Newcastle United PIF owners see value spike following £127bn move

Newcastle United's majority owners have seen a massive increase in fortune as its assets value spikes 21% to £735bn.

According to Forbes, the Saudi Public Investment Fund transferred an 8% stake in the state-run energy and chemicals company Aramco last week to boost the fund's financial resources. The stake is thought to be worth £127bn.

PIF own 80% of Newcastle United after its £305m takeover of the club from Mike Ashley in 2021.

The latest injection into the fund sees PIF climb to become the fifth-largest sovereign wealth fund in the world. But last year it was the world's leading wealth fund in spending and the world's biggest investor, having invested over £24.8bn in 2023- an increase of 33% from the previous year.

But despite having so much at its disposal, PIF is unable to pump more money into Newcastle United thanks to the Premier League's Profitability and Sustainability Rules (PSR).

Under current PSR, English top-flight clubs are permitted to lose a maximum of £105million over a rolling three-year reporting cycle, a figure co-owner Amanda Staveley admits it is "very limiting" after the Magpies were unable to make a permanent transfer in January.

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PSR has never been more scrutinised and that led to all 20 clubs meeting in London on February 6 to discuss potential changes. Premier League CEO Richard Masters previously stated PSR could soon change and align with UEFA regulations.

Speaking at the Bloomberg Power Players' summit in Jeddah, Staveley said: "We all have to do more to make sure we grow our revenues. There has been much more of a focus from the Premier League owners to make sure we grow our commercial revenues and our media, as a product, should be much more aggressive.

"There is a regulator coming in and there's much more of a focus on sustainability. Sometimes, when you over-regulate, you can slow growth and we have to make sure that we get the right balance between the right regulatory environment, the right rules and the right Financial Fair Play rules that promote growth. That's the only way you're going to get great football.

"One thing about the last few seasons in the Premier League is any club can win any game, and that's good. That means you get some incredibly exciting football...it's a difficult time because there has been so much focus on sustainability that people have actually forgotten that we're providing entertainment and we have got to grow this business.

"Football is difficult. You have very limiting Financial Fair Play rules. You have so many rules and restrictions about player purchases so it really does probably need some fresh thinking."