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Seems a big upgrade but also modest.

 

As much as I want us to be loaded. I also don't want us to flout the rules. Give nobody an excuse.

 

It's a good starting point.

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1 minute ago, STM said:

Seems a big upgrade but also modest.

 

As much as I want us to be loaded. I also don't want us to flout the rules. Give nobody an excuse.

 

It's a good starting point.

Understand it's only a 2 year deal, so gives a decent boost to current numbers but also will not be long to arrange a bigger deal once hopefully two seasons of CL football are under the belt to justify a bigger number. Apparently there was an offer of 22m for 5 years on the table too so this seems like a good outcome I think. 

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Imagine we get an extra 1m for every extra CL game we play or 500k for every extra cup game.... I don't know if how these things work but you would imagine our bosses know their onions.

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Newcastle United have agreed a new shirt sponsorship deal worth an estimated £25 million a year.

The Times understands that the new deal is with a company from another Middle Eastern country rather than Saudi Arabia.

Officials at St James’ Park plan to unveil the new commercial partner, who will replace Fun88, a betting company whose agreement with Newcastle predated the £305 million takeover in October 2021 and was worth less than £8 million a year, next month. Newcastle struck an agreement with Fun88 last year to end their front-of-shirt sponsorship two years early.

Newcastle sources insist that the new agreement with a company from the Middle East will fall inside the Premier League’s “fair market value”, a regulation that was introduced in December 2021 to counter any potential commercial dealings the club undertook after Saudi Arabia’s public investment fund (PIF) took an 80 per cent holding in the club in October of that year. PIF is a sovereign wealth fund with an estimated worth of about £700 billion.

The sponsorship announcement is seen as a further boost for Newcastle, who moved closer to Champions League football for the first time in 19 years with their 6-1 defeat of Tottenham Hotspur at St James’ Park on Sunday and their 4-1 victory against Everton on Thursday evening at Goodison Park.

Newcastle are third in the Premier League, eight points clear of fifth-placed Tottenham with a game in hand and a superior goal difference.

Champions League football would guarantee the club at least £50 million from participation, prize money and the TV pool as well as opening up new commercial possibilities as a result of much greater exposure. That figure will be higher if they advance beyond the group stage in the competition.

Newcastle are also set for a further boost of £35 million in revenue because of their success this season under Eddie Howe. Newcastle will have featured in live games on 30 occasions by the time this season ends, giving them a facility fee of £34.3 million, a significant increase from last season’s £19.8 million, and their merit payment, if they were to remain in third position in the Premier League table, would be about £17 million higher than for the previous campaign.

Those are transformative figures, allied to a new front-of-shirt sponsor, with Newcastle potentially boosting their £180 million turnover by about 50 per cent.

It will be crucial to the summer transfer plans for Howe, the club’s sporting director Dan Ashworth and Steve Nickson, their head of recruitment, as they prepare for the club’s first European campaign of any description in a decade.

Howe said last week the club had been working to three different summer strategies, one in the Champions League, one in the Europa League and one in the Europa Conference. His side have won twice since then and have recorded six victories in seven games. Bookmakers have placed them at 6-1 on to finish their first full season since the club’s takeover in a top-four finish and qualify to play against Europe’s elite.

Newcastle hope to add five players to their squad this summer, with the long-term target James Maddison back in their sights, along with James Ward-Prowse. Both players could be relegated with their present clubs, Leicester City and Southampton respectively, deep in relegation trouble with only five games of their campaigns left.

Newcastle want to sign two midfielders, a left back and a central defender as well as another forward. Commercial deals like the front-of-shirt sponsorship they are set to announce will increase further the spending power of the club in the summer.

Newcastle have spent £250 million in the three transfer windows that followed the take-over by PIF, Amanda Staveley’s PCP Capital Partners and RB Sports & Media. They broke the club’s record transfer to sign Alexander Isak last summer and spent £40 million on Bruno Guimaraes and £35 million on Sven Botman.

There has also been £5 million spent on a redevelopment of the club’s training ground at Benton, including the building of a hydro-therapy pool. The club are still looking for land to build a facility that will eventually house the first team, the academy and the club’s women’s team.

Newcastle have six games left to cement their Champions League position, the first time the club would qualify for the tournament since Sir Bobby Robson was manager in 2002-03, and they face bottom-of-the-table Southampton at St James’ Park on Sunday.

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1 minute ago, bowlingcrofty said:

Why does it matter if it falls within “fair market value” if it’s not a related party transaction?

 


I think all sponsor deals have to pass fair market value. 

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1 minute ago, Kanji said:


I think all sponsor deals have to pass fair market value. 


Why though? That rule was brought in basically so we didn’t sponsor ourselves through the back door. If it’s not a RPT then surely fair market value is whatever someone is willing to pay.

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