Newcastle United officials are preparing to make a decision on the future of St James’ Park in 2025.
Ever since the change of ownership, Newcastle United have spoken about getting a bigger stadium.
Initially, all the talk was about making St James’ Park bigger, no matter how difficult it would be. However, there is now the possibility of a completely new stadium being built.
Some Newcastle fans are coming round to the idea of a new stadium, and even more fans may have changed their opinion after what club COO Brad Miller said at an event last week.
Miller said Newcastle could double their revenue with a new stadium, whilst also hinting that the club’s new location would not be too far away from St James’ Park. That will appeal to fans, as it is pivotal that Newcastle United remain in the heart of the city, while the revenue boost would enhance the club’s PSR position.
PIF leaning towards new St James’ Park
Progress on Newcastle’s stadium decision is expected in 2025, with all the noise currently hinting towards PIF building a new ground rather than expanding St James’ Park.
That is the view of TBR Football’s financial expert Adam Williams, who has spoken to Geordie Boot Boys about how a new stadium could make a massive difference to Newcastle United’s revenue.
“It sounds as though Newcastle are favouring a new stadium as opposed to a redevelopment of St James’ Park,” he said.
“I used to live in Newcastle and I understand the emotional connection people have with St James’ Park. Its unique in its geography in the middle of the city, and to lose the buzz in the city centre on a matchday would, in my view, be a huge shame. I don’t think you can put a price on that.
“But setting aside the emotional considerations, I can see why they are leaning towards a new build entirely.
“For PIF, the upfront is basically immaterial. For other clubs, servicing the debt of a £2billion stadium might not be feasible, but PIF have the capacity to privately finance the stadium – and I suspect they will do exactly that.”
Newcastle United can look to Tottenham’s new stadium
From an emotional standpoint, Newcastle United should stay at St James’ Park.
For financial reasons, a new stadium could be transformative. That is the view of Williams, who has pointed towards Tottenham Hotspur’s revenue increase since leaving White Hart Lane.
“It’s not 100 per cent clear whether Miller [Newcastle United COO] is talking about doubling the revenue relative to what they would earn if they expanded St James’ Park to, say, 65,000, or whether he means doubling it relative to what they earn now,” he added.
“I expect it is the former, as I think Newcastle could probably earn twice as much matchday income and commercial revenue just with the addition of 10-15,000 seats at St James’ Park, whereas a rebuild would probably come close trebling it.
“Look at Spurs, for example. They have treble their commercial and matchday income since moving to the new stadium. The capacity of the Tottenham Hotspur Stadium compared to White Hart Lane is bigger, but not three times as big.
“The real value lies in the hospitality suites and the manner in which you can commercially orientate your entire ground if you are starting from scratch. Basically, the whole project is geared towards emptying wallets in a way that stadium design in the previous era was not.
“I don’t think Newcastle can hit quite the same heights as Spurs, purely because they don’t have the advantage of being in London, which is a major draw for corporate types and sponsors.”
How much Newcastle United could earn from a new stadium
While Newcastle do not have the London factor that Spurs possess, Williams still believes that building a new stadium could be an incredibly lucrative decision, should PIF go down that route.
“I do think it would be transformative all the same and their PSR quota would skyrocket, albeit after several years of construction,” he said.
“Newcastle’s matchday income in the last recorded financial year, 2022/23, was £38million and their commercial income was £47million, so £85million combined.
“I think you could reasonably expect that to soar to at least £200million at a new stadium if PIF pull out all the stops. And that’s a conservative estimate.”
That additional revenue could change the way that Newcastle United operate in the transfer market, at a time when PSR continues to hold the club back. PIF know they need to generate more money for Newcastle United to progress, and may see a new stadium as the best way to do that.
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