Newcastle United believe they will be able to double their match-day and non match-day revenue if they construct a new stadium rather than rebuild St James’ Park.
The new stadium project is one of the more intriguing aspects of the club’s growth plan under Saudi Arabia’s Public Investment Fund and there has been some frustration from supporters about the amount of time it is taking to reach a decision.
But the club are determined to get the decision right as they weigh up the benefits of remaining on their current site versus moving elsewhere.
As revealed by Telegraph Sport last month, the two options are to rebuild, modernise and expand St James’ Park, or move elsewhere in the city centre with the land adjacent to their current home on Leazes Park the favoured site.
However, Leazes Park is a historical green space and part of a wider conservation area, which will cause potential issues in terms of getting planning permission. It would also, presumably, face legal challenges from those who wish to protect the green space.
There has also been talk in private of building a new stadium on the land around the city’s racecourse in Gosforth, which is owned by minority shareholders the Reuben family, but this would not be in the city centre and is likely to be opposed by fans.
Either option would give Newcastle a much larger stadium, but the club’s chief operating officer, Brad Miller, appeared to hint that the financial benefits of a move could outweigh the emotional attachment to St James’ Park, while stressing that both options remain on the table.
A new stadium could give Newcastle a capacity of more than 70,000, whereas it is likely to be around the 65,000 mark if they rebuild St James’ Park.
“The first choice is, if we stayed at St James’, we have the 52,000 seats already,” said Miller. “It comes with significantly more money if we transform it and it will look amazing. That’s option one.
“Option two is if we were to move away, and not too far away as we aren’t going to stretch the elastic band to the point of breaking. The second option, we are looking at it seriously as it does have the potential to earn more than twice as much in terms of revenue, compared to a transformation of St James’ Park. And more seats, a lot more seats potentially.”
‘A new stadium has the potential to earn a lot more’
Newcastle’s ownership group is expected to make its final choice in the new year, with Miller insisting the club will attempt to be as transparent as possible throughout the process.
“We have taken the opportunity to look at ‘what will a new stadium look like?’” he said. “It’s not comparing apples with apples, they are not like for like. It’s comparing apples with pears.
“The brilliant thing about St James’ is it is an iconic location, the atmosphere and the competitive edge it gives the team on the pitch – and it has 52,000 seats already.
“A new stadium doesn’t have that, and we’d have to pay for all those seats again. But a new stadium has the potential to earn a lot more, both on match days, and non-match days.
“It is a once-in-a-lifetime opportunity. So, everything we are doing, do we invest and transform St James’ as we see it today on site where we are? Or do we take that bold move and think about moving?
“We want to make sure it is a very robust process. So, regardless of the outcome, I want to stand up in front of everybody through the process and say: ‘This is why it is a logical decision.’”
Miller was speaking at a fan event at STACK Newcastle and when asking for a show of hands in support of a rebuilt St James’ Park or an entirely new stadium, the majority at the event elected for the new stadium.
However, in a recent survey conducted by the club, more than 70 per cent of respondents said they wanted to remain at St James’ Park.
