Newcastle In The Big Money In The Future


Newcastle have just signed a new deal with Wonga for their shirts, and the renaming of the stadium back to St. James’ Park, and it’s said the deal is the biggest ever signed by the club, and thought to bring in as much as £8M a year to the Newcastle United coffers.



But there’s a lot more money to be made in the near future by Newcastle.

The Premier League agreed a three year TV deal worth around £3.018B in the summer, for the domestic TV rights for the three years, starting next season.

That figure is a 70% increase over the last three year deal, which ends at the end of this season, and marks the English Premier League as the most popular sports league in the world, and certainly the richest.

BT were the surprise entry in the mix this time around, and they paid out £738M over three years for the 38 games they will show, and Sky paid out £2.28B for their 115 games.

The American sports channel ESPN, who are part of ABC and owned by Disney, were also in the bidding, but they missed out, having carried games over this last three year period.

Newcastle can make a lot of money by just staying in the Premier League, with the new deal made for the three seasons starting next season, being simply unbelievable.

The figures mean that the Premier League is being paid £6.5M for every one of their 154 live TV games each season, at a time when the world economy is in a sorry state, and the European economy is struggling, and entering into another recession.

The Managing Director of Sky Sports, Barney Francis, had this to say about the broadcasting rights:

“Broadcasting rights for Premiership football are particularly competitive now, it wasn’t particularly competitive 2 years ago. The market rate depends on how many buyers there are out there”.

Under the current deal, BSkyB (Sky Sports is part of this) paid out £1.6B to broadcast 115 matches,  but when the new deal kicks in it will see them paying out £2.28B for 116 matches over the next three years, so that’s an increase of almost 44% for BSkyB.

Whoever finishes bottom of the Premier League this season will pick up around £40M, that could well increase by 70% in the future, since that’s the total increase in money being paid for the games, so whoever finishes bottom next season could end up with as much as £68M,  which is 1.7*£40M.

Another way to put it is that Newcastle received £54.2M for finishing 5th last season, so if they finish in 5th position next season, we could could get around (1.7*£54.2), which is around £92M.

That’s big money indeed, and we think our figures are correct – and it assumes a 70% increase that clubs get in the next deal over the current one.

That really is big money.

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99 comments so far

  • jesperfuglsang

    Oct 15, 2012 at 11:05 AM

    Comment #1

    Repost

    Ibiza…sorry mate had to run earlier so didn’t have time to say good morning to you too mate

    …I honestly don’t know enough about Hooper to make a fair evaluation, although I don’t rate the SPL higher than the Danish Superliga (and I don’t rate Shane Long that high either)…come to think of it there isn’t really that many British forwards within our price range that I rate.

    But as you say if he’s cheap why not

    Santon…Honestly I cannot see our situation defense-wise is any different come Junuary than it was back in August. Can’ see how you have come to that conclusion.

    I think Simmo will be a discussion once again with his contract running out.

    About Fergy, I don’t think I have said he has been out on loan; I was talking about our youngsters and I said some a impressed me (Fergy, Sameobi and Bigi). I still think we should loaned out the majority of you youngsters and signed 2-3 players in August.

    I won’t change my ming one bit about that mate. That was my opinion back in the summer and still is.

    That is where I think the club has gambled (a gamble I wouldn’t had taken); but then again it is not my decision!

    JFA…http://www.victoriastation.it/

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  • Deadpool

    Oct 15, 2012 at 11:11 AM

    Comment #2

    Big money but we will never see any of it being spent on players. Just ‘reinvested’ back into the club.

    As I have said before many of you cannot see the problems that the financial fair play rules will bring.

    If clubs can only spend what they make then the top clubs can spend hundreds of millions still where as we can spend 10’s. It doesn’t do anything but monopolise football.

    There needs to be a cap on spending so that our fat owner actually gives us half a chance.

    Until then all the money will be given to the youth programme which will see all the promising youngsters nurtured, given a chance and the best ones being sold on for huge profit whilst we languish in mid table mediocrity until the day Ashley suffers a coronary or a decent offer for the club comes in.

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  • jawballsaswallwell

    Oct 15, 2012 at 11:13 AM

    Comment #3

    8 million a season and St James’ back you say Ed,. I’m starting shift a little uneasily on my high horse for some reason.

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  • davybtoon

    Oct 15, 2012 at 11:19 AM

    Comment #4

    All the Ashly haters keep goin on about any good player will b sold for huge profit were is your evidence of this?
    We sold Andy Carroll for 35mill tell me which football club/chairman/owner/manager wouldn’t have taken 35mill for Andy Carroll, he’s barely worth 12mill now let alone when we sold him Christ he’s gone out loan, tell me which other 35mil player in the world do u see being sent on loan within a season

    U all see say he never buys well our entire squad was bought by Ashly apart from the a few like harps, krul, staylor n shola

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  • spitfire_

    Oct 15, 2012 at 11:19 AM

    Comment #5

    54.2 mill only for finishing 5th? Is that with the money from live coverage or it’s only the money to take the 5th place in the end of the season? As you put it Ed, it sound like the second one.

