Newcastle United’s transfer woes are continuing, despite having the richest owners in the world.
The wealth of PIF is not fully available to Newcastle United, as PSR rules restrict how much money the Magpies can actually spend in the transfer market. So far this summer, they have not spent a penny, with no major signings arriving at St James’ Park.
One could be near, with Newcastle ‘closing in’ on James Trafford. That is the same James Trafford that Eddie Howe wanted in 2024 but could not sign due to PSR.
As Newcastle continue to tread extremely carefully, their rivals seemingly have money to burn.
How PIF are inadvertently funding Newcastle United’s rivals
When it comes to Manchester City and Chelsea, that is partially down to PIF.
They are both competing at the Club World Cup in America right now, which is a competition that PIF are intrinsically linked to. The Saudi investment fund partnered with FIFA ahead of the tournament, while they have also invested in DAZN, who are broadcasting the Club World Cup.
PIF's branding pictured alongside the FIFA Club World Cup logo ahead of Real Madrid vs Al Hilal.
Photo by Robbie Jay Barratt – AMA/Getty Images
After PIF bought shares in DAZN, the broadcasters agreed a £750million deal to televise the tournament. In essence, PIF’s money is going into the pockets of the likes of Manchester City and Chelsea.
That is the view of TBR Football’s finance expert Adam Williams, who spoke to Geordie Boot Boys about PIF’s Club World Cup involvement before the tournament began.
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“In terms of the implications for Newcastle, I think an interesting way of looking at this is that they are effectively funding several of the club’s rivals, not just on the Premier League stage but also internationally as well,” he said.
“If Chelsea win the tournament, for example, they are going to get almost £100million in prize money. Now, Chelsea have got off the PSR hook with some creative accounting, but that’s not going to last them for the whole three-year domestic PSR cycle. £100million in prize money would let them breathe a lot easier, which in turn strengthens one of Newcastle’s direct rivals.
“I think this is emblematic of the fact that Newcastle aren’t PIF’s top priority. They are thinking much, much bigger. The club is an important part of the masterplan, but it is one cog in a machine.”
How much Chelsea have already made from the Club World Cup as they win Joao Pedro race
While Newcastle stand still, Chelsea are on course to sign another player who Eddie Howe wanted at St James’ Park.
The first was Liam Delap, who chose to join the Blues ahead of Newcastle. Now Chelsea are going to sign Joao Pedro for around £50million, despite the 23-year-old being the Magpies’ top target.
Enzo Maresca’s side have no PSR problems, as they boost their revenue at the Club World Cup. According to journalist Ben Jacobs, Chelsea have already pocketed £40million in prize money. That amount could rise to £55million if they beat Palmeiras in their next game.
Chelsea have earned close to £40m ($55m) so far at the Club World Cup. A further £15m ($21m) is at stake if they beat Palmeiras on July 4.
The tournament could effectively pay for Joao Pedro or Jamie Gittens, and if #CFC go all the way cover either plus Liam Delap. It's… pic.twitter.com/g8mOTHSqqF
— Ben Jacobs (@JacobsBen) June 29, 2025
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In essence, their involvement at the Club World Cup is going to fund their deal to sign Joao Pedro. They are getting a big chunk of a prize pot that Newcastle United’s owners PIF heavily contributed towards.
They are inadvertently strengthening Newcastle’s Premier League rivals, while hindering Eddie Howe. That sums up the fact that Newcastle United are not PIF’s priority. Otherwise, this would not be happening.