is minuscule compared to other projects, but financial news indicates that PIF will continue to fund projects in the future.
PIF bank £5.6bn capital injection
In European football, the majority of stadium constructions are funded by long-term loans backed by future revenue, which are eventually repaid by the club rather than the owner.
However, earning or paying interest on loans is prohibited by Islam, which is the official religion of Saudi Arabia. This implies that conventional financing is unlikely to be used to finance Newcastle’s project.
PIF most likely has the funds to finance the stadium project privately, but they also depend on other Islamic financing sources like murabaha contracts.
Funds are raised in murabaha with the expectation of a return at a premium.
PIF has already generated £5.6 billion through this technique in order to finance future developments, according to Arabian Gulf Business Insight.
That £5.6 billion will basically serve as PIF’s overdraft.
And the money will probably come from a similar source when it comes time to renovate or redevelop St. James’ Park.
St James’ Park commercial boom can supersize Eddie Howe’s budget
Since PSR does not apply to infrastructure expenditures, PIF can invest as much as they like in creating Newcastle’s most profitable and cutting-edge stadium.
The estimated yearly revenue from matchdays at a renovated stadium with a 65,000-seat capacity is between £70 and £80 million.
The additional £30–40 million in revenue will go directly to the playing budget because PIF’s methodology maximizes the budget to the extent that PSR permits.
However, the financial gains would not only come from ticket sales; commercial revenue would also increase very immediately.
At Newcastle, stadium naming rights negotiations were strictly prohibited under Mike Ashley. The notorious “Sports Direct Arena” was a transient venture.
A branding agreement, possibly with a PIF portfolio company, would be more acceptable under PIF since there is greater recognition of the club’s need to increase revenue in order to compete at the highest level on the field.
Although estimates differ, TBR Football’s consultation with football financial specialists indicates that a £10–20 million agreement is reasonable and would not be affected by the Premier League’s APT regulations.
As Spurs have found at the Tottenham Hotspur Stadium, the chance to hold more non-football events can also be quite profitable.
When the cement dries, St. James’ Park might very well become the preferred location in the northeast for organizers wishing to host combat sports events or concerts, two of the highest-paying events.
Sponsors are ready to pay more to be associated with a team whose home stadium is among the greatest in the world, which is one of several less readily measurable but possibly equally important brand benefits.
By the time Newcastle releases their 2023–24 accounts in the coming months, their commercial income, which was £47 million at the last count, should have increased to £64 million.
After the stadium project is completed and their commercial plan has had a few years to develop, that might rise by 80–100%.
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