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  • TOONROSE

    Oct 15, 2012 at 11:22 AM

    Comment #6

    I could be wrong but I don’t believe we received £54.2m for finishing 5th.

    As I understand it, we receive a percentage throughout the year depending on how many of our games are broadcasted on TV, along with a standard percentage for coverage shown on highlight-programs such as MOTD. In addition each team then receives an amount based on their final league standing.

    To the best of my knowledge, these figures range between £6-18m respectively. So whilst we may have generated £54.2m over the course of the year, it wasn’t simply for finishing 5th. Finishing 5th will have simply made the difference as to the final gross annual payout we received between £45m – 60m (approx).

    My point therefore being that the 70% uplift may not be on that total figure. It may simply be on the proportion of that figure that comes from live coverage and may not include the figure that each team receives for their final league standing.

    A bit pedantic, but hey, we could be talking £5-10m difference to what Ed has suggested, which is essentially 2 of Graham Carr’s Super Stars!

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  • Deadpool

    Oct 15, 2012 at 11:22 AM

    Comment #7

    Davybtoon

    The proof is in the method of the club we are following, Arsenal.

    The reason we have yet to sell for massive profit is in the fact we have not had the talent to sell at massive profit before.

    Now we have a treasure chest and we will see who ends up where in the summer of 2013.

    Andy Carrol was the start, it’s the Arsenal blue print without the quality of football and the challenging for honours.

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  • davybtoon

    Oct 15, 2012 at 11:24 AM

    Comment #8

    Of course top clubs will come in for the likes of ba, cabaye, hba, tiote but that’s bcoz there class players, and the question is will any club pay the top prices we will ask for them tiote been here 2 seasons now and the press n the doubters keep spouting he will b sold but yet 3/4 windows later he’s still a toon player
    Don’t really back up what ppl say about Ashly does it

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  • Sav

    Oct 15, 2012 at 11:25 AM

    Comment #9

    Its making the parsimony shown last summer in refusing to buy the defenders we need even worse. By the time the January window opens, we’ll have lost further ground.on that 92 million pot for 5th place.
    And Ed, I thought you were of the opinion that the Wonga deal was NOT particularly lucrative?

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  • davybtoon

    Oct 15, 2012 at 11:28 AM

    Comment #10

    Deadpool – we ain’t got the talent tiote, cabaye, hba n if its youth krul who is a product of our youth system

    As for challenging for titles or cups why is u lot fail to blame Shepard n hall who failed to seize the moment in the 90s when we could of become the dominant force in English football that was our chance n they blew it big time

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  • Dannyo

    Oct 15, 2012 at 11:31 AM

    Comment #11

    We got relegated unde MA, right, that obviously leaves scars.
    But the last 3 years we’ve improved facilities, youth setup, players, finances and results on the pitch.
    Yes, we got relegated and he changed the name of our stadium, both which has been rectified, with interest.

    Why the massive hostility? Why not take a season at a time instead of a window, game, whatever, before one decides to judge?

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  • davybtoon

    Oct 15, 2012 at 11:32 AM

    Comment #12

    But let’s face it with kk in charge we were never gonna win the prem the guy is serial bottler, he is master at getting clubs promoted but that’s it
    Shepard should of moved heaven n earth to get sir bobby in earlier n we would of won the league with him

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  • davybtoon

    Oct 15, 2012 at 11:36 AM

    Comment #13

    Dannyo can you really expect fans who hate Ashly to take it a season at a time when there way is best after all the have such a great track record of thinking they knowing what is best turning on sir bobby when were top6, turning on kk when he sold cole
    Yes these are the same fans who now call Ashly u know what there major problem is they thought they had voice bcoz if they moaned Shepard responded now no own listens to them they don’t like it

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  • q8igeordie

    Oct 15, 2012 at 11:39 AM

    Comment #14

    im with davybtoon on this one…..i dont get all the ashley haters out there …. since i started watching the toon … this is the best team we have had… imagine this team under sir bobby.. although pardew is a decent coach

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  • q8igeordie

    Oct 15, 2012 at 11:40 AM

    Comment #15

    @13 agree … the same fans were a major reason for our relegation …

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  • Wor Shearer

    Oct 15, 2012 at 11:41 AM

    Comment #16

    So does this mean we can a new CB in January….? or will Lambsass tell us we still don’t have any money?

