Newcastle United's staggering new value revealed after shock double exit & PIF investment
Mike Ashley sold Newcastle United for £300million in October 2021 - the club has since trebled in value
Newcastle United are now valued alongside European heavyweights at a staggering £1billion, according to reports.
It is almost three years since a Saudi-backed consortium bought the Magpies from Mike Ashley. The Public Investment Fund (PIF) acquired an 80 per cent stake, with the Reuben brothers and PCP Capital Partners, led by Amanda Staveley, equally dividing the remaining 20 per cent.
Staveley and her husband, Mehrdad Ghodoussi, diluted their shares before leaving completely earlier this month. PIF have enhanced their influence to 85 per cent, with the Reubens owning the rest.
An initial £300million deal to buy Newcastle has already paid dividends - with Bloomberg valuating the club at £1billion. That figure placed the Magpies in the same ballpark as Serie A giants AC Milan - sold two years ago for €1.2billion.
Newcastle made losses of around £155million over a three-year period before frantically selling Elliot Anderson and Yankuba Minteh last month. That is largely due to a £400million outlay on players since the takeover.
Lucrative sponsorship deals include a £40million per year Adidas partnership and the front-of-shirt agreement with Sela. That added a reported £25million per year to the coffers as Toon chiefs aim to grow the club commercially following years of stagnation.
Champions League qualification also boosted the Newcastle brand. Successes since Ashley’s exit have reportedly trebled the club’s worth - highlighting the Sports Direct tycoon’s missed opportunity during 14 years of ownership.