Newcastle United stadium decision hits setback after controversial PIF update
Newcastle United’s stadium decision looks set to be pushed back until next year.
A decision on St James' Park’s future will reportedly be pushed back until 2026 despite initial promises.
Newcastle United promised fans a decision in “early 2025” last year. Brad Miller, the club’s Chief Operating Officer and head honcho behind the stadium project, also insisted the chequebook would only come out once.
Supporters have debated St James’ Park since the Saudi-backed takeover four years ago. Traditionalists believe tearing down the iconic, 144-year-old ground would be sacrilege.
Others highlight the need to propel Newcastle into the modern era with a state-of-the-art, multi-purpose venue. Clubs like Manchester City, Arsenal, Tottenham Hotspur and Everton have all moved stadiums since the turn of the century.
St James' Park decision delayed
The Telegraph claim Newcastle will not confirm a stadium proposal this year. That would contradict the message sent to supporters 12 months ago.
Fans have been on tenterhooks all year despite it being common knowledge that a new ground is the owners’ preference. Relocating to the adjacent Leazes Park, however, also proves a logistical nightmare given its protected status.
The option of an expansion has not been ruled out completely. As well as the stadium, Toon chief Miller is also exploring options for a new training ground.
PIF will not fully fund stadium
Last month, the Daily Mail reported PIF and the Reubens - who own 15 per cent - will not fully finance a new stadium. It is claimed that any rebuild would be half-funded by the owners, with the rest leveraged against the club as a loan.
For example, Tottenham Hotspur borrowed £637million from Goldman Sachs, Bank of America Merrill Lynch and HSBC to bankroll their state-of-the-art stadium. The plan would see Newcastle’s new home effectively fund itself as a multi-purpose venue.
Newcastle United plunged into debt?
While not the same as the Glazers’ controversial takeover of Manchester United, the leveraged nature of the plans draws parallels. Newcastle would be plunged into enormous debt overnight - a possible hindrance in the transfer market.
Expenditure on infrastructure does not affect the PSR balance sheet - which makes these fresh revelations surprising. But the piece notes how PIF are not Newcastle’s “sugar daddy” and, ultimately, view the club as a long-term investment.