Exclusive: Newcastle could close Premier League financial gap after stadium update
Newcastle United could close the financial gap on the top Premier League clubs by executing their plans to build a new stadium, sources have told Football Insider.
The Tyneside club have been considering plans to either build a new facility or expand St James’ Park, which has been their home since 1892.
The Telegraph reported on 4 February the Newcastle board are understood to be on the verge of recommending the construction of a new £1.2billion stadium as the best option to their Saudi Arabian owners.
The proposal would see the development overlap the current Leazes Stand and have a capacity of just under 70,000, making it significantly bigger than the 52,000 St James’ Park holds.
The Saudi Public Investment Fund (PIF) will make the final decision on the project, with the stadium expansion option expected to cost around half of the new stadium plans.
Newcastle have struggled to comply with the Premier League’s financial rules since PIF secured its £305million takeover in 2021.
Sources have told Football Insider the north-east giants could significantly increase their commercial and matchday revenue to rival some of the top Premier League clubs on a consistent basis if they were to build a new stadium.
Newcastle need £500m+ revenue to match Man City
Football Insider revealed on 8 January Newcastle’s revenue surpassed £300million for the first time last season.
That was backed up by the figures in Deloitte’s 2025 Money League, which showed the club’s turnover increased from £250m to £316million in 2023-24.
Their commercial revenue surged from £47million to £77million across the same period, while their matchday income at St James’ Park grew from £38million to £58million.
The wage bill also rose from £187million to £215million last season, with Eddie Howe’s side competing in the Champions League.
The Tynesiders remain significantly down on Manchester City’s numbers after the English champions posted a Premier League record revenue of £715million and a £413million wage bill for 2023-24.
Finance expert Stefan Borson told Football Insider Newcastle must generate more than £500million in revenue a season to compete at the top of the Premier League.
Newcastle to offer Alexander Isak record-breaking contract offer
Newcastle had a quiet January transfer window as they are believed to be close to the profit and sustainability (PSR) limit again this season, with top-flight clubs only permitted to make £105million of losses over a rolling three-year period.
There were no new signings at St James’ Park, but Miguel Almiron joined Atlanta United for £8million and Lloyd Kelly completed his loan move to Juventus, with a £20million obligation-to-buy clause included in the deal.
The club managed to keep hold of Alexander Isak and Bruno Guimaraes following increased interest in the star duo.
Borson told Football Insider Newcastle will offer Isak the biggest contract in their history as they look to tie down the forward’s long-term future.
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