Revealed: PIF’s £1bn plan for 70,000-seat Newcastle United stadium raises unexpected PSR concerns

The way that the Saudi Public Investment Fund plan to pay for a new stadium next to St James’ Park is set to dispel a common myth about the Newcastle United owners.

PIF have owned Newcastle for almost exactly four years now, and the Magpies have taken a quantum leap forward in that time, twice qualifying for the Champions League and winning the League Cup.

Eddie Howe’s side began the defence of their first silverware since 1955 last night with a 4-1 win over Bradford City at St James’ Park, where the official attendance was 51,249.

Even allowing for the 5,000 away fans who had made the trip from West Yorkshire, that’s a monumental turnout for a televised midweek game in the least prestigious of England’s elite competitions.

Newcastle are one of just a handful of teams able to attract and accommodate that number of paying fans – and the demand for tickets has been illustrated with several recent dramas over unauthorised reselling.

That is why, since the moment PIF crossed the Tyne Bridge back in October 2021, Newcastle have planned to build a new stadium or significantly expand and improve St James’ Park.

But there have been very few updates in recent months. And as the club is desperate to inflate revenues in order to carve out more PSR headroom, the Toon Army are growing restless.

However, it appears that the Saudi delegation on Tyneside are, at long last, making some progress.

Newcastle United seeking £1bn in stadium finance – but debt plan speaks volumes about PIF’s strategy

Newcastle are believed to be targeting a capacity of 65,000, though 70,000 has been mooted too.

At the upper end of that range, that would give Newcastle the third-biggest club stadium in English football. It would also supersize annual matchday income, which was £50m at the last count.