The Reuben Brothers are the junior partner to the Saudi Public Investment Fund at Newcastle United, but they still exert considerable influence.
The Reuben Brothers currently own 15% of Newcastle after acquiring a portion of the team after Amanda Staveley and Mehrdad Ghodoussi left the boardroom last month.
Even while the Reuben Brothers’ fortune is little compared to PIF’s (as it is for almost all private companies worldwide), their net worth is still a staggering £25 billion.
In theory, they are now the second-richest Premier League owners, only surpassed by PIF.
Although that is oversimplifying the situation, it does show how powerful and affluent David and Simon Reuben are.
The IT and real estate moguls have now forged a novel agreement that may help Newcastle in their endeavor to spend heavily under PSR.
Reubens Brothers investment can help boost Newcastle’s commercial income
The Profit and Sustainability Rules of the Premier League permit Newcastle to lose up to £105 million over a rolling three-year period.
Up to June 30, 2024, they dabbled with the very top of that threshold, just making it under it because of the reluctant sales of young people Yankuba Minteh and Elliott Anderson.
Newcastle will always spend the maximum amount permitted by PSR, according to CEO Darren Eales, which implies that in order to increase their spending cap, they must increase income.
One area where they have excelled under PIF is commercial income, with earnings from events, merchandising, and sponsorship nearly tripling over the Mike Ashley period.
Newcastle is predicted to report commercial income of £80 million when they issue their 2023–24 financial statements.
This category includes the club’s content strategy, which is significant given that Man City credits their content strategy for a large portion of their commercial success.
Newcastle is presently employing a new head of content, who will manage this division and curate promos, behind-the-scenes footage, and other material.
Additionally, Reuben Brothers has just finalized an agreement to purchase the media studio EDGLRD, as reported by Bloomberg.
The Reuben Brothers’ money will go toward producing content for “movies, video games, advertising, interactive content, social media, music, fashion, hospitality, and sports,” according to American producer Harmony Korine, who oversees the studio.
Additionally, it is probable that Newcastle and Adidas will work together in some capacity, given the popularity of their material centered around the new Adidas kit partnership ahead of 2024–25.
How much can Newcastle spend under PSR?
Newcastle does have some leeway because its £70 million deficit in 2021–2022 is no longer factored into their PSR calculation, as Eales admitted during a recent news conference.
The Magpies still don’t have a lot of space, though, especially considering that it looks like they won’t be selling any of their best players this summer.
It’s possible that Newcastle is holding off on selling players until January so they can evaluate their financial situation for the upcoming season.
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