The Saudi Arabia-led owners of Newcastle United have injected a further £70mn into the English Premier League club, taking their total investment to nearly half a billion pounds.
Saudi Arabia’s Public Investment Fund, British financier Amanda Staveley’s PCP Capital Partners, and the British billionaire Reuben brothers confirmed the additional equity investment in a statement.
The capital injection brings their total investment, including the acquisition price and two subsequent fundraisings, to north of £450mn. The cash follows upgrades to the club’s training facilities as it seeks to catch up with more successful rivals and qualify for the Champions League, a top-tier European competition, next year.
Newcastle chief executive Darren Eales said the club was conscious of the need to “develop the whole business” and the playing squad while “adhering to” the sport’s financial regulations.
“We are at the beginning of a long-term plan that aims to build a club that can compete consistently at the highest levels of English and European football,” said Eales. “This additional investment further enables us to continue implementing the business plan.”
The club said that “further investment is expected”, reflecting the owners’ “long-term commitments” to Newcastle United. It said the fundraising followed improvements to the club’s home ground, St James’s Park, the addition of new executives and players. It was previously owned by sportswear tycoon Mike Ashley.
Investor appetite for Premier League clubs was underlined by the £2.5bn acquisition of Chelsea FC by US financier Todd Boehly and private equity firm Clearlake Capital this year. Meanwhile, John Henry’s Fenway Sports Group is in the early stages of exploring the sale of Liverpool FC, the only team to break Manchester City’s grip on the title since 2017-18.
Led by PIF, the shareholders completed the £305mn Newcastle takeover in October 2021. The deal was approved despite resistance from rival clubs concerned about state-backed clubs. Manchester City, owned by Sheikh Mansour bin Zayed al-Nahyan, a billionaire member of the Abu Dhabi ruling family, has dominated the Premier League in recent years.
The Newcastle takeover went ahead after a protracted approval process by the Premier League after Saudi Arabia resolved a dispute with Qatar-based broadcaster beIN Sports over television piracy. The Premier League also said it had received “legally binding assurances” that the Kingdom of Saudi Arabia would not control the club. PIF is chaired by Saudi Crown Prince Mohammed bin Salman.
Led by coach Eddie Howe, Newcastle has soared to third place in the league after playing 14 matches, putting the club in the qualification places for the Uefa Champions League.