Newcastle update today: Stefan Borson rails against 'dumb Saudi money' theory

Newcastle United should be wary of following in Everton’s footsteps after the potential costs of their stadium redevelopment have been revealed.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider the stadium project has to make financial sense for the north-east giants because their Saudi owners will want to see a return on any potential investment.

Plans for leaving St James’ Park, which has been the club’s home since 1892, were discussed by the Newcastle United Fan Advisory Board on 30 September.

The Tyneside club’s chief operating officer Brad Miller said they need to “understand alternative options” as part of the stadium feasibility process.

The study has entered its second phase, with more detailed analysis taking place to investigate project-related risks and opportunities before a decision stage begins in early 2025.

The Telegraph reported on 1 October Eddie Howe’s side will be left with a £1billion bill if they decide to push ahead with a proposal to expand St James’ Park’s capacity from 52,000 to more than 60,000.

Newcastle could face financing issues in new stadium project

But Borson believes the problems Everton have faced building their new stadium, which is set to cost in excess of £800million, should be a cautionary tale for Newcastle.

He told Football Insider: “From an infrastructure perspective and a cost-base perspective, it’s going to be an issue because you have got to fund the stadium.

“It might be slightly different for Newcastle because the stadium will be outside of the PSR perimeter and it may well be that the owners just see this as an opportunity to build whatever and spend whatever.

“But the idea that the Saudi money is going to be dumb money I think is misplaced.

“I think they are going to want at least a return, even if they are prepared to spend a bit more than some of the clubs who may need to get third-party funding for a project of that scale.

“It’s the same with all of these projects. It’s the same with the Leeds project and all the new stadia projects.

“It’s got to make financial sense, otherwise, why would a club do it?

“It’s very nice to have a brand-new shiny stadium, but not if it costs £1billion.

“We know the problems that has caused for Everton over the last few years.

“Every other club should see that as a cautionary tale.”

In other news, significant Liverpool update as mega Anthony Gordon deal agreed.

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