Newcastle owners PIF set to seal second major sports takeover in England amid £1bn reveal

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Newcastle United owners the Saudi Public Investment Fund look set to seal a second major sports takeover in England.

It has been almost three years since PIF bought Newcastle for £305m with promises to make the historic club one of the best in the world.

As well as ambition on the pitch, the new owners promised to invest heavily in both the infrastructure of the club and the surrounding area.

The sovereign wealth fund has committed to the regeneration of the city, similar to what has been seen in another post-industrial city in the North with owners from the Gulf.

Abu Dhabi United’s takeover of Man City has been the catalyst for huge investment in the city of Manchester from the United Arab Emirates.

The Saudis have already promised £3bn in funds for investment in the North East.

Now, it seems PIF are keen to deepen the roots that have grown from the seeds they have planted at St James’ Park.

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Newcastle owners PIF poised for second North East takeover

As has been the case in almost every imaginable sector, PIF have invested heavily in sports in recent years.

PIF either own or exert considerable influence on most of the teams in the Saudi Pro League, where billions have been spent on Hollywood signings.

That investment, along with the Newcastle project, is part of a wider footballing masterplan that will see the World Cup hosted in Saudi Arabia in 2034.

The group have also launched assaults on tennis and golf.

And now, it seems as though cricket might be next on the list.

As reported by The Times, PIF are ready to acquire a stake in a new Hundred cricket team based in Durham.

It is believed that the franchise could join the eight-team league in 2026 or 2027.

That news came in the same week that it emerged that Amanda Staveley’s sale of her 5.7 stake in Newcastle valued the club at £1bn.

That is more than treble what PIF paid for it back in 2021, and it is emblematic of the investment they have made – which is now being reflected in the North East as a whole.

TBR Analysis: How much can Newcastle spend this summer?

While Newcastle have had a ceiling placed on their ambition by Premier League Profit and Sustainability Rules, they have still spent heavily under PIF.

Speaking exclusively to TBR, Liverpool University football finance lecturer Kieran Maguire said that Newcastle will need to move to a player trading model.

That means selling off some of their more expensive assets in order to fund new signings – such as Newcastle’s pursuit of AC Milan centre-back Malick Thiaw.

However, their three-year PSR calculation no longer includes 2021-22, when they posted a £70m loss.

Therefore, they should have the flexibility to sign players as well as Lewis Hall and Odysseas Vlachodimos, who have already joined this summer.