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Newcastle United have no choice with unpopular St James' Park decision as FFP nightmare laid bare

Newcastle United's St James' Park stadium
-Credit:Robbie Jay Barratt - AMA/Getty Images


Newcastle United might be forced into making an unpopular decision to many fans in order to solve the ongoing St James' Park development dilemma. With a potential update to come in the spring, it is crunch time at the club ahead of much-anticipated changes to the famous old ground.

However, it will be hard to find a solution that suits all, says business of football writer Dave Powell. Speaking on the Everything is Black and White podcast, he explained the complexities and demands of any new stadia for Newcastle.

"Everton [for example] will benefit in the coming years from Bramley-Moore dock. They've had so many years of pain but Goodison Park was no longer fit for purpose for a football club in the modern age. St James' Park is iconic, it's a behomth of a venue.

"I love it because it sits in the city centre and is the best-located major football ground in UK, it really is out on its own in terms of that charm. However, what's good about its charm is what can be a hindrance in terms of allowing it to grow.

"If you look at what [Manchester] United have got planned for the land at Old Trafford, there's a huge regeneration project going on around there. There has to be the land. If Newcastle do choose to redevelop or remain in the same place there has to be the land around to develop for ancillary developments.

"Look at Spurs, they've got the F1 karting experience underneath the stadium, they've got the retractable pitch and the NFL one comes in. On one side of the stadium you've got normal changing rooms for the Premier League and on the other side you've got changing rooms that are wider because they're allowed to host the NFL.

"Why can't Newcastle, if they're building a new stadium, if that was the plan, they should be looking to be the venue which can be [that] for the north and bring some of these American sports to the different markets. London shouldn't have a monopoly over all of these things.

"You should be able to be a venue which houses huge boxing events or music events, etc, it has to be other ways of earning money. They need to find a way to improve the hospitality so they earn more money from that."

The multi-purpose arenas are now more important than ever for Premier League clubs seeking to raise additional cash outside of just weekends and midweeks with football. In a world of serious sporting punishments for breaching financial rules - something Newcastle know only too much about after being forced into unwanted transfer business over the summer in order to comply - a state-of-the-art modern stadium can be crucial to staying the right side of the line.

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With the comforts and luxuries of a new stadium, though, come questions over the connection and path that modern football is on. Powell continues, expressing sympathy with those who are concerned over what might follow.

"I'm a Chester fan so I still go and stand on the terraces," he explains. "What I continue to like about it is it's the antithesis of the modern game and that's my cost to bear because we're not a good football team but it's part of my identity.

"I absolutely get that from the point of view that the fans, particularly at Newcastle when if you live in and around the city you are a Newcastle fan, nobody is walking around being Liverpool fans or Chelsea fans or United fans, really. You're a Newcastle fan because it's identity.

"It's a hard sell for Newcastle to most to make the change to a new stadium but they're going to have to find a way to do more with the real estate they have. Whether that is redevelopment and buying up some existing land around there - I can't think off the top of my head what that looks like around the ground, I think it's fairly residential and built up, is it not, so there's not much scope for additional development around St James' Park because you're so close to the city centre.

"I don't think that's really an option, so can they do more with what they have? Sure. But maybe the city centre location is something that is a win. Travel links are a big problem for some stadiums. If you build a stadium which is out of town you have to get people there and that increases the cost and sometimes it can be soulless.

"Maybe redeveloping the stadium and turning it into what we've just talked out, what with its USP [unique selling point] being that it's one of the UK's most lively and bustling city centres. Maybe that's its USP."

A general view inside the stadium as players enter the pitch prior to the UEFA Champions League match between Newcastle United FC and Borussia Dortmund at St. James Park.
Newcastle United's St James' Park will be hoping to host the Champions League again next season. -Credit:Michael Regan/Getty Images

For the Saudi Arabian Public Investment Fund (PIF) there is still much to do and coming up with plans is just the start. "They're going to have to do more, they're going to have to raise matchday revenue and commercial revenue will go hand-in-hand with that," Poell adds. "What United have planned for Old Trafford is going to be a real problem.

"I think Newcastle, obviously, are in a similar situation to Chelsea. There's a difficulty there for Chelsea to moving or redevelopment because the trust owns the pitch etc, so they can't do much with it and it's very expensive to do development in London.

"When Tottenham did it, Daniel Levy spoke honestly, saying, the problem with doing it now - it might not happen to the level it did because interest rates aren't the same, so it wouldn't be cost prohibitive now - so Newcastle are going to have to find something cost-effective.

"And also, something which properly gives them the opportunity to challenge in terms of matchday revenue. Liverpool stayed where they are and have rebuilt Anfield, effectively, and raise commercial revenues through that and their matchday revenue, for the current year, is going to tip over £100million for the first time.

"Newcastle may adopt something similar but they're definitely going to have to, the bricks and mortar is something which is within the control of PIF and what they can do with it. So that's something they'll absolutely have to address."