Three people familiar with the matter revealed that PIF, the Saudi sovereign wealth fund chaired by Crown Prince Mohammed bin Salman, is in talks with investors over them taking a minority stake in Premier League club Newcastle United. PIF is considering either expanding the club's current stadium or building a new one, potentially using issuance of new shares to a new backer. Newcastle United CEO David Hopkinson mentioned considering building a new stadium, estimating the cost to be over 1 billion pounds. A potential securitisation of the club's commercial revenue is also being explored for raising new funds. The discussions come after PIF terminated its funding agreement for LIV Golf in 2026.
Soccer Football - Premier League - Newcastle United v AFC Bournemouth - St James' Park , Newcastle, Britain - February 17, 2024 General view of a Newcastle United corner flag inside the stadium before the match Action Images via Reuters/Lee Smith/ File Photo LONDON/DUBAI, May 18 - Saudi Arabia 's sovereign wealth fund PIF is in talks with investors over them taking a minority stake in Newcastle United as part of its fundraising plans for the Premier League club's stadium, three people familiar with the matter said.
PIF, chaired by Saudi Crown Prince Mohammed bin Salman, is weighing up expanding the club's current stadium or building a new one and could issue new shares to a prospective new backer of the plans, one of the people said. Newcastle United CEO David Hopkinson told Reuters that the club was considering building a new stadium, while a renovation would cost in the hundreds of millions of pounds.
A new stadium could cost in excess of 1 billion pounds , said Hopkinson, who referred questions about the talks involving PIF to the Saudi fund itself. Another option to raise new funds includes a potential securitisation of Newcastle's commercial revenue, the person said, adding no decision has been made yet on the investment.
The club is also preparing to open a new multimillion-pound expansion of its training centre that will extend its footprint by more than 50%, Newcastle said last month. The discussions come after PIF said it would stop funding LIV Golf at the end of the 2026 season, after ploughing more than $5 billion on the venture since it launched in 2022.
The almost $1 trillion wealth fund, the driving force behind Saudi Arabia's plan to cut its reliance on oil revenues, has made sports central to its strategy, with investments in Formula E, boxing, tennis and e-sports. The kingdom is also preparing to host the 2034 FIFA World Cup. While committed to deploying capital internationally, PIF has retooled its strategy and is moving away from some investments, including scaling back so-called giga-projects in Saudi Arabia.
Newcastle manager Eddie Howe said earlier this month that PIF remained as committed as ever to the club's success. Newcastle havesucceeded in their first few seasons under Saudi ownership, twice qualifying for the Champions League and winning the League Cup last year.
However, they haveslipped out of the spotlight this season and are 11th in the Premier League with one game remaining, with no hopes of qualifying for next season's European competitions.
Soccer Football Premier League Newcastle United V AFC Bournemouth AFC Bournemouth St James' Park Saudi Arabia Sovereign Wealth Fund Saudis Football Stadium Football League Soccer League PIF Saudi Crown Prince Mohammed Bin Salman Investors Newcastle United CEO David Hopkinson Expansion Stadium Commercial Revenue Football Club Saudi Vision 2030 Oil Revenues FIFA World Cup Saudi Arabia Football
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
West Ham United endure shambolic finish as Newcastle United secure victory, increasing pressure on relegation-threatened London sideDespite training all week to win, West Ham United were thoroughly dominated by Newcastle United. In the end, Newcastle United were able to score a total of three goals and beat West Ham United 3-1.
Read more »
More mega and cultural events to attract touristsNEWCASTLE, England, May 17 (Reuters) - Newcastle United forward William Osula scored twice as his side beat West Ham United 3-1 at St James' Park on Sunday to leave the Londoners perilously close to relegation from the Premier League after another shambolic display.
Read more »
Education outpacing jobsNEWCASTLE, England, May 17 (Reuters) - Newcastle United forward William Osula scored twice as his side beat West Ham United 3-1 at St James' Park on Sunday to leave the Londoners perilously close to relegation from the Premier League after another shambolic display.
Read more »
West Ham near relegation after Newcastle defeat, Man United beat Forest as Fernandes equals assist recordWest Ham on brink of relegation after loss to NewcastleFernandes reaches 20 assists as United beat ForestBrighton stumble in bid to seal European placeSunderland beat Everton to...
Read more »