Newcastle United’s majority shareholder Saudi Arabia’s Public Investment Fund (PIF) is reportedly seeking to acquire InfraBridge’s 49% stake in Newcastle Airport the times.
The airport is reportedly worth £1bn, with seven local authorities holding a 51% controlling stake.
Newcastle United revived under Saudi PIF
Newcastle United’s majority shareholder, the Saudi Public Investment Fund (PIF), is one of the world’s largest sovereign wealth funds, with assets of more than $700 billion. The PIF was established to diversify Saudi Arabia’s economy away from oil dependence and make strategic investments globally in a variety of industries, including technology, real estate and sports.
In 2021, PIF acquired 80% of Newcastle United as part of a consortium with the goal of transforming the club into a competitive powerhouse.
Newcastle United have seen a huge transformation on and off the pitch following their takeover by PIF. The club has gone from the brink of relegation to a force in the Premier League and European football. Backed by spending of more than €450 million over six transfer windows, Newcastle have brought in top talent such as Alexander Isak, Bruno Guimarães and Sven Botman.
The investment paid off, with head coach Eddie Howe leading the team to fourth place in the Premier League and qualifying for the Champions League in the 2022/23 season.
Strict FFP and PSR rules do not allow the club to splash out cash and compete against top rivals, sparking rumors that the owners may consider pulling out of the project, but recent developments suggest this is not the case.
Newcastle plan to upgrade club’s existing training facilities
Not only have they purchased more land in Newcastle, they have also made significant investments in the city and plan to upgrade the club’s existing training facilities with a new state-of-the-art training centre.
A recent report confirmed that the Tyneside club are looking to expand Darsley Park to bring it in line with the Premier League’s elite clubs, with the Magpies continuing to close the gap bit by bit.
For Newcastle United, this latest development will be a boost as it is a reassuring sign that the owners intend to continue to fully invest in the club’s future. The potential airport stake purchase, coupled with continued investment in the club and city, reinforces the notion that Saudi-backed projects are far from slowing down.