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  • q8igeordie

    Oct 15, 2012 at 11:42 AM

    Comment #17

    lambias has been talking sh*t since he has been here… but we never missed a window without buying atleast one player

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  • davybtoon

    Oct 15, 2012 at 11:44 AM

    Comment #18

    And for anyone who can’t understand why Ashly is trying to run the club properly just look at the wonga deal 8mill a season our biggest in the clubs history. Well man utd have training kit sponsor bigger than our shirt seal, they’ve just signed a shirt deal worth £350mill over 7year

    We’re a big club in this country but were small club over the world n ppl wonder why pardew says we can’t compete financially jus look at those figures that’s why, where no even close to likes of man utd n co with terms of finance they can bring in world wide

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  • davybtoon

    Oct 15, 2012 at 11:55 AM

    Comment #19

    I mean come on the Ashly haters go on about the kk n shepard era like it was some great era we played good football n that was it we won the championship n had European football well guess what under Ashly we’ve won the championship n got European football he’s achieved exactly the same as that great period everyone goes on about

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  • q8igeordie

    Oct 15, 2012 at 11:57 AM

    Comment #20

    they always hide after talking so much sh*t

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  • jesperfuglsang

    Oct 15, 2012 at 11:58 AM

    Comment #21

    But Davy…Spurs bring in more than twice as much as us in revenue and Liverpool more than three times the amount. Surely than ain’t right?

    …nobody over here cares about Spurs (globally I cannot see them being a bigger brand than Newcastle)

    I don’t know if the Wonga deal is great or not, but £8M sounds a bit low for both shirt and nameing rights! Don’t you think? And since Big Fat Mike won’t remove the SD logo from SJP, maybe he should pay as anyone else. He is a bit of a hypocrit if you ask me.

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  • davybtoon

    Oct 15, 2012 at 11:58 AM

    Comment #22

    Oh and yes Shepard n hall sold all our best players so stop acting like its something that only happens under Ashly, yes Shepard bought players but over rated over paid over the hill players which eventually cost, we now spend smartly n young talented hungry players

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  • q8igeordie

    Oct 15, 2012 at 12:03 PM

    Comment #23

    @21 .. i heard that they removed the SD signs … they went back to St James

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  • davybtoon

    Oct 15, 2012 at 12:03 PM

    Comment #24

    Jesper – some of our fans need to take there head out the sand when comes to how big they think we are.
    Yes we our huge n we have the potential to be one of the biggest I agree with all that but like u say spurs, Chelsea, arsenal, man city n man utd a miles ahead of us in terms of deals for cash were no even close, even Sunderland shirt deal is 12mil more a season than ours how is that right, bcoz when brands look at us they think we’re advertising to 50,000 were as brands look at those other teams n think we’re advertising world wide bcoz they have world wide fan base

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  • q8igeordie

    Oct 15, 2012 at 12:04 PM

    Comment #25

    8 mil a season would get us 2 tiotes.. or two cabayes .. or even 8 demba bas

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  • NEWEXPATMAGPIE

    Oct 15, 2012 at 12:10 PM

    Comment #26

    Will surprise if any of this Money is re-invested in the Club !

    Only last week we had Llambs Arse saying that their would less money spent on Transfers! We will have to make do with the Purple players we already have?

    All this big money coming in will go to making Fat Ashes Profit Margins bigger than they already are !

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  • q8igeordie

    Oct 15, 2012 at 12:13 PM

    Comment #27

    @26 they said the same thing last year … we bought cisse for 8-10 mil .. and most of you were saying the same thing last year … you guys are like a broken record that always repeats itself ..

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  • davybtoon

    Oct 15, 2012 at 12:16 PM

    Comment #28

    Q8igeordie – exactly they say the same things all the time, then when it doesn’t happen they go missing from the blog until there is a defeat they can moan about or something, they’ve said tiotes gone for the last 4 windows n he’s still here

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  • q8igeordie

    Oct 15, 2012 at 12:19 PM

    Comment #29

    ashley and co are doing alot of right things … but they are also getting some decisions wrong …. they will learn from these of field mistakes… aslong as our team are progressing .. wether with 1 mil spent or 50mil spent .. i will back the team … and certainly i will back our chairman and owner

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  • q8igeordie

    Oct 15, 2012 at 12:23 PM

    Comment #30

    the last 15 years were great but we werent progressing as a team … but now, with ashley and co., there seems to be a desire to progress and make NUFC a global brand that it should be … now if ashley decides to sell in 5 years time.. no broke man or woman would buy NUFC, unless they were insanley rich … always look at the bright side 🙂

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  • beefman13

    Oct 15, 2012 at 12:29 PM

    Comment #31

    MA owns our club he put the money down he makes the choices.

    we were in massive debt no doubt about that he has recovered that debt with an interest free loan that if he had of financed it privatly to some company would be costing us near the sponsorship money we are getting.

