Why Saudi cash hasn’t been able to turn Newcastle into a soccer superpower

Despite being bought by Saudi Arabia’s sovereign wealth fund in 2021, Newcastle United is still waiting for its first major domestic trophy in 70 years.

That may come as a surprise to anyone who thought access to Saudi oil riches would dramatically improve the Premier League club.

Unlike Abu Dhabi-backed Manchester City, which has dominated English soccer over the past decade, and Qatari-backed Paris Saint-Germain, which has done likewise in France, it has been a slower burn for Newcastle, which hopes to end its trophy drought on Sunday when it faces Liverpool in the English League Cup final at Wembley.

That is largely because these are different times and having mega-wealthy owners today does not give teams the freedom to spend as exorbitantly as they once did.

Financial Fair Play (FFP) regulations essentially ensure teams can spend only in relation to what they earn.

So while Saudi Arabia’s Public Investment Fund states it has around $925 billion in assets, Newcastle has nothing like the spending power it might have had if not for restrictions from soccer’s governing bodies.

The Premier League profit and sustainability rules (PSR) allow clubs to lose a maximum of 105 million pounds ($130 million) over a three-year period or face sanctions including points deductions.

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In the three years since its takeover, Newcastle reported losses of 70.7 million pounds in 2022 ($91 million), 71.8 million pounds ($92.8 million) in 2023 and 11.1 million pounds ($14.4 million) in its latest accounts released this month.

Certain areas of spending are not included in PSR calculations, meaning Newcastle has remained compliant with the rules, but it has had to curb spending on transfers.

After splashing around $450 million on signings in the first three years under Saudi ownership, Newcastle spent around $36 million last summer and recouped around $100 million in sales.

That is in contrast to the mega spending that catapulted City and PSG to dominance.

City was bought by the ruling family of Abu Dhabi in 2008 and immediately became one of the richest clubs in the world. On the back of signing superstars like Yaya Toure, Sergio Aguero, Kevin de Bruyne and Erling Haaland, it has won 20 major titles.

PSG, owned by Qatar Sports Investments since 2011, signed some of the biggest names in the sport including Zlatan Ibrahimovic, Kylian Mbappe, Neymar and Lionel Messi. It has won 10 French leagues in that time.

The exorbitant spending by City and PSG breached UEFA’s FFP rules. What’s more, City has been accused by the Premier League of breaching more than 100 of its financial rules over a nine-year period, and is awaiting the outcome of an independent hearing.

Newcastle says its approach is to make “long-term, patient investment,” and while that led to a return to the Champions League for the first time in 20 years last season, the trophy wait goes on.

Even as one of English soccer’s iconic teams, Newcastle hasn’t won a major domestic trophy since the 1955 FA Cup. The now-defunct Inter-Cities Fairs Cup in 1969 was its last major title.

There have been near misses and painful lows in the intervening years. Soccer greats have come and gone and the club has been awash with money on more than one occasion.

That wait for an elusive trophy could end on Sunday against a Liverpool team that is cruising toward a record-equaling 20th English league title.

But even that would seem like a modest return after almost four years of Saudi backing.

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James Robson is at https://twitter.com/jamesalanrobson

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AP soccer: https://apnews.com/hub/soccer