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PIF sports funding


johnny kayo said:
Its a tricky one, I was devastated when the Saudis took them over I thought they would turn them into a force but a billion spent and they’re still our bitches I wouldn’t mind them staying and continue to do nowt
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I was a bit like that when Ashley bought them, and thought they would go on a spending spree and win things. How wrong was I?😆
 
Woodman Boy said:
I was a bit like that when Ashley bought them, and thought they would go on a spending spree and win things. How wrong was I?😆
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They did go on a spending spree to be fair. I remember when Ashley gave McLaren summit like £130m to spend when these days that would be the equivalent of £250m but that was apparently money the club generated itself.

Now every penny they spend is “Saudi investment”

They have been completely done over

:lol:
 
Definitely Maybe said:
Said for ages the worst thing to happen to the Mags was Ronaldo falling out with Ten Hag. He became a free agent, nobody other than the Saudis could afford/wanted him and him going there led to thousands of kids walking around in snidey Al Nassr tops from DHGate. The following summer the PIF decided to plough money into the Saudi league - if you're going to throw money at football with the aim of increasing tourism into SA, why would you prioritise a non-elite club in North East England when you could bring aging superstars into your own country and draw international viewers onto the domestic league? They've barely given the Mags a second thought since.
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That's a good point and I hoyed this in a thread in another forum so will Thor it below with a bit more as I think it's a few things.

I've said #1 and #2 below a few times on here as I think that's one of the main factors that this is probably a failed project. The Saudis look at buying the mags way back in 2018 but since the takeover in 2021, things haven't gone to plan for the Saudis and Newcastle and it's clear they've reigned back on the initial investment.

1. Back in 2018, The European Super League was bubbling and no doubt behind the scenes some knew it would raise it's head at some point. If it happened then there was potentially £billions in revenue to be split between teams and Saudis will have wanted a seat at the table. They would have been guaranteed a place given the financial backing would have been there from PIF. The ESL died a death when the Champions League format changed and made it easier for top teams to progress to the knockout. They also brought in a "Value Pillar" to ensure top clubs get a bigger share of the prize money compared to team being in CL for the 1st time.

2. They thought they could pump money into the club ala Man City, albiet not as sneakily but UEFA/PL rules soon changed to hamper that. They also didn't take full advantage of that, possibly due to #1 above. They've self funded in a way with Sela and Noon so this isn't a return on investment, nor would a non related Saudi sponsor pay as much as they are.

3. Main priority targeted players didn't jump at the chance of 'the project' last season, even though they'd got Champions League for a 2nd time. How can they strengthen a squad to compete at the top when top players won't come? They can't even get them to come when offering higher wages as no doubt location is also an issue they face. The mags are still a stepping stone for players to go onto bigger and better things at top clubs like selling Isak and now having to sell some of their best players this coming summer. Last summer clearly showed that spending big money on players can be very costly and given their revenue they can't afford to buy duds like top teams can.

4. The stadium issue as it would cost huge money to build on top of the complications regarding location. It's also dragged on so long that would they really invest in it now given they're just another mid table team again? Spending £billions on a new stadium does mean guaranteed success, see Spurs failings in recent seasons as to why. The mags don't have the revenue to rebuild a squad like Spurs already do so they're forced to sell players to generate revenue, nor do the mags quite have the pull like Spurs do (even if they're a mess at the moment).

5. The global reach growth of Newcastle is still massively behind other top clubs in Europe and it would take years of success to close that, which isn't going to happen so they would never close that commercial/merchandise gap. They may think they're big but globally they will be nowhere near as millions turn on the TV to watch the top clubs and want to win the Premier League and Champions League. Unless they self fund certain sponsors/ads then they won't get the big money top clubs can demand as there simply isn't enough eyes on the club around the world.

Even so, I think the ESL was the biggest spanner in the works as that happened right at the start. If that had appeared then they'd be in the process of building a £2 billion stadium as a league with the biggest teams in Europe containing the best players in the world would have been massive. The money it could have generated would have been more than all the European Leagues TV money as globally it would have been massive, especially if available via subscription like Netflix. Given the lack of money coming in via 'legal' ways in recent times, after the initial splurge, it's as if the Saudis are making the club earn all the money, especially via the fans given the price of tickets and the constant merchandise being released.
 
