PIF could go one better than Man United and pay £2bn upfront to imitate 90,000 stadium at Newcastle United

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Newcastle United are just weeks away from announcing the future plans for St James’ Park and a potential new stadium.

After conducting a two-year feasibility study and several fan surveys, Newcastle United are now in the final stages of their decision process around stadium plans.

Three options are on the table. Expanding St James’ Park will cost up to £1bn but would increase St James’ Park capacity to 65,000. Alternatively, Newcastle could build a £2-3bn new stadium which could increase capacity as high as 70,000.

PIF are considering a third extreme stadium option which involves demolishing St James’ Park and building a new state-of-the-art venue on the same location.

The final decision is expected to be made official soon, but one question remains – how will Newcastle pay for their stadium project?

PIF save Newcastle from Man United stadium problem

Newcastle are not the only Premier League side currently looking at a new stadium. Everton’s new Bramley Moore Dock stadium is nearing completion, while Manchester United are considering a new 100,000 capacity venue.

One major issue the Red Devils are facing is funding for their project. Manchester United could pursue help to fund their stadium project from sources such as sponsors or even the government.

In terms of Newcastle’s stadium plan, journalist Ben Jacobs is confident that it will be funded entirely by PIF.

“It feels to me like Man United need backing – government support, logistical support and potentially even financial support,” Jacobs said via the NUFC Matters YouTube channel.

“With Newcastle, the Reuben brothers are the experts at this and PIF will be happy to flex for the first time and fund anything that Newcastle do with St James’ Park.

“Therefore I sense that Newcastgle’s venture into redevelopment or potentially a new stadium will be very much privatised, driven in-house and funded without any issues.”

Jacobs goes on to suggest that Newcastle’s new stadium could be a “Northern version of Wembley”.

While Newcastle’s new-build likely won’t match Wembley’s 90,000-capacity, it would open up opportunities for the club to host international matches as well as other sporting and non-sporting events.

Finance expert explains PIF’s plan to fund Newcastle stadium

Geordie Boot Boys have spoken exclusively to football finance expert Adam Williams, who explained that PIF already have a suitable plan to fund Newcastle’s project.

PIF have already injected £338m into the club through share issues, and they would be allowed to fund the stadium without it impacting the club’s PSR situation.

Williams said: “PIF have £750bn worth of assets under management but that doesn’t necessarily mean they just have £2bn in cash lying about unaccounted for.

“They have huge cash reserves, yes, but most of that is set aside to hit existing investment targets.

“We have seen them inject cash into the club via equity, but £1-2bn for a stadium is a different weight class and would probably require some sort of financing agreement.

“Earlier this month, they raised about £5.5bn from a Shariah-compliant method of finance called Murabha which they will pay off over time.

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“I’d imagine that funding for the stadium will come from this sort of syndicated source.

“However, from Newcastle’s perspective, PIF are going to get very, very favourable margins, so the burden on the club in terms of PSR will be negligible and be offset a hundred times over by the PSR benefits the stadium would bring.

“The question for PIF is, if they are serious about treating Newcastle as just another business asset that they eventually want a return on, how effectively does spending £1-2bn on a stadium deliver that?”