Skip to main content

The St. James' Park dilemma

Decision time is finally approaching over whether the iconic (and expanded) St James’ Park will remain Newcastle United’s ground, or whether they take the bold, contentious step of venturing away from their previously ever-present home.   The considerations on either side are very complex.

“Early 2025” is when Newcastle state a resolution will be reached for what Brad Miller, their chief commercial officer (COO), describes as a “once-in-a-generation” opportunity. In Miller’s words, staying or leaving is like comparing “apples and pears, not apples and apples”, and the complexities involved explain why this process has already taken 18 months. “We only want to write that cheque once,” he admitted.

The Athletic has spent weeks speaking to stakeholders, insiders and those affected to outline just how complicated this decision is and has learnt:

  • Talks have yet to commence officially between the club and key stakeholders
  • There are claims Newcastle cannot sell St James’ — should they wish to do so — because the land is managed by the Freemen of Newcastle
  • Newcastle’s stadium must be ready “a minimum of six months” before it is due to host its share of matches at the 2028 European Championship, affecting building timescales
  • Some figures within the club doubt majority owner PIF will invest the required funds, despite the hierarchy’s insistence it will
  • Underground tunnels from the city’s Metro rail system present a key, expensive engineering challenge
  • Leazes Park is the most obvious alternative stadium site but it will be very difficult to gain planning permission

Demand is massively outstripping supply.  Thousands of supporters who left during Mike Ashley’s 14-year ownership of the club simply cannot get back in. There is no official season-ticket waiting list, partly because it would be so long, but a conservative estimate of ‘memberships’ — offering fans the opportunity to enter ballots for tickets — places them in the six-figure bracket (the club have never confirmed the volume, beyond 50,000-plus being sold on day one of availability in 2023).

Streaming of live matches is likely to increase in the future, along with the quality of the experience, but this does not compare with being in the stadium and savouring the great atmosphere.

The general infrastructure is also tired. St James’ has grown in piecemeal fashion, on the same site, since Newcastle Rangers played the first game there in 1880. Newcastle West End took up the lease and merged with Newcastle East End to form Newcastle United in 1892.

Part of the reason why St James’ appears lopsided today is because of the different phases of development, and the surrounding physical barriers.  Away fans are as far away from the pitch as anywhere in the Premier League.

The East Stand was built in 1972 as the ground’s largest stand. It is now its smallest. The lower tiers of the Gallowgate End and Milburn and Sir John Hall (now Leazes) Stands were redeveloped in 1995, taking capacity to just over 36,000. Then in 2000, ‘Level 7’ was finished, adding a 68m (223ft) cantilever roof above the Milburn and Sir John Hall Stands to provide unrestricted views and increase the all-seater capacity to its present level.

Ultimately, however, this also comes down to income generation.  The Premier League’s profitability and sustainability rules (PSR) have slowed Newcastle’s ability to progress as a club in recent years, and increasing every potential revenue stream is essential.

Newcastle have the seventh-largest capacity in England, with Everton’s new stadium at Bramley-Moore Dock (52,888), plans for expansion at Leeds’ Elland Road (53,000) and proposals to redevelop Aston Villa’s Villa Park (to 50,000-plus) meaning it will drop further down the list.

Interestingly, should Newcastle move, they are unlikely to be able to gain financially in the same way Arsenal did by selling their old stadium Highbury in 2006.  St James’ is part of the Town Moor, and managed by the Freemen of Newcastle (yet to be officially approached). The land was set aside long ago for a recreational sports ground and, while Newcastle own the structure, they cannot sell the plot for commercial redevelopment without council and Freemen consent, plus a change to the user clause in the lease, according to council sources and Skempton.

Any shift in the site’s footprint would likely require a temporary move, and Newcastle do not have many viable alternative groundshares.  Miller has already ruled out using the 67,000-capacity Murrayfield rugby stadium in Scottish capital Edinburgh (90 miles/150km to the north), and bitter local rivals Sunderland are unlikely to allow Newcastle to play at their near-49,000-seat Stadium of Light, around 10 miles to the south-east (politically too, this would be a difficult sell). Middlesbrough’s Riverside Stadium, which has a capacity of just under 35,000, is around 30 miles further south.

St James’ is among 10 host stadiums chosen for the 2028 European Championship being staged in the UK and Republic of Ireland, and will be the venue for group matches, as a minimum — which complicates matters.

A new stadium is predicted to cost between £1billion and £2bn, significantly more than the £500m to £1bn estimated for a widescale redevelopment of St James’. While the current ground already has 52,256 seats and a fresh site would require all those and more to be paid for, the latter could, according to Miller, generate up to twice as much revenue.

The NUST does not have an official position yet, as it awaits firm proposals. However, in a survey of its 11,500 members in May, 73 per cent said they preferred to stay, with 19 per cent preferring to move.

Wherever Newcastle’s future lies, there remains a long road ahead.

 

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s...

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to ...

Millwall punch above their weight

Millwall’s season was overshadowed by the tragic death of owner John Berylson following a car accident. The American had been an exemplary owner, beloved by the fans for his leadership, passion and generosity. Millwall’s finances had been pretty good during his tenure, which we shall explore by looking at the most recent accounts from the 2022/23 season, when the club narrowly missed out on a place in the play-offs after finishing 8th. Millwall’s pre-tax loss slightly reduced from £12.6m to £12.2m, as revenue rose £0.8m (4%) from £18.6m to a club record £19.4m and player sales improved from a £0.1m loss to £2.5m profit. However, other operating income dropped from by £1.1m from £1.3m to £0.2m, while operating expenses increased £1.7m (5%) from £31.6m to £33.3m. The main driver of the revenue increase was broadcasting, which rose £1.1m (12%) from £9.1m to £10.2m, though match day was also up £0.4m (7%) from £5.8m to £6.2m. In contrast, commercial fell £0.7m (19%) from £3.7m to £3....