Newcastle United are set to announce their final decision on their proposed new stadium at the end of June, confirming that St James’ Park will no longer be the home of the Magpies.
It is a saga that has lasted for years, but one that finally looks to be settled. All signs point towards Newcastle United moving into a new stadium.
The decision is likely to upset a good number of supporters, but it is one that will help the club reach the ambitious heights that the PIF are aiming for.
Simon Jordan backed Newcastle’s new stadium project, with the former Crystal Palace owner adopting a “build it and they will come” attitude. Newcastle’s new stadium was expected to have a capacity of 65,000. However, Carabao Cup celebrations appear to have swayed the mindset of club officials, and Newcastle will now build a 70,000-seater stadium.
The decision means that Newcastle will have one of the biggest stadiums in England; it will be bigger than the likes of Anfield and the new Tottenham Hotspur Stadium, both of which have capacities over 60,000.
With the new stadium set to be announced at the end of the month, Geordie Boot Boys spoke to Adam Williams, Head of Football Finance and Governance Content at GRV Media, to share what the increased capacity means for Newcastle.
Photo by Scott Llewellyn | MI News/NurPhoto via Getty Images
Photo by Scott Llewellyn | MI News/NurPhoto via Getty Images
Suggestion Newcastle United are going for quantity over quality with their new stadium.
The decision to move into a new ground is not one Newcastle officials have taken lightly. Announcements seem to have been pushed back on several occasions to ensure they get the decision right.
Speaking to Williams on the decision, Geordie Boot Boys learned that the decision to increase the capacity of the proposed new ground could be the case that the PIF want to generate as much matchday income as possible through ticket sales, and an increased capacity would help them achieve that.
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“If Newcastle are going to 70,000, they must be confident that they can satisfy that demand and still have competition for tickets,” Williams said.
“Ultimately, the demand for seats is what creates opportunities for higher prices.
Capacities
St James’ Park 52,305
Newcastle United’s new stadium 70,000
“They have to get the balance right, of course. They can’t go down the dynamic pricing route because that is understandably going to upset fans. When you’re commercialising the club to create more PSR headroom, you need to make sure you don’t leave supporters behind in the process.
“Generally speaking, I think the more fans you can fit into a new stadium the better. That isn’t always the view of those in stadium design, however. Usually, the club is telling them to design the most lucrative stadium, not the biggest one.
“Everton, for example, could have gone much bigger than 52,000 but they chose to prioritise fan experience, hospitality areas and opportunities for non-ticketing income over raw capacity.”
PIF have ‘unlimited funds’ to build a new stadium for Newcastle United
It has been reported that Newcastle’s new stadium will cost around £1.2bn and will take several years to complete after planning permission is passed. Fans should not expect the club to move into the new ground overnight.
The new stadium also gives PIF a lot of thinking to do over the future of St James’ Park, where they have a few options. It has been reported that St James’ Park will be turned into a green space to make up for what is lost in Leazes Park.
Additionally, they could move Newcastle’s women’s team into St James’ Park and pull off a move similar to Everton, whose women will play at Goodison Park from next season.
Another, more lucrative move they pursue is to create a fan zone on St James’ Park to generate more matchday income. The introduction of the Sela St James’ STACK has proven to be a real money-spinner for the club, so they could look to replicate that on a bigger scale in the future.
On possible options for Newcastle’s stadium and surrounding areas, Williams added: “With PIF, they have practically unlimited funds to make this work, so we’re going to see something very ambitious, both in the stadium itself and the surrounding site.
I think PIF will be telling the designers to create a venue which gets maximum footfall without sacrificing the more lucrative areas of the stadium such as the boxes.”