Manchester United Old Trafford decision sends £2bn message Newcastle United chiefs can't ignore

The next few months will see Newcastle United decide whether to stick or twist when it comes to the redevelopment of St James' Park or a shiny new stadium elsewhere. Down the road in the north west, Manchester United have pulled the trigger on that very decision, opting for the latter.

Tuesday morning brought the announcement that the Red Devils intend to build a new, 100,000-capacity stadium on the existing Old Trafford land in the near future. The project is estimated to cost a whopping £2bn but could be finished in the next five years.

Earlier this year a task force was asked to look into the benefits of both a new build and a redevelopment. The report concluded both options would “deliver transformative benefits for the club as well as Trafford and beyond” but those benefits would be “amplified under the new build option”.

These are the type of decisions Newcastle are currently grappling with. An expanded St James' Park would see more bums on seats on a matchday but a new location entirely would give both the club and the city a significant revenue boost due to the attendance capabilities and the increased footfall around the venue before and after matches.

Newcastle United chief Brad Miller recently admitted: "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.”

Old Trafford, like St James' Park, is an iconic venue - and one which already ranked as one of the country's biggest in terms of capacity and history. Yet, Manchester United chiefs believe the future will be brighter by going even bigger - despite a wealth of harsh budget cuts at the club since Sir Jim Ratcliffe's INEOS bought a minority stake in the club last year.

“Today marks the start of an incredibly exciting journey to the delivery of what will be the world’s greatest football stadium, at the centre of a regenerated Old Trafford,” Ratcliffe, the club’s co-owner, said upon the stadium announcement.

“Our current stadium has served us brilliantly for the past 115 years, but it has fallen behind the best arenas in world sport. By building next to the existing site, we will be able to preserve the essence of Old Trafford, while creating a truly state-of-the-art stadium that transforms the fan experience only footsteps from our historic home.

“Just as important is the opportunity for a new stadium to be the catalyst for social and economic renewal of the Old Trafford area, creating jobs and investment not just during the construction phase but on a lasting basis when the stadium district is complete. The government has identified infrastructure investment as a strategic priority, particularly in the north of England, and we are proud to be supporting that mission with this project of national, as well as local, significance.”

Interestingly, Manchester Mayor, Andy Burnham, has had his say - and his comments echo the type of stance Newcastle's Public Investment Fund [PIF] would take with any new project on Tyneside. The message is: This club should have the very best facilities in world football.

“Our common goal on the Task force has been to try to unlock the full power of the club for the benefit of its supporters and for Greater Manchester as a whole - creating thousands of new homes and jobs," Burnham said. "If we get this right, the regeneration impact could be bigger and better than London 2012.

"Manchester United could, and indeed should, have the best football stadium in the world. To me, that means a stadium that is true to the traditions of the club, affordable to all, with nobody priced out, and a stadium that sets new standards in the game globally. I believe this vision can be realised, and if so, the benefits for Greater Manchester, the North West and the country will be huge.”

Newcastle are expected to make their own stadium decision in the coming weeks, with fans at the heart of any final decision. Two proposals have been drafted and shown to PIF, who will have the final say on the matter.