Newcastle eyeing £165m bonanza amid bold prediction from exit-bound Amanda Staveley
Newcastle United is poised for a significant revenue boost, leveraging a key strategy championed by outgoing director Amanda Staveley. This move comes as the club seeks to enhance its financial stability and competitive edge.
Amanda Staveley’s Impact on Newcastle United
Amanda Staveley became the public face of the Saudi Public Investment Fund’s (PIF) takeover of Newcastle United in 2021. After the deal was finalized, she joined the board alongside her husband, Mehrdad Ghodoussi.
Staveley has since played a pivotal role in revitalizing Newcastle’s commercial operations, which had stagnated under previous owner Mike Ashley.
One of the primary objectives under Staveley’s leadership has been to boost revenue through improved sponsorship deals and diversified income streams. This focus is crucial as the club navigates the constraints imposed by the Profitability and Sustainability Regulations (PSR).
While television revenue remains the primary income source, generating £165 million from broadcasters in the 2022-23 season, the club aims to increase this figure significantly with its participation in the Champions League.
A potential game-changer for Newcastle United and other Premier League clubs lies in adopting a direct-to-consumer (DTC) model.
As quoted by Chronicle Live, Staveley advocates for a “direct-to-consumer model” as the future of sports broadcasting. This model, similar to streaming services like Netflix, offers a promising alternative as traditional TV rights begin to plateau.
The recent developments in France’s Ligue 1 provide a case study for this transition. Facing difficulties in securing a TV deal for its upcoming five-year rights cycle, Ligue 1 is considering a DTC streaming service as a contingency plan.
If successful, this model could pave the way for the Premier League to follow suit, potentially increasing broadcast revenue for clubs like Newcastle United.
Enhanced TV revenue through a DTC model could significantly impact Newcastle’s financial strategy, particularly under the PSR system.
Every additional penny earned can be reinvested in the club’s recruitment budget, crucial for maintaining competitive performance. While the club narrowly avoided a PSR breach for the three-year period up to 2023-24, further adjustments will be necessary to ensure compliance in 2024-25.
In the short term, Newcastle may need to consider player sales to balance the books. However, the anticipated increase in TV revenue will provide a sustainable financial foundation moving forward.
The club is expected to announce a revenue of around £300 million for 2023-24, with over half of this coming from broadcast streams. This financial boost will be essential for Newcastle as it seeks to enhance its squad and achieve long-term success.
The impending changes in Newcastle United’s ownership and revenue strategies mark a critical juncture for the club. As Amanda Staveley and Mehrdad Ghodoussi step down, their successors will inherit a robust framework for continued growth.
By embracing innovative revenue models like direct-to-consumer broadcasting, Newcastle United can secure its financial future and remain competitive at the highest levels of football.
