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3 months ago
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It has today been reported that Newcastle United are now valued at more than £1billion.
The report comes from Bloomberg (see below).
This comes after a remarkable recovery by the new/current Newcastle United owners breathing new life into the club, after it ended up in what appeared terminal decline under a decade and a half of Mike Ashley ownership.
Eddie Howe has been key to the improvement on AND off the pitch, as this new report on the club’s valuation points to.
Bloomberg reporting that this £1billion+ valuation puts Newcastle United on a similar valuation/footing as AC Milan which was sold for $1.3billion (approx £1.09billion at today’s exchange rates) in 2022.
Bloomberg report on Newcastle United valuation – 29 July 2024:
‘Newcastle United is now valued at over £1 billion ($1.3 billion), after its Saudi owners increased its holding by buying former owner Amanda Staveley’s stake, according to people familiar with the situation.
The current valuation of Newcastle puts the team at roughly the same valuation as seven-time European winner AC Milan, which was sold by Elliott Management Corp. in 2022 to Redbird Capital Partners for $1.3 billion.
Newcastle’s Chief Executive Officer Darren Eales recently told the club’s TV station that revenues have soared north of £300 million.
“The revenues have been rising and it’s incredible to see… but we’re still behind the big six so we know that if we’re going to be competing and punching above our weight, how we use our resources is really important.”
Whilst £305m was paid to Mike Ashley back in October 2021, the Newcastle United owners have six times (see below) injected cash into the club, since then.
This is nothing unusual with a football club, indeed any business, which has been starved of proper investment and left a virtual shell by the original owner of 14+ years. Money needed to be spent after takeover to get Newcastle United back on its feet and be successful on and off the pitch, the idea of course is that in the future the owners will reap the rewards, with a far more valuable business/football club.
The £305m paid to Mike Ashley on 7 October 2021, has been followed by these six cash injections by the new/current owners totalling £302.9m, almost as much as the original purchase price. This takes the overall investment in the club to £607.9m.
The breakdown of where this £607.9m figure comes from:
7 October 2021 – £305m – This is the amount of money the new Newcastle United owners paid to Mike Ashley.
9 November 2021 – £38.5m – This additional amount of money was invested into the club by the new Newcastle United owners.
24 January 2022 – £40.0m – This additional amount of money was invested into the club by the new Newcastle United owners.
26 October 2022 – £70.4m – This additional amount of money was invested into the club by the Newcastle United owners.
10 February 2023 – £57.0m – This additional amount of money was invested into the club by the Newcastle United owners
22 August 2023 – £60.0m – This additional amount of money was invested into the club by the Newcastle United owners.
28 March 2024 – £37.0m – This additional amount of money was invested into the club by the Newcastle United owners.
Whilst countless lazy media have claimed the only reason for buying Newcastle United was allegedly ‘sportswashing’, the reality is that as they and the Reuben family have indicated, it was a brilliant investment opportunity at what could be a seriously successful business/football club that had been run into the ground.
With at least £607.9m already invested in their asset, it is no surprise if indeed the Newcastle United owners are already sitting on a business now worth well over £1billion.
You just need to look at what other major Premier League clubs have been sold for an/or are valued at, to see what the potential is at Newcastle United.
If the Saudi Arabia PIF and Reuben family get it right, with success on and off the pitch their investment will end up valued many time worth what they have put in.

 
