Joe Kinnear used the program notes for yesterday’s game against Liverpool to show how Newcastle’s finances just couldn’t match those of the top six clubs in England, and the area Newcastle are really let down is in their commercial revenue, which is pitifully small, and this year will be only £17M, and that compares – as two examples to £64M at Liverpool and £53M at Spurs.
Mike Ashley – owner of Sports Direct and Newcastle
So why is the commercial revenue so low?
It’s good that the stadium is called St. James’ Park again, but when the ground comes on the TV screen you wonder why there are Sports Direct signs all over the place – on either side of the St. James’ Park sign at the top of the stadium – and on the leather seats in the dugout, and basically all over the place after that.
And it seems that one reason Mike Ashley bought Newcastle was to have a world-wide advertising facility – called St. James’ Park (and Newcastle) for his Sports Direct company.
So given our commercial revenue is so low, how much does Sports Direct pay Newcastle for all that advertising – we’d like to know – because they leave very little space in the ground for other companies to advertize.
We’ve said in the past that we assume Sports Direct are paying Newcastle for the advertising.
As an example Etihad Airlines are essentially owned by the same people who own Manchester City — and they pay £40M a year for that privilege – which is really a conflict of interest because that’s way over the going rates – but it’s an example of how much other clubs receive from sponsors.
George Caulkin of the Times tweets that Sports Direct should start paying for the advertising if Newcastle are to increase their commercial revenues, so if they are not paying Newcastle for that advertising – that’s probably illegal – and at best it’s questionable business ethics and would be taking advantage of Newcastle United.
So we’d like to hear from the club how much Sports Direct are paying for all that advertising – and Joe Kinnear should lay out what last year’s £14M was made up of.
If it doesn’t include money from Sports Direct that would be little short of a disgrace and a rip-off.
Enquiring minds want to know how much Sports Direct are paying Newcastle for all that world-wide advertising.