Are PIF Still Totally Committed To Newcastle United?

In an unusually blunt comment on matters outside of his squad management role Eddie Howe said he believes SJP redevelopment or a new stadium won't take place while he is manager.

If Eddie remains our manager that means he thinks a new stadium could be years away.

Eddie could have just batted the subject away with a bland answer - so how telling is his comment and does it imply he has doubts about PIF's future ambition and commitment?

My take on PIF...

They bought us for three reasons...

One; they wanted to own a club in the Premier League as part of the grand Saudi plan of being a dominating presence in world sport.

Two: they saw an opportunity to awaken a sleeping giant with fanatical support at a price that was way below what they would have had to pay for an established elite club.

Three; they believed that their investment could make NUFC serious challengers for the title and CL winners within 5-7 years. Ultimately, that is why they bought us.

That third reason is now the one under scrutiny. Is that still their ambition?

To achieve those ambitions means challenging and competing with Man City, Arsenal and Liverpool in the Prem - and Real Madrid, Barcelona, Bayern and PSG in the CL.

That will take massive investment in players and wages and PIF will have wanted a big proportion of that to be self funding from increased sponsorship and revenue.

Therein lies what could be the stumbling block.

The Premier League and big 6 did not want, and were worried to the core, about PIF buying Newcastle United.

The reason was financial and self protection.

With only four clubs guaranteed to be in the CL - and the big 6 taking on big debt to qualify - a massively funded NUFC muscling their way into the top 4 would mean that half of the big 6 wouldn't qualify for the riches of the CL each season.

Conspiracy was rife as the Prem in collusion with the big 6 blocked the takeover and it was only when Ashley relentlessly gathered the evidence that would have humiliated the Prem in Court that the takeover was waved through.

But... the Prem and big 6 weren't finished with their trickery.

Out of thin air they pulled their rabbit out of the hat.

That rabbit was the Associated Party Transaction (APT) rules that prevented clubs from inflating commercial revenues through deals with companies linked to their owners. 

In one fell swoop the Prem removed a financial pipeline that had previously been exploited by the owners of the big 6 and effectively robbed PIF, their associated companies and NUFC of the same sponsorship opportunities.

PIF were now totally tied to PSR rules and bound by the limitations of the income and expenditure regime that existed under Ashley.

Those rules led, amongst other outcomes, to the sale of Minteh and Anderson two players who are now collectively worth over £100M more than the fees we received.

From the 2026/27 season PSR is being replaced with SCR (Squad Cost Ratio) rules that cap clubs' on-pitch spending (wages, transfers, agents' fees) at 85% of their football revenue.

However the reality is that our revenues are still way behind the big 6 and PIF are unable to flex their financial muscle as forcefully and as quickly as they had originally planned.

PIF, like us fans, have also had to face the reality shown by the summer transfer window that the top targets we wanted - the players who could have taken us up another level - have spurned us for the traditional top 6.

How significant is the stadium delay? Should we be concerned?

Nothing stays the same in life or business and the playing field has literally changed since PIF bought NUFC.

Their financial wings have been clipped big time by the new rules and you can bet that whatever investment plan they had on day one of the takeover has been binned.

In any new venture there is always massive enthusiasm, ambitious goals are set and exciting plans announced. One of those was an expanded SJP or new stadium.

Now that part of the plan, according to Eddie Howe, is unlikely to happen for years.

Have PIF got cold feet? Have the financial rules become too much of a burden?

Is the stadium delay a sign that their ambition and commitment is wavering?

What do you think?

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