How much money Newcastle United have received from PIF in shareholder loans

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Newcastle United fans feel as if the club has been held back by the Premier League’s associated party transaction rules.

It has become much harder for Newcastle United to secure new sponsors in the aftermath of the 2021 takeover, with the Premier League changing its rules regarding deals with companies that are affiliated to a club’s owner.

This was in response to complaints from Newcastle’s Premier League rivals who were fearful that PIF would write blank sponsorship cheques that would allow the Magpies to spend huge amounts of money in the transfer market.

Despite having the richest owners, Newcastle United are not the richest club. They have been restricted in what they can spend, with PSR proving to be a major issue.

But while the Magpies struggle, other clubs have been benefitting from shareholder loans.

Manchester City take on the Premier League amid financial issue

And this is what Manchester City have been complaining about during their recent legal battle with the Premier League.

While Ian Wright has suggested that associated party transactions are crazy, there has been no clamp down on shareholder loans. That is despite the fact that multiple Premier League clubs have been able to receive interest-free loans for millions of pounds from shareholders.

Those loans do not reflect fair market value, which is something that associated party transactions must do.

How much Newcastle received from shareholder loans in 2022/23

Interestingly, Newcastle United are one of six Premier League clubs in the 2022/23 season that did not receive money from shareholder loans.

That is according to the Athletic, who report that Newcastle, Manchester City, Manchester United, Tottenham Hotspur, Fulham and West Ham United owed their owners no money from loans after the 2022/23 season.

In contrast, Everton owed £451million, while Arsenal owed £259million.

Newcastle United still very wary of PSR

Manchester City have opened up a can of worms with this legal battle against the Premier League. It feels like things are only going to get messier, as the Premier League champions bring to light a major issue regarding finances in the top flight of English football.

It is an issue that has hindered Eddie Howe’s side, despite Newcastle United’s owners being incredibly wealthy.

And despite the rules holding Newcastle back, it is Man City who have gone down the legal route rather than the Magpies.

In the meantime, Newcastle have spoken to companies in Saudi Arabia over possible sponsorship, as the club prepares for another transfer window that could be influenced by PSR.

It has been reported that Paul Mitchell wants to make a big signing in January. However, he will have to sell someone in the summer if he does that at the start of 2025. That is despite the fact the Magpies made no major signings in 2024.