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3 months ago
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In 33 days time, Newcastle United meet Tottenham in their third Premier League fixture of the season.
Newcastle fans hoping to see Eddie Howe carry on his St James’ Park form against the North London club, 6-1 and 4-0 these past two seasons in the same fixture.
However, an interesting off the pitch story ahead of that match.
Well actually two stories in the media which can be very much linked.
On Monday, Bloomberg ran a report (see below) that informed us that Newcastle United now had a valuation of more than £1billion.
Some people cast doubt on that valuation, with the new/current Newcastle United owners having taken over a shambles from Mike Ashley back in October 2021.
However, as we pointed out on The Mag, you only have to look around at some of the valuations on other Premier League clubs, to see that a current £1billion+ valuation on Newcastle United is anything but a fantasy AND that there is enormous scope for that figure to go far far higher, if NUFC ends up successful on and off the pitch.
This point perfectly backed up this Tottenham story now also reported, a minority stake in Spurs seemingly set to be sold AND that could see Tottenham then valued at around the £3.75billion mark.
The Times report on Tottenham potential minority stake sale:
‘Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club.
Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale.
Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium.
The development of its 62,850-capacity stadium has greatly enhanced Tottenham’s attractiveness to potential investors. As well as bringing in annual gate receipts of £117 million, the ground has hosted concerts by several top music stars including Beyoncé and Travis Scott, as well as NFL matches.
The stadium’s development has saddled the club with £851 million of debt, albeit mostly fixed at rates of 2.79 per cent.’
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.

 
