Newcastle united subject of $1. 1bn claim as owners pull off masterstroke

NEWCASTLE UNITED'S OWNERS BOUGHT THE CLUB FOR £305M BUT THE MAGPIES' VALUATION HAS SOARED IN THE LAST THREE-AND-A-HALF YEARS AND FORBES HAVE TAKEN NOTE 11:00, 01 Jun 2025 Newcastle

United have been named in the top 20 most valuable clubs in the world. Newcastle's valuation has soared to $1.1bn (£817m), according to Forbes' calculations, which puts the

Magpies 19th in the overall list. No other side in the rankings had a greater year-on-year increase (38%) than Newcastle. Newcastle have some way to go to catch Real Madrid, who are

estimated to be worth $6.75bn by Forbes, but the black-and-whites' valuation has rocketed three-and-a-half years after the consortium bought the club for £305m. For context, Chelsea

have been sold for £4.25bn. A minority stake in Manchester United cost Sir Jim Ratcliffe £1.25bn. Even a 10% share in Chelsea Women went for £20m last month. It is worth remembering the dire

situation relegation-threatened Newcastle were in at the time, of course, and the subsequent sums that needed to be pumped into the club, but the black-and-whites have since qualified for

the Champions League on multiple occasions and ended a 70-year wait to win a major trophy. Revenues have more than doubled from £140.2m in the final full campaign of the Ashley era to

£320.3m last season and CEO Darren Eales declared that the 'rate we have grown is unprecedented in football'. Article continues below "The 32 per cent CAGR (Compound Annual

Growth Rate) is more than any club has done before," he explained a few months ago. "Yes, we are limited by PSR in terms of what we can spend on the team, but things like the Stack

and all of those investments that come outside of that in terms of cap expenditure, that is still going in from ownership. "From my perspective, and I deal with them day to day, they

are 100 per cent committed to Newcastle. That’s the exciting part. There is no change in terms of where we want to get to. "The one thing we would say is that we have to do that within

the regulatory regime that is there. There is frustration by that PSR constraint. If it wasn’t for that, we could spend more on the team and accelerate our progress on the pitch. "At

the moment, the way we approach from ownership down - and everyone is aligned - is that we maximise our revenues and with that we spend to the max we’re allowed to, so we incur those losses

of £105m over three years to give Eddie and the team the best possible players on the pitch that he wants. We’re in alignment in terms of how we build that squad. "It’s frustrating

because we want to go A to B in three years, but we can’t do what was done in the past. The days of an [Roman] Abramovich or Man City in the early days, you just can’t do that anymore. You

can front load the spend, but you have to pay the piper. We have to be strategic." Forbes' rankings reflect the revenue and operating income from the most recent set of accounts -

i.e. the 2023/2024 campaign - and the valuations are enterprise values (equity plus net debt) based on historical transactions and the future economics of each league and team. Information

from executives in the game, investors, credit rating agency reports and sports bankers as well as the annual Deloitte Football Money League report have also been used by the business

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