Breaking news- Newcastle announce one of three new off-pitch deals as £120m masterplan begins
Newcastle United has unveiled a significant commercial agreement that is intriguingly part of a broader strategy within the Premier League. This marks another milestone for the Toon Army, who have become unusually familiar with their club’s sponsorship deals compared to other Premier League fanbases. The reason behind this familiarity is the crucial role that commercial revenue plays in Newcastle’s long-term strategy to harness the vast resources of the Saudi Public Investment Fund (PIF). Unlike matchday income and television rights, commercial revenue has fewer restrictions, making it a vital component for increasing funds directly available to manager Eddie Howe.
In the three years since PIF took control of Newcastle, the club’s commercial revenue has skyrocketed from £21 million in the 2020-21 season to £47 million in 2022-23. This upward trend is expected to continue, with further increases anticipated in the 2023-24 and 2024-25 financial reports. Much of this growth can be attributed to new partnerships, such as those with kit manufacturer Adidas and front-of-shirt sponsor Sela. Additionally, the club garnered approximately £10 million from a bespoke Amazon documentary. However, these are just a few examples among Newcastle’s 13 commercial partners, highlighting a broader trend within the Premier League.
In a similar vein, Tottenham Hotspur and Wolverhampton Wanderers have also joined Newcastle in establishing extensive sponsorship networks. Last season, Newcastle teamed up with betting brand BetMGM. Following what Newcastle’s chief commercial officer Peter Silverston described as “an exceptional first year together,” the partnership has been renewed and strengthened. The new deal will enhance BetMGM’s signage at St James’ Park and allow them to sponsor content and fan experiences. Notably, BetMGM has also secured deals with Tottenham, becoming their primary training kit sponsor, and Wolves, serving as their betting partner. It is estimated that BetMGM is currently investing over £120 million annually in marketing efforts to solidify their presence in the UK market.
The absence of a specified duration for the Newcastle-BetMGM deal is promising for the club’s future renegotiations. This strategic partnership underscores the potential financial benefits Newcastle can reap from commercial sources. The club’s new agreement with Adidas is reportedly worth around £30 million per year, while Sela contributes £25 million annually as the front-of-shirt sponsor. These deals represent significant increases from previous partnerships with Castore and Fun88.
While there is theoretically no upper limit to Newcastle’s commercial ambitions, all deals must comply with the Premier League’s fair market value test. Nevertheless, the club’s commercial revenue is projected to exceed £80 million in the 2024-25 season, potentially setting a record for clubs outside the traditional ‘Big Six’. Despite the substantial gap between this elite group and the rest of the league, Newcastle is determined to bridge it and establish themselves as a major force in English football.
