Amanda Staveley is now part of Newcastle United’s history, rather than its present.
The club recently announced a restructuring of the ownership, with Amanda Staveley and Mehrdad Ghodoussi selling their Newcastle United shares to PIF and the Reuben brothers.
Their time on Tyneside is over, much to the shock of Toon fans. Staveley leaving rocked Eddie Howe, while the news also surprised the Newcastle players.
Since news of their departure, Newcastle supporters have paid tribute to Staveley and Ghodoussi. They were pivotal in making the takeover happen. In short, the club would not be where it is today without them.
But Staveley was always going to be at Newcastle short-term, and has now left St James’ Park.
Whether Newcastle United will be able to spend more now Amanda Staveley has gone
PIF now own 85% of the club, and the hope is that this change will allow the Newcastle United project to move into its next phase.
However, TBR Football‘s finance expert Adam Williams has explained to Geordie Boot Boys why Staveley’s departure does not necessarily mean that the club will be able to spend even more money.
“Without being privy to the inner machinations at Newcastle, it’s impossible to say with certainty what the funding structure is,” he said.
“However, a shareholder’s equity doesn’t automatically determine their obligation to fund the company.
“The figures are famously unreliable, but Staveley’s net worth is reportedly around £110million. But I don’t think she necessarily has huge liquidity. Yes, there were headlines of her raising £500million through PCP Capital Partners with a view to a new football investment, but that is not her money per se.
“Historically, she has acted as a conduit for Middle Eastern money – whether that be from Saudi Arabia, Qatar or Jordan.
“She borrowed from the Reuben Brothers to fund her initial equity investment in Newcastle. Paradoxically, she has since used the cash from the sale of her stake to the Reuben Brothers to reimburse them for the loan.
“What’s more, the club’s last set of accounts showed that she had also borrowed a seven-figure sum from the club to fund legal fees. She also faced a bankruptcy petition earlier this year over an alleged unpaid debt with a former business partner, which she is currently appealing.”
Staveley exit will not impact Newcastle’s expenditure
Williams adds that Staveley was probably not massively involved in financing the club during her time on Tyneside, so there is unlikely to be any changes.
“All this is to say, she may be asset rich but that doesn’t necessarily means she is cash rich. I doubt she was involved with funding the club in any meaningful way.
“In any case, Newcastle’s financial model under PIF is very simple – spend as much as you are allowed to within the limits of Profit and Sustainability Rules.
“So I don’t think Staveley’s departure will affect their expenditure, either in the transfer market or in infrastructure with the expansion of St James’ Park and so on.”
But while it might not have a financial impact, Staveley’s departure will massively change the way that Newcastle United is ran.
She had a personal touch that connected the club to the fans – there was transparency and emotion in the decisions she and her husband made.
Staveley was brilliant when it came to Newcastle’s PR, and that is something that the club will need to address in her absence.
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