NUFC Blog

Newcastle's exciting message on PIF, transfers and £300m boost as major positives emerge

by Olly Hawkins · 17 July 2024, 18:06

It was great to hear clear and positive communication from Newcastle United yesterday, where Darren Eales not only released a nine-minute interview on the club's media channel but also spoke directly to a host of local journalists.

A huge amount of information and quotes came out, covering PSR, Paul Mitchell, transfer plans, sponsor ship deals and PIF's continued commitment to the club in light of Amanda Staveley's surprise exit.

In this piece, we've picked out some of the key quotes and five major positives that emerged from our CEO:

1. Saudi PIF fully committed

“As far as the PIF are concerned – and Jamie Reuben on behalf of [co-owners] the Reuben family – they are committed. This is an ownership group that has got a big portfolio of companies. In one sense, on a scale of investment, it’s probably one of their smallest, but in terms of profile and their interest, it’s one of their highest.
“We’re excited. I’ve spoken about the end of the cycle with PSR and this is a big year for us now going forward as we go on that journey to become a club competing for trophies and being in Europe every season. That’s got to be our aim going forward.”

2. PSR breach avoided and key players staying

“The good news is we are compliant (with PSR) now. We did what we needed to do and we are compliant. Going forward we are into a new cycle and we do not want to be leaving ourselves in that situation again in such tight circumstances.
"We did not want to lose those players (Anderson and Minteh) but again we had to do the deals to leave the squad in the best place possible for Eddie. We kept the core of our senior squad. 
"In that respect, with Bruno, Isak, Gordon, Joelinton and [Sandro] Tonali to come back, we’ve got Lloyd Kelly coming in as an addition already, Lewis Hall and Tino Livramento, we’ve got the squad to kick on. But we are always looking to add to that and that is the challenge now. That is what we need to do, we need to find ways to improve and that is what we are doing with Eddie and Paul (Mitchell)."
In addition to this, Sky Sports Keith Downie revealed that Eales told the media that Newcastle have zero intention of losing Bruno Guimarães, Alex Isak and Anthony Gordon in what remains of the window and expects all three to be Newcastle players at the end of the transfer window.

3. Funds available to strengthen the squad and Paul Mitchell partnership

"We've now got a new cycle that kicks into play. We had a couple of years where we were £70m in losses, so that meant it was quite tight for us at the end of this financial year (to 30th June). We are compliant now and are now in a new three-year cycle after £70m losses.

"So it's good news for the supporters and the club that, looking forwards now, we have a new cycle and new revenues coming in (Adidas, St James' STACK and more to come). 

4. Paul Mitchell excitement

"We're really excited. For us as we go on the journey as Newcastle United, as you know we’ve got high ambitions and want to try and improve year on year. From the discussions we had with ownership and with Eddie, when you get a chance to change you have a look and say ‘well what do you want to focus on in this role?’

"I think there were some crucial factors – firstly recruitment. 90% of the role is recruitment, that’s the easiest way you can have an impact on the team. Someone with a strong recruitment background was essential.

"Having that Premier League experience with Paul being at Southampton, obviously our paths crossed at Tottenham Hotspur as well but then also having that global sense of Paul being at Monaco and at RB Leipzig as global technical director.

"Increasingly this role is so important because in collaboration, Paul with Eddie, we’ve seen it, almost with FFP it’s like having a salary cap because there’s a certain amount you can spend.

"At Newcastle United we will spend to the maximum available headroom. There’s never a doubt, never a question we won’t put the resources in. So then it is: how do you maximise those resources? What that means is every decision has an impact and that’s everything from ‘can you loan a player out who is on the fringes and get a return on that?’ That helps you have more powder in your keg to put that team out there for Eddie.

“What I’m excited about is those two [Howe and Mitchell] working together to maximise the availability of resources for Eddie on the pitch. We know what an amazing coach Eddie is and what he can do for those players when he gets them. It’s going to be a great partnership.
“We are having those discussions. Paul Mitchell has come onboard and it is for him and Eddie to discuss what sort of targets they want, the areas they want to strengthen. It’s then important to have those meetings to decide where we are going to allocate those resources to strengthen our squad.”

4. Revenue exceeding £300m

"Our revenues have been rising and it’s been incredible to see. Turnover from £140million to £180m to £250m, this past financial year will be north of £300m so that’s over 30% compound annual growth which is a phenomenal rate but we’re still behind the big six so we know that if we’re going to be competing and punching above our weight, how we use our resources is really important.

"That’s why it is not as simple as saying ‘well you’ve got X amount so you’re going to go and spend it on one or three players’, the job now with Paul and Eddie working together is, how can we use those resources to strengthen the squad going forwards?"

 5. New sponsorships on the horizon

"It's a special club with great potential and we're seeing that now with our partners, like Sela our front-of-shirt sponsor and Adidas. We have a number of companies in the background who are seeing this. We have a number of other new partners in the pipeline who we will be hopefully announcing over the coming months." 

Great words from Eales and comments that fill me with hope heading into the final six weeks of the transfer window and a vital 2024/25 campaign for the club.

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