    So its ok when we are in massive debt and he pulls us out of it, and stops us going in to admiistration.

    but when things start looking Good at NUFC everyone wants to know which bank account MA is hiding all the money we are bringing in

    All moneys brought in to sjp will show on any audit that is going to take place, you build the business from within itself as Arsenal have done and you keep turning over playing staff maybe every 4/5/6 years but get max value from then first.

    We will do that expect some of our better players now to be gone within 2/3 seasons and we then fill their places with players who will be scouted to replace the ones left but will have that fresh hunger, while making big profits on the players that have left just as Arsenal do.

    Now how ever much MA walks away with eventually at the toon im not bothered as a plan was concieved and followed hopefully that meant we got to watch consistantly a top of the table team entertaining us be it in a sat, sun, mon, thursaday, or even tues and wed meaning champions league.

    Anything is possible with this system. for three seasons it has bared fruit why not continue on the up slope everyone at the club believes that and i do as well.

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  • jesperfuglsang

    Oct 15, 2012 at 12:31 PM

    Comment #32

    Davy…that ‘unwashed’ shirt deal does surprise me! We need to be in Europe every year if we want to change how thw world sees our brand don’t you think!

    Q8…SD logo is still visible from within SJP and from bird eye view (and still for free)

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  • q8igeordie

    Oct 15, 2012 at 12:35 PM

    Comment #33

    the wonga arena

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  • Transfer Sage

    Oct 15, 2012 at 12:35 PM

    Comment #34

    Beefman

    Although I agree it was a good move by Ashley to replace bank loans with a personal interest free loan it isn’t a selfless deed.

    If nufc we paying interest and getting into further debt it would hurt him as well.

    As he owns the club he is paying bills and therefore he has basically just saved himself money, not just he club.

    If nufc goes under or racks up huge bills it comes out of his assets.

    So while I am glad he did this as it saves a reported 10 mil a year it isn’t out of the goodness of his heart, it’s to save himself money.

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  • Rotonda heights

    Oct 15, 2012 at 12:35 PM

    Comment #35

    Great to follow the arsenal blueprint. trouble is we need an arsene wenger who’s done it for 15 years+

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  • NEWEXPATMAGPIE

    Oct 15, 2012 at 12:36 PM

    Comment #36

    I,m still on the Blog ! And am not going any-where!

    I,m more positive than most on here ! And my Record aint broken? No amount of name calling or insult is going get me to give up the Blog or indeed the Club i,v supported since i was a Nipper !

    Lets just wait and see what happens in January eh!

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  • ramboreilly

    Oct 15, 2012 at 12:37 PM

    Comment #37

    I have never heard so much crap in all my life davytoon.We all know what the halls and shepheards failings were,with the mediocre players we brought in,and the debt that was acrued.But to say that that whole period was a massive failure is pathetic.That 10 year period got us promoted,a whisker away from winning the league and in the top six seven times.We were only out of Europe once,and playing the best football we have ever played.
    A football stadium also had to be rebuilt almost from scratch as well as a training ground from scratch,we still have a long way to go to match those acheivments.

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  • Ian Magpie

    Oct 15, 2012 at 12:37 PM

    Comment #38

    Davy…………… Sunderland a world wide brand????????? er I think not and as for Ashly and Co matching what the Shepheard and KK era did??? Again have we finnished prem runners up twice, FA cup runners up twice, Champions league etc etc etc1 Dont be so harsh on what the club achieved in the 90’s era. Yes the spending policy nearly broke us but you forget it also got us where we are today. Just look at the stadium around you. That was a result of the 90’s era! All that achieved from nothing! I went to games when we had 16,000 attendances and the club was on its knees! I was at Derby County away when we got stuffed 4-1 and we were on the brink of oblivion! I realise the financial legacy that was left was awful for the club and Ashley deserves some credit for stabalising us. But dont be so fast on knocking the 90’s era!

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  • q8igeordie

    Oct 15, 2012 at 12:40 PM

    Comment #39

    @36 i dont think anyone insulted you … but if i did, then sorry.. it wasnt meant

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  • jesperfuglsang

    Oct 15, 2012 at 12:41 PM

    Comment #40

    Rotonda…one important thing we still need to do to be sucessful with the Arsenal model is buying our replacements before we sell (hence the Ba and Simmo situation just to name a few),

    …in my book we are trying to copy Arsenal the Everton way (a bit difficult and very time consuming if you ask me). But we seem to have stability fot now and that’ll make happy for now 😉

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