Newcastle face massive UEFA fine over £172m stadium sale
Newcastle face massive UEFA fine over £172m stadium sale Newcastle United are facing the possibility of a significant financial penalty from UEFA after a controversial internal financial transaction involving their stadium. The issue centres on the sale of the leasehold for St James’ Park to a company linked to the club’s ownership structure. The deal, completed on June 27 last year, saw the leasehold sold for around £172 million to PZ Newco Holdings Ltd.
That company is connected to Newcastle’s Saudi-backed majority owners, the Public Investment Fund. The transaction generated a profit of approximately £129 million for the club. Newcastle also recorded an additional £4.
1 million from the sale of another related company. Together those deals helped Newcastle post an overall accounting profit of roughly £133. 1 million.
The financial boost allowed the club to remain compliant with the Premier League Profit and Sustainability Rules. However, UEFA’s financial regulations treat internal asset sales differently. Under UEFA rules, profits generated from transactions involving related companies cannot be counted as revenue.
That means the stadium sale may not be recognised in the same way when European financial assessments are conducted. As a result, Newcastle could face disciplinary measures from UEFA. Those sanctions could include a substantial fine.