Don’t want to spoil the party but could it be possible shutting down LIV is a big F U to a certain person who loves golf and has wrecked the Gulf?
 
ATTACK ATTACK ATTACK said:
That's a good point and I hoyed this in a thread in another forum so will Thor it below with a bit more as I think it's a few things.

I've said #1 and #2 below a few times on here as I think that's one of the main factors that this is probably a failed project. The Saudis look at buying the mags way back in 2018 but since the takeover in 2021, things haven't gone to plan for the Saudis and Newcastle and it's clear they've reigned back on the initial investment.

1. Back in 2018, The European Super League was bubbling and no doubt behind the scenes some knew it would raise it's head at some point. If it happened then there was potentially £billions in revenue to be split between teams and Saudis will have wanted a seat at the table. They would have been guaranteed a place given the financial backing would have been there from PIF. The ESL died a death when the Champions League format changed and made it easier for top teams to progress to the knockout. They also brought in a "Value Pillar" to ensure top clubs get a bigger share of the prize money compared to team being in CL for the 1st time.

2. They thought they could pump money into the club ala Man City, albiet not as sneakily but UEFA/PL rules soon changed to hamper that. They also didn't take full advantage of that, possibly due to #1 above. They've self funded in a way with Sela and Noon so this isn't a return on investment, nor would a non related Saudi sponsor pay as much as they are.

3. Main priority targeted players didn't jump at the chance of 'the project' last season, even though they'd got Champions League for a 2nd time. How can they strengthen a squad to compete at the top when top players won't come? They can't even get them to come when offering higher wages as no doubt location is also an issue they face. The mags are still a stepping stone for players to go onto bigger and better things at top clubs like selling Isak and now having to sell some of their best players this coming summer. Last summer clearly showed that spending big money on players can be very costly and given their revenue they can't afford to buy duds like top teams can.

4. The stadium issue as it would cost huge money to build on top of the complications regarding location. It's also dragged on so long that would they really invest in it now given they're just another mid table team again? Spending £billions on a new stadium does mean guaranteed success, see Spurs failings in recent seasons as to why. The mags don't have the revenue to rebuild a squad like Spurs already do so they're forced to sell players to generate revenue, nor do the mags quite have the pull like Spurs do (even if they're a mess at the moment).

5. The global reach growth of Newcastle is still massively behind other top clubs in Europe and it would take years of success to close that, which isn't going to happen so they would never close that commercial/merchandise gap. They may think they're big but globally they will be nowhere near as millions turn on the TV to watch the top clubs and want to win the Premier League and Champions League. Unless they self fund certain sponsors/ads then they won't get the big money top clubs can demand as there simply isn't enough eyes on the club around the world.

Even so, I think the ESL was the biggest spanner in the works as that happened right at the start. If that had appeared then they'd be in the process of building a £2 billion stadium as a league with the biggest teams in Europe containing the best players in the world would have been massive. The money it could have generated would have been more than all the European Leagues TV money as globally it would have been massive, especially if available via subscription like Netflix. Given the lack of money coming in via 'legal' ways in recent times, after the initial splurge, it's as if the Saudis are making the club earn all the money, especially via the fans given the price of tickets and the constant merchandise being released.
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Interesting read, thanks.
 
Good Teeth Keith said:
They were definitely expecting more than lower table and a load of complete whoppers as fans.

Can guarantee they see the average Newcastle fan as rodents.
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They see everyone as rodents tbf, disgusting family/government
KGC83 said:
5/6 times their money back? They bought the club on the cheap for around £300m, have put in another £600m and could probably sell for about £1bn.

This is why they don’t want to build a new training ground and stadium because they are refusing to fund it.

The sooner they accept it the better.
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Buy a sustainable well ran club then run it into the ground so much to the point you need to sell the stadium to avoid breaking finance rules due to losing money hand over fist then somehow moron willing to take it on for more than you paid? Hows that work then?
 
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