By David Hellier
(Bloomberg) — Newcastle United is now valued at over 1 billion pounds ($1.3 billion) after its Saudi owners increased their stake by buying out former owner Amanda Staveley’s share, people familiar with the situation say.
The Saudi Public Investment Fund bought an 80 percent stake in the Premier League team from British businessman Mike Ashley in October 2021, paying around £305 million for it. The other 20 percent was originally split between London-based property developers Reuben Brothers and Staveley and her husband Mehrdad Ghodoussi.
PIF has invested a further £260m since the takeover, said the people, who asked not to be identified to discuss confidential information. Under the new ownership, Newcastle qualified for the UEFA Champions League for the first time in 20 years and reached the Carabao Cup final at Wembley. Last season, the club disappointed by missing out on European qualification after finishing seventh in the Premier League.
Staveley’s 6 percent stake in the club is expected to fetch around £60 million. The original 10 percent stake in the team has been diluted by the capital injections from PIF, the people said. Staveley is also battling a bankruptcy suit filed by Greek shipping magnate Victor Restis, who won a £3.4 million case in Britain this year over a 2008 investment. Staveley has appealed the ruling.
Newcastle’s current valuation is roughly the same as that of seven-time European champions AC Milan, which was sold by Elliott Management to RedBird Capital Partners for $1.3 billion in 2022.
As Bloomberg previously reported, Staveley is said to have raised £500 million for a fund to invest in another football team, with Tottenham Hotspur among her potential targets.
Newcastle chairman Darren Eales recently told the club’s television channel that revenues had risen to over £300 million.
“Sales have increased, which is incredible,” he said. “But we’re still behind the big six, so we know that how we use our resources is really important if we want to remain competitive and live beyond our means.”
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