Positive Talks In China For Commercial Growth – They’re Needed

The Chronicle is reporting today that Newcastle Managing Director Lee Charnley has been doing some business in China and the club are apparently looking to China to increase our commercial revenues.

It’s an area of Newcastle’s financial portfolio that have never performed well in the past – at least not compared to other top clubs in England.

Lee is reported to have returned from his trip to China last week when he took with him a full Newcastle delegation.

Lee Charnley – Newcastle’s Managing Director

Newcastle will be keen to sign a few commercial contracts in the far east with football starting to grow exponentially in China.

A deal to get sponsors for the strips is said to be very close, but we don’t know if that will be a Chinese company or not – but it could be.

This is the revenue split for the last reported financial year – July 1st 2014 through June 30th 2015 and the figures are in £M.

You can see from above the commercial revenues were similar to the match-day revenues with those match-day revenues becoming an ever smaller percentage of our total revenues.

The vast amount of revenue  now comes from broadcast which includes the Premier League money.

Of course we only get the full amount of that when we are in the Premier League – which is not for this financial year.

Even when the new financial figures come out shortly, they will be for the financial year through June 30th last year so they will not show the dip in revenue from being in the Championship.

Those will only be seen during the current financial year which ends on June 30th – when hopefully we will have been promoted back to the Premier League.

The Chronicle is reporting that the meetings last week were positive and that talks included potential commercial deals.

There were also discussions with Chinese clubs about potential friendlies with Newcastle United in the future.

The bottom line here is that it’s good that Lee Charnley and others are looking to see how we can increase the commercial revenues at the club – and be able to afford more world-class players for Rafa Benitez!

Comments welcome.