Newcastle need to generate more revenues, if they are to be able to live with the best teams in England and Europe.
Mike Ashley and Derek Llambias
That’s certainly true, but as we have mentioned on the naming right of St. James’ Park, certain things should be untouchable and that’s one of them.
With Chelsea, Liverpool and Manchester United not yet selling the naming rights of their grounds, their revenues are much more than Newcastle’s, so there have to be other streams of revenue the club can go after.
One of them is the shirt sponsor, and since the Northern Rock agreement runs out in the summer, there is pressure on Derek LLambias, Newcastle top executive officer, to get a new shirt deal before the end of the year.
Derek would like to link that with the renaming rights, and wrap both things up with one sponsor. But does that mean the name of the ground will change every few years once new contact are negotiated for the naming rights?
Heaven forbid if that happens.
We are hoping that Newcastle revenues for the financial year ended last June 30th will be close to £100M, but other clubs have much bigger revenues at present and Newcastle have been left behind over the last few years, as the club struggled with relegation.
For the finincial year through June, 2010 Manchester United made £362M and Arsenal made £215M and Chelsea made £200M. In the same period the Newcastle revenue had dropped to £38M, because we were in the second division and didn’t get as much PL TV revenue.
This is what Derek LLambias said on getting a new shirt sponsor:
“I need to find a new shirt sponsor by the end of December – and that’s the latest,” “Puma need to put the shirt sponsor on, they’re manufacturing, and they would like it last month.”
“I’ve got a very small window to sell the shirt and naming rights and, if I have to sell them separately, then I have to sell them separately. But we must give ourselves the opportunity; this is inviting people to come in.”
One area where Newcastle can increase their revenues is qualifying again for Europe, and with our current position in the league, there has to be a decent chance that Newcastle can get into European competition next season.
That’s one reason we think we’ll see the Newcastle squad being strengthened in January in various areas, including defense, midfield and up front.
What do you think?
Our poll on the renaming controversy is still open, and currently with over 2200 votes in, 64% oppose it, 25% are for it, and the rest are undecided – you can still vote here.