(Bloomberg) -- Newcastle United is now valued at over £1 billion ($1.3 billion), after its Saudi owners increased its holding by buying former owner Amanda Staveley’s stake, according to people familiar with the situation.
Saudi Arabia’s Public Investment Fund bought an 80% stake in the Premier League team from British businessman Mike Ashley in October 2021, paying around £305 million. The other 20% was originally split between London-based property developers Reuben Brothers and Staveley and her husband Mehrdad Ghodoussi.
PIF has invested a further £260 million since the takeover, the people said, asking not to be named discussing private information. Under the new ownership, Newcastle qualified for the UEFA Champions League for the first time in 20 years and reached the finals of the Carabao Cup at Wembley Stadium. Last season it disappointed by missing out on European qualification after finishing seventh in the Premier League.
Staveley’s 6% stake in the club should fetch about £60 million. The original 10% stake in the team was diluted as a result of PIF’s equity injections, the people said. Staveley has also been battling a bankruptcy claim from Greek shipping tycoon Victor Restis, who this year won a £3.4 million UK legal case over a 2008 investment. Staveley is appealing the ruling.
The current valuation of Newcastle puts the team at roughly the same valuation as seven-time European winner AC Milan, which was sold by Elliott Management Corp. in 2022 to RedBird Capital Partners for $1.3 billion.
Staveley is said to have raised £500 million for a fund that will invest in another football team, with Tottenham Hotspur among her potential targets, Bloomberg previously reported.
Newcastle’s Chief Executive Officer Darren Eales recently told the club’s TV station that revenues have soared north of £300 million.
“The revenues have been rising and it’s incredible to see,” he said. “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.”
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