The similarities between Newcastle United and Paris Saint-Germain go beyond their state ownerships.
At the end of a 14-year project following Qatar Sports Investments’ takeover in 2011, PSG are finally European champions. Their 5-0 humbling of one of the game’s old aristocrats in Inter Milan in Munich last Saturday was arguably the peak of the Gulf region’s achievements in football.
Saudi Arabia, whose Public Investment Fund (PIF) owns Newcastle United, is now the last of the Gulf nations to have bought heavily into football but not yet secured a coveted Champions League.
The Saudis are arguably the most ambitious and best-resourced of the lot, too.
They will host probably history’s most lavish World Cup in 2034 and their web of influence – through club ownership, sponsorship, physical infrastructure, institutional relationships and media rights – is more sprawling than Qatar’s or the UAE’s.
Photo by Serena Taylor/Newcastle United via Getty Images
Photo by Serena Taylor/Newcastle United via Getty Images
Unlike Manchester City or Paris Saint-Germain, however, PIF already had Profit and Sustainability Rules (PSR) to reckon with before they crossed the Tyne Bridge in October 2021.
That has slowed Newcastle’s rise under Saudi ownership, though they are by any measure ahead of schedule, with two qualifications for the Champions League and a first trophy, the League Cup, in 70 years under their belts in just three full seasons at St James’ Park.
After a season of relative restraint in the transfer market in 2024-25, Eddie Howe has more room to manoeuvre with PSR this summer. Having won his power struggle with now-former sporting director Paul Mitchell, the manager is now also the ultimate authority when it comes to recruitment and retention.
As well as more breathing space under the Premier League’s spending rules, the Magpies also have leverage with their star players – the likes of Alexander Isak, Bruno Guimaraes, Anthony Gordon – to keep them in the North East.
An interesting subplot next season, arch-rivals Sunderland will be back in the Premier League. There is a similar situation at the Parc des Princes, where PSG’s Parisian neighbours Paris FC have returned to Ligue 1, financed by Red Bull and Louis Vuitton billionaire Bernard Arnault, the world’s ninth-richest individual.
In France, Nasser Al-Khelaifi’s side have not had a genuine competitor in a generation. Paris FC perhaps have the best chance to challenge their supremacy in the long term.
Significantly, if the owners are prepared to underwrite financial losses, there is no domestic PSR system to slow Paris FC down. Unlike the Premier League, France’s DNGC permits consistent losses as long as they are guaranteed by an owner’s equity contribution.
Newcastle can only dream of such a relaxed system. However, Premier League PSR has forced the Saudis to think smarter, investing in physical infrastructure and the commercial operation to increase revenues and, in turn, spending power.
And in PSG’s slick commercial operation, Newcastle have an oven-ready example to follow.
Newcastle could replicate PSG’s commercial strategy after opening office in Paris
PSG’s annual commercial income was £330m at the last count, of which the majority came from sponsorship. Their deal with Nike’s Air Jordan, in particular, has been transformative for the club, turning their kit into a mass-market item and a streetwear staple.
It’s a formula then Newcastle, as with every other team in the world, would love to replicate.
Newcastle’s commercial income is a fraction of PSG’s at £86m, though it has nearly quadrupled since PIF’s takeover. If they haven’t already, they will be aiming to break the £100m barrier in 2025-26.
Chart showing commercial income of Newcastle United, with TBR Football logo
Newcastle United commercial income Credit: Adam Williams/TBR Football/GRV Media
PIF have the luxury of being able to tap into a portfolio of Saudi-owned businesses. Front-of-shirt sponsor Sela and sleeve sponsor Sela, for example.
Those are both brands native to the Gulf state, but PIF’s staple of companies is growing fast in Europe too. Now, the sovereign wealth fund has opened its first European office – in Paris, as it happens.
TBR Football spoke exclusively to Kieran Maguire about what this might mean for Newcastle.
“We have seen PSG open up a store in London,” said the Price of Football author, “and I’m not saying that this is necessarily going to replicate that model, but I think this is a vote of confidence of PIF in the European market, of which Newcastle United are one of their flagship investments.
“This can only be a positive. The ambitions of the fans and the owners are broadly aligned, and to realise those ambitions, you’re going to need significant investment in both infrastructure assets and recruitment. That’s how you scale commercial income like PSG have done.
“If you become more familiar with European investment culture, this can only be a good thing for Newcastle.
“There is also the factor of Saudi Arabia rivalry with Qatar, which could be interesting given this office’s proximity to Paris Saint-Germain.”
Premier League clubs to vote on PSR workaround – could PIF block it?
Thanks to increasing baseline revenues, PSR-efficient academy player sales and emphasis on retention rather than recruitment in 2024-25, Newcastle currently have ample headroom under PSR this summer.
However, the owners have said they will continue to spend the maximum allowed under the rules. They aren’t the only Premier League club regime for whom this is the case. Chelsea, for instance, have used all manner of loopholes to stay the hand of the Premier League’s PSR enforcers.
Among the accountancy sleights of hands they have executed is the use of intra-company asset trading, like the sale of two hotels at Stamford Bridge and the women’s team to another business within the ownership group. This has allowed them to book an artificial profit for PSR purposes.
Photo by Lauren Sopourn/Getty Images
Photo by Lauren Sopourn/Getty Images
But the Premier League wants to close this loophole and, as relayed by The Times, will put it to a vote at this summer’s AGM.
Incidentally, UEFA do not count the proceeds from this type of deal towards their own PSR quota.
The Premier League needs the support of 14 teams to ban the intra-company asset sales loophole, but could Newcastle side with Chelsea and a handful of others to veto it?
Aston Villa are also said to be considering the internal sale of their women’s team to create more PSR breathing room, while it is an option which many experts have said Man United should consider. At the moment, Newcastle don’t need to use this route, but there may well be a time in the future where it could be a PSR lifeline.