Newcastle United’s lucrative deal priority to boost transfer power as FFP window to reset
Securing a training kit sponsor is a significant priority for Newcastle United’s commercial team as they strive to enhance the club’s revenue streams.
Newcastle United has not had a front-of-shirt sponsor for their training wear since the previous deal with FUN88 concluded last year. That agreement, established during the Ashley era, bundled both the match kit and the training kit into a single package.
With the recent collaboration with Sela, Newcastle United now has the flexibility to sell the training kit space to a different brand, following the strategy of their Premier League rivals.
For example, Manchester United earns approximately £20 million annually from their partnership with Tezos.
A significant portion of the value in these sponsorship deals comes from social media and YouTube exposure, as much of the content released by clubs in the days leading up to a match is from the training ground.
Although Newcastle United’s overall social media following may be smaller compared to some other Premier League clubs, they boast the highest average engagement across the league’s top-flight channels, a noteworthy statistic for potential sponsors.
Peter Silverstone previously highlighted that securing a training kit sponsor was a ‘top priority.’ Additionally, CEO Darren Eales confirmed in January that the club was actively seeking sponsors for both the training kit and the training ground.
It’s important to note that the new financial year begins next month. This marks the reset period for profit and sustainability calculations, starting from the 2022-23 season in a new three-year rolling cycle.
This period will encompass the lucrative deals Newcastle struck with Adidas and Sela, which were not included in last year’s accounts, as well as the estimated £37 million-plus earnings from their participation in the Champions League.
Increasing commercial revenues is crucial for Newcastle United as it directly impacts the club’s ability to spend on player transfers.
The more revenue generated from sponsorship deals and other commercial ventures, the greater the financial flexibility for investing in new talent.
By securing a dedicated training kit sponsor, Newcastle United can significantly boost their revenue, thereby enhancing their competitiveness in the transfer market and strengthening their overall financial health.
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