The parent company of Newcastle United has provided additional capital to the club with the issuing of a further £12.5m worth of shares.

PZ NewCo Limited, the holding company that owns the Magpies, showed on Companies House on Monday that it had provided fresh capital through the allocation of new shares, a financial tactic that is commonplace in football. The money could have come from either the ultimate owners, the Saudi Arabian Public Investment Fund (PIF), or the Reuben Brothers, although it is anticipated that it arrived from the former.

PIF made a similar move back in November, one of several done throughout their time as owners of the club, where £35m was provided through a single share issue. The latest move is the seventh time that the PIF have injected capital into the football club, with the total invested now tipping over the £350m mark on top of the £305m paid to acquire the club from Mike Ashley back in 2021.

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While such a move taking place in January will undoubtedly lead to some interest in just what the money is for, and people will attempt to link the dots to potential transfer activity, the overwhelming likelihood is that the funds will be used for working capital to meet payments that are due to clubs for transfer instalments, or other debts that have reached a maturity date. It won’t be supplementing a transfer budget.

The club, valued now at around £1bn, has seen success under the PIF, qualifying for the UEFA Champions League at the end of the 2022/23 Premier League season following a fourth-placed finish. But, having invested in improving the squad through acquisitions such as Alexander Isak, Bruno Guimaraes and Sandro Tonali, Newcastle have found themselves hamstrung in their bid to build on that 2022/23 success by the Premier League’s profit and sustainability rules (PSR).

The Magpies were compliant with the 2023/24 assessment cycle and the anticipation is that the current financial year, 2024/25, which will be included in the final three-year calculation for PSR before a switch to a squad cost ratio rule, will allow the club to lose more money that previously and remain PSR compliant, meaning that they may be more willing to entertain risk in the transfer market and have less of an onus on them to sell top talent like Isak or Anthony Gordon.