Newcastle owners PIF to cut spending after Amanda Staveley exit as £255m budget revealed

Newcastle United owners the Saudi Public Investment Fund are set to cut their investment in football.

PIF have been hamstrung by the Premier League’s Profit and Sustainability Rules (PSR) in their mission to make Newcastle one of the biggest clubs in world football since their takeover in 2021.

Despite overachieving in their first season under Saudi ownership and qualifying for the Champions League, the club still found themselves scrambling to make sales ahead of the 30th June PSR deadline.

Meanwhile, football finance expert Kieran Maguire exclusively told TBR last week that upcoming changes to the PSR system would limit Newcastle to spending £255m on wages and transfers.

For context, their wage bill alone was £187m in 2022-23 and will have risen by 15-20 per cent following their qualification for Europe’s premier club competition.

Now, the architect of their PSR compliance strategy Amanda Staveley is leaving St James’ Park, creating uncertainty around the future direction of the club.

And the latest developments in the Middle East could also be bad news for Newcastle fans wanting to see their clubs flex their financial muscles in the transfer market.

PIF to scale back domestic spending

The Saudi Pro League, the majority of whose clubs are owned and operated by PIF, has spent billions on high-profile transfers in the last 12 months.

The level of spending that brought the likes of Neymar and Cristiano Ronaldo to the league is exactly what they would love to do on Tyneside if it were not for PSR.

However, a report from industry experts AGBI suggests that PIF will slow their spending on their domestic football operation in response to economic downturn in the country.

PIF also announced earlier this month that they would privatise eight football clubs, further indicating that they are perhaps considering taking a more measured approach.

The analysis suggests that, even with a Saudi-hosted World Cup also on the horizon, PIF will not spare football from the cuts it is making across the board.

Potentially, that could have an impact on Newcastle.

READ MORE NEWCASTLE FINANCE NEWS: Newcastle eyeing £165m bonanza amid bold prediction from exit-bound Amanda Staveley

TBR Analysis: How will PIF’s economic plans affect Newcastle?

While the Public Investment Fund’s spending clearly indicates their commitment to enhancing their domestic league, Newcastle are still the crown jewel.

This latest projection about the deceleration of the spending in the Pro League is not likely to have a direct impact on the club therefore, although there could be indirect consequences.

For one, it could make PSR-busting sales to Pro League sides less likely.

It might also limit the commercial opportunities in the Gulf state, which Newcastle have taken advantage of to great effect in PIF’s three years at the club.