RPT-EXCLUSIVE-Saudi PIF in talks with potential investors to fund Newcastle United plans, sources say

Saudi Arabia's ​sovereign wealth fund PIF is in talks with investors ​over them taking a minority stake in Newcastle ‌United ​as part of its fundraising plans for the Premier League club's stadium, three people familiar with the matter said. PIF, chaired by Saudi Crown Prince Mohammed bin Salman, is weighing up expanding ‌the club's current stadium or building a new one and could issue new shares to a prospective new backer of the plans, one of the people said.

Newcastle United CEO David Hopkinson told Reuters that the club was considering building a new stadium, while a renovation would cost ‌in the hundreds of millions of pounds. A new stadium could cost in excess of 1 billion pounds ($1.34 billion), said Hopkinson, who ‌referred questions about the talks involving PIF to the Saudi fund itself.

Saudi Arabia's PIF declined to comment. Another option to raise new funds includes a potential securitisation of Newcastle's commercial revenue, the person said, adding no decision has been made yet on the investment.

The club is also preparing to open a new multimillion-pound expansion of ⁠its training ​centre that will extend its ⁠footprint by more than 50%, Newcastle said last month. The discussions come after PIF said it would stop funding LIV Golf at the end of the 2026 ⁠season, after ploughing more than $5 billion on the venture since it launched in 2022. The almost $1 trillion wealth fund, the driving force behind Saudi Arabia's plan ​to cut its reliance on oil revenues, has made sports central to its strategy, with investments in Formula E, boxing, ⁠tennis and e-sports. The kingdom is also preparing to host the 2034 FIFA World Cup.

While committed to deploying capital internationally, PIF has retooled its strategy and is moving ⁠away ​from some investments, including scaling back so-called giga-projects in Saudi Arabia. Newcastle manager Eddie Howe said earlier this month that PIF remained as committed as ever to the club's success.

PIF led a 305 million pound takeover of Newcastle from British businessman Mike Ashley in ⁠2021. Newcastle have succeeded in their first few seasons under Saudi ownership, twice qualifying for the Champions League and winning the League ⁠Cup last year. However, they have ⁠slipped out of the spotlight this season and are 11th in the Premier League with one game remaining, with no hopes of qualifying for next season's European competitions.

($1 = 0.7448 pounds)

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