Newcastle, with its rich history and a population exceeding 820,000, has experienced an annual growth rate of 0.05% over the past decade. The average age of its residents is 37, making it a youthful city. About 81% of its population is of British origin, while 19% come from various nationalities and ethnic backgrounds. Newcastle is a coastal city in the northeast of Britain, close to Scotland and the rest of Western Europe. It is known for its seaport and international airport, which handles around 5 million passengers annually.
With the phrase “The happiest day of our lives,” we witnessed the overwhelming joy and celebrations of Newcastle’s residents, all of whom deeply love their city’s only football club. The excitement was shared by both young and old, fueled by the hope that the takeover of Newcastle United by the Public Investment Fund (PIF) and its partners would restore the club’s former glory and drive significant economic growth for the city. The passionate Newcastle supporters believed in Saudi investment as the dream that would rescue their club and bring renewed hope to their city. The fans played a crucial role in pushing for the deal, even after the Saudi consortium withdrew the previous year due to delays from the English Premier League. The Newcastle fanbase mobilized multiple times, traveling from the north of England to central London and demonstrating outside the British Parliament to demand approval for the Saudi investment. This trust and admiration built over the past year resulted in an outpouring of hysteria and limitless dreams for their club, especially as they witnessed Saudi Arabia’s ongoing achievements toward Vision 2030.
The persistence of PIF and its partners in acquiring Newcastle United, despite various obstacles, showcases patience and strategic vision. Newcastle was among the top 20 global sports brands until the end of 2020 and ranked 22nd in 2021. Sports investments play a vital role in a nation’s soft power through sports diplomacy, enhancing its global image and serving as a key economic driver for sustainable development.
Globally, industries that connect people—sports, fashion, music, tourism, and entertainment—are increasingly intertwined, creating integrated economies. Sports also contribute significantly to education, healthcare, data science, communications, role modeling, community peacebuilding, city branding, and national identity promotion.
It is undeniable that the English Premier League is the most prestigious, oldest, and commercially valuable football league in the world. It is broadcast in over 188 countries and holds the highest global viewership. Nine English clubs are ranked among the top 20 global sports brands. The league also attracts between 800,000 and 1 million sports tourists annually, with each tourist spending an estimated $80 to $100 per day.
When investing in a football club, the investment team must include technical experts who assess the club’s footballing needs to restore its former glory. This includes upgrading existing facilities, which have suffered from neglect under previous ownership. Expanding St. James’ Park’s seating capacity from 51,000 to 72,000 is essential due to high ticket demand. Additionally, significant improvements are needed for training grounds, pre-season camps, the club’s academy, and human resources within the organization.
However, the impact of sports investment extends far beyond football itself. The new leadership of Newcastle United has the opportunity to implement a strategic plan that allows the club to play diverse roles in fostering sustainable economic development while aligning with the United Nations’ Sustainable Development Goals (SDGs), which Saudi Arabia has also adopted.
Through sports and sports tourism, the city’s development can accelerate while raising awareness of critical social issues such as poverty reduction, health and education enhancement, and job creation. Lowering unemployment can also lead to a decrease in crime rates (currently 104 crimes per 1,000 people in Newcastle).
Newcastle is home to two major universities offering a wide range of vital fields, including renewable energy, petroleum, medicine, engineering, business, agriculture, law, technology, and computing. These universities also house research centers and host 13,000 international students from 130 countries. The city serves as an economic hub, particularly for technology and entrepreneurship. Saudi sports investment can create partnerships with these institutions to drive research and innovation that benefit both Saudi and British regions. These collaborations can also address global challenges such as climate change, reducing carbon emissions, ocean and marine pollution, and advancing alternative energy solutions—all of which are among the 17 UN Sustainable Development Goals.
The Saudi Public Investment Fund’s acquisition of Newcastle United also symbolizes economic strength and serves as a gateway for soft power and sports diplomacy. Global football clubs play crucial roles in their communities, and Saudi Arabia’s historical and economic influence, coupled with its longstanding relationship with the UK, signals a strong potential for success.
Sponsorship opportunities featuring Saudi Arabia and its global companies on Newcastle’s jerseys would increase the country’s brand visibility among football fans worldwide, particularly among younger generations and children. Additionally, securing stadium naming rights to feature “Saudi Arabia” while developing smart, eco-friendly training facilities and academies would establish “Saudi Stadium” as an iconic venue in Newcastle, frequently mentioned in global sports broadcasts.
English football clubs have significant roles in social responsibility, such as building community sports facilities, distributing sports equipment to local schools, and collaborating with academies to nurture young talent. Newcastle United could launch creative initiatives to engage with the local community, partner with Newcastle University on research projects that enhance the global sports industry, and boost the city’s local economy—all of which would positively reinforce Saudi Arabia’s national brand.
The Premier League, which broadcasts to over 188 countries, features 517 players, including 330 international players. The league’s multilingual and highly interactive social media platforms engage fans worldwide. Newcastle United’s expansion into summer training camps in East Asia and the Middle East—regions with high purchasing power for global club memberships and merchandise—would help grow the club’s international fanbase. By implementing a Pull-Push-Derive Strategy, Saudi Arabia could attract these passionate football tourists to Newcastle and then encourage them to visit Saudi Arabia.
Finally, the Saudi Public Investment Fund’s diversification into global sports investments strengthens Saudi Arabia’s national brand, attracts foreign and local investments, and enhances sponsorship opportunities at both the national and regional levels. A strong national brand leads to increased demand for Saudi products at higher price points and fosters a greater appreciation for Saudi culture, traditions, and history. Investing in the world’s most commercially powerful sports league contributes to these goals while boosting international tourism to Saudi Arabia. A stronger global perception of Saudi Arabia’s brand will encourage tourists to spend more when visiting the country and purchasing its products.
Published on 8 October 2021
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