Newcastle sells St. James’ Park to itself to avoid losses.

The owners of Newcastle, in a bold move, sold the iconic St. James’ Park stadium to a holding company that is, in fact, owned by themselves. This transaction, which did not receive formal disclosure, was revealed in a recently published financial report from the English club and took place in June of last year, just before the end of the club’s financial year.

The sale of the stadium, valued at an impressive £172.1 million (approximately €198 million), was conducted by the Public Investment Fund (PIF) of Saudi Arabia to PZ Newco Holdings Limited, a subsidiary operated by the same fund in the UK. This strategic maneuver was crucial in preventing Newcastle’s losses from reaching astronomical figures, which could have hit £100 million (around €87 million), a concerning record for the institution and a result of massive investment in the team and infrastructure, which has not yet translated into success in competitions.

Despite the financial difficulties, Newcastle, which came under the control of the Saudi state fund in 2021, had a memorable year, winning its first trophy in decades by clinching the League Cup, overcoming English champions Liverpool in the final. The club’s chief executive, David Hopkinson, highlighted that Newcastle’s revenues were significant, partly due to the sale of player Aleksander Isak, reflecting a “strong progress for the club both on and off the pitch.”

In addition to financial movements, Newcastle’s sports scene has been marked by challenges. Jack Colback, one of the team’s players, revealed that the strong personality of the Spanish coach has had a significant impact, leading some athletes to feel like ‘victims’ of this dynamic. In a broader context, the trio from the podcast ‘The Rest Is Football’ does not consider Newcastle among the favorites, but acknowledges that figures like Cristiano Ronaldo can make a difference in critical situations.

Although the financial battle has been won with the sale of the stadium, the fight for sporting supremacy continues. Newcastle’s future now depends on skilled management that not only stabilizes its finances but also solidifies the club’s position among the giants of European football, in pursuit of titles that its glorious past demands.

This article first appeared on Apito Final.