Newcastle United have announced the purchase of Leazes Terrace near St James’ Park as the club look to make a decision on the stadium.
After the latest Saudi Arabian Public Investment Fund summit, there still hasn’t been a decision on if Newcastle will expand their current ground or move elsewhere.
The Daily Mail’s Craig Hope revealed last week some potential designs for a new ground.
But with Leazes Terrace being purchased, an expansion for St James’ Park is also on the cards, but it would also help development of a new stadium as well.
In a statement, the club said: “Newcastle United have completed the purchase of a significant portion of the historic Leazes Terrace building next to St James’ Park.
“The acquisition of a substantial majority of the Grade I listed structure includes its northern, southern and western elevations – including all areas facing the stadium.
“It also includes most of its eastern elevation, with a small block of private residences remaining in this part of the building.
“This strategic purchase is part of the club’s long-term planning as it continues to assess all credible and feasible options for the future of its home stadium.
“It provides Newcastle United with greater flexibility and ensures any future decisions support the club’s ambitions, as well as its responsibilities to the local community and the city of Newcastle upon Tyne.
“The club recognises the building’s historic and architectural significance and is committed to its preservation.
“There are no plans to change the current use of Leazes Terrace, which is currently let for student accommodation, and the club will retain the building’s existing property management operator.
“The investment to purchase Leazes Terrace does not impact the club’s football trading position.”
The club make specific reference to this being related to the stadium plans.
However, the buildings are listed, and the Magpies also mention the fact the current use of those buildings won’t be changing yet.
But this purchase coincides with reports from Saudi Arabia that the Magpies are looking for outside investment.
talkSPORT understands that PIF have always been open to a group purchasing a minority stake since Amanda Staveley and her husband Mehrdad Ghodoussi left.
Any minority investor would likely help facilitate a new stadium or an expansion of St James’ Park.
Details
The Athletic are reporting that Newcastle have spent between £20 and £25million to make this purchase.
They don’t own the whole complex, but a majority of it is now in the club’s possession.
Chris Waugh reports that this suddenly doesn’t mean that expanding St James’ over a new ground becomes the club’s priority.
This is also because of the Grade 1 ranking of the buildings, meaning it is extremely difficult and undesirable to knock those buildings down.
But the rents from the buildings can be included in UEFA’s financial restrictions, while the selling of St James’ Park to themselves isn’t included.
This explains why the club see it as a strategic purchase.
But they are still yet to decide if it will be a St James’ Park expansion or a new ground despite the Leazes Terrace purchase.
Just get on with it
Simon Jordan believes that Newcastle United need to just build a new stadium.
He feels as if the club can push on revenue wise with a new ground.
Speaking about the future of St James’ Park earlier this year, Jordan said: “The Saudis have played nicely with the football establishment and have played by the rules.
“So, the one thing they can do to enhance Newcastle United and give them the opportunity to be at the top table, which doesn’t take anything away from PSR, is build a new stadium. Get on with it.”
Newcastle fans will hope that this purchase of Leazes Terrace is one of the final piece in the jigsaw required for the club’s ownership to decide what to do with St James’ Park.