Questions have been asked of PIF’s commitment to Newcastle United.
When they bought the club from Mike Ashley in 2021, it was very clear that PIF‘s ambition was to take Newcastle United to the top of world football.
They certainly have the money to do that, but the problem is that Newcastle are not allowed to spend it. Financial rules have made it much harder for PIF to have an impact at St James’ Park, while progress has stalled.
It was recently reported that Newcastle are happy with their progress over the past three years. The hope is for more progress, but that requires more investment.
And that is why PIF’s latest announcement will have caused panic on Tyneside.
PIF plan to cut international spending
PIF chief and Newcastle United chairman Yasir Al-Rumayyan has announced that the sovereign wealth fund of Saudi Arabia are going to cut international spending.
30% of their spending is currently global, but that percentage will decrease to between 18% and 20%.
Instead, they will commit more money to the Saudi Arabian economy.
How Newcastle will be impacted by PIF announcement
That does not sound like good news for Newcastle United, but it would appear that the Magpies have nothing to worry about.
According to the Telegraph, Newcastle United will not be negatively impacted by PIF’s new global spending plan.
They add that PIF still plan to invest in Newcastle United and will not change their approach.
St James’ Park decision will cost PIF a lot of money
That is good news for Newcastle.
Financial rules have been the reason for a lack of spending on Tyneside, rather than a lack of desire from PIF.
They remain committed to the Newcastle United project, while Toon fans await the biggest decision since the change of ownership.
An update on the future of St James’ Park is expected in 2025, with PIF considering whether to build a new stadium.
A lot of fans would rather see St James’ Park be redeveloped and expanded. However, that will not be cheap. It has been reported that expanding St James’ Park could cost PIF £1billion.
Fortunately for Newcastle, that expansion still remains a possibility, with the Magpies unaffected by PIF’s new financial plan.
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