Newcastle are about to write a 'really big cheque' as £250m off-pitch target outlined

Newcastle United’s ambitions under the Saudi Public Investment Fund extend into every element of the club.

Commercially, Newcastle’s performance since PIF‘s takeover in October 2021 has been impressive, with income from sponsorship and merchandise sales rising from £21m to £47m.

What’s more, those figures are from the 2022-23 accounts, the last season for which financial data is available – when they release the 2023-24 accounts, Newcastle’s commercial income could hit £70m.

With TV income plateauing, Newcastle have seen commercial income the most efficient way to generate cash in the short term.

But for PIF to realise the full extent of their ambitions on Tyneside, longer-term investment is required.

Liverpool University football finance lecturer Kieran Maguire told TBR earlier this summer that Newcastle need to develop more of a player-trading focus, as opposed to being a destination club.

That might not sound particularly appealing for Newcastle fans desperate to see the club retain the likes of Alexander Isak, Bruno Guimaraes and Anthony Gordon, but it is the reality.

However, one growth area that supporters can get behind is the expansion of St James’ Park – and there have been new developments today.

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Big investment imminent as Newcastle target £250m PSR boost

Since PIF’s takeover, attendances at St James’ Park have soared.

As well as having one of the most passionate fanbases in the Premier League, they also have one with the potential to sell among the most tickets.

At 52,000, the club have headroom to expand St James’ Park but are limited by planning and architectural concerns.

Newcastle have commissioned a St James’ Park feasibility study about the possibility of either expanding the stadium or moving to a new site altogether.

Now, in an interview with iNews, Newcastle chief operating officer Brad Miller has now insisted that the owners are ready to writer a “really big cheque” once the study is complete.

As well as exploring the club’s commercial strategy and what might be possible at an expanded St James’ Park, the interview also disclosed that Newcastle plan to double revenue every two years.

At the last count (2022-23), Newcastle’s annual revenue was £250m, meaning they will hope to generate an additional £250m turnover over the next two seasons.

How much cash can St James’ Park expansion generate?

As the cost of expanding St James’ Park is PSR-deductible and the Saudis will be willing to spend whatever it takes to deliver the best, redeveloping the stadium is all upside for Newcastle.

If Newcastle added, say, 13,000 seats to take capacity to 65,000, a crude calculation based on their 2022-23 matchday income would show that they can generate £47.5m per year in matchday income.

However, given the recent increase in prices, the likely emphasis on hospitality, and other in-stadium revenue opportunities, the true figure may be close to £70m.

A naming rights deal, perhaps with a company in PIF’s portfolio, could further bump up that figure.

And the general commercial appeal of the club would increase at a shiny new stadium, as would what the Premier League deem fair market value when it comes to deals with PIF-owned companies.