For many years now the Newcastle commercial revenues have trailed woefully behind that of other big clubs as we have struggled in the Premier League and finally were relegated for the second time in seven years last summer.
The last shirt deal (which is part of commercial revenues) was not well accepted at all by Newcastle fans and it was with Wonga and reported to be £24M over five years and that deal finally ran out this year.
The new deal that has been announced in with Chinese gaming company FUN88 and the Chronicle is reporting the deal is the best one we have ever had and it’s £24M over three years which is £8M/year compared with about £4.8M/year for the Wonga deal which previously was the best ever.
But this deals pales in comparison with the big clubs – Barcelona get £120M/year from Nike for their shirts and Manchester United struck a deal with Chevrolet for £75M/year and a full five years ago Arsenal did a deal for £30M/year with Fly Emirates.
So we are miles behind the top clubs but that could change quickly in three years if Rafa Benitez takes us to some success over the upcoming seasons.
That’s also likely the reason Newcastle restricted this deal to only three years because with any success Newcastle should be able to get a much better deal in 2020.
The Newcastle deal is also with a Chinese company FUN88 and there is tremendous interest in China with football and the Premier League is expected to become massively popular in future years.
These are the revenues reported for our last financial year through last June 30th and commercial revenues are the lowest of the three segments that make up the total Newcastle revenues each year.
This is the segment that has to grow substantially with match day revenues not really able to increase very much in future years because of the limited attendances set at just over 52,000 at St. James’ Park for each home game.
What do you think?