£24M Deal Is Good For Newcastle – But Woefully Lags The Big Clubs


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?

Comments welcome.



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147 comments so far

  • G

    May 17, 2017 at 2:47 PM

    Comment #1

    Even though we have a good overseas following, we don’t sell anywhere near as many shirts as the teams regularly in the Champions League, so I guess the figure paid is fair enough. If we can win a couple of trophy’s over the next few years under Rafa, then hopefully the next sponsorship deal will be an absolute doozy!

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  • Charlie in the Gallowgate

    May 17, 2017 at 3:21 PM

    Comment #2

    Bit unfair comments – at the moment we are not in the same league as Barcelona, Manure Utd, arsenal et-al.

    We have got to crawl/walk before we can run – not that I was keen on Wonga and not keen on the sponsors being a betting company it is a step in the right direction.

    When the club can guarantee playing in the Premiership season after season getting into Europe and WINNING something and getting World wide coverage then we might be able to command a lot higher price for sponsorship

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  • YoungMagpieFromBurnley

    May 17, 2017 at 3:24 PM

    Comment #3

    YoungMagpieFromBurnley
    May 17, 2017
    I like Clark aswell Carl, but I prefer Lascelles. Granted Clark has been the better performer over the course of the season in ‘our’ eyes. According to other footballers Lascelles was better, and I’m going to view there’s opinions in a better light. We can’t forget Lascelles was playing through a bad injury for 4 months for the cause of our team, I never even noticed. Lascelles also has premier league experience and was our best performer during our late surge in the premier league the season before last. Clark in my eyes would be competition with Dummett in a back three on the left hand side; Although Rafa is probably going to stick with his preferred 4-2-3-1 formation. In which case I believe Clark will be third choice centre back next season. Granted Maguire or Wes Morgan sign. Lascelles is captain, and in my opinion he is going to stay it through next season, he’s earned it.

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  • Charlie in the Gallowgate

    May 17, 2017 at 3:25 PM

    Comment #4

    Further to my comments pity we cannot get a local sponsor – trouble is not very many large international companies in the area – Would be quite amusing if we had secured a mega deal with Nissan – gan doon with the mackems well

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  • lesh

    May 17, 2017 at 3:32 PM

    Comment #5

    Now if SD were to pay fair market rate for its advertising in SJP, that’d make a nice contribution to the Club’s finances.

    Come on Mikey boy, I’m sure the SD board’d agree.

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  • jazzyp

    May 17, 2017 at 3:39 PM

    Comment #6

    Youngmagpie

    Work in and around Leicester and know quite a few lads that go to the games.
    Wes Morgan has lost his pace mate and would be like signing Sol campbell again.

    No thanks

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  • Ibizatoon

    May 17, 2017 at 3:42 PM

    Comment #7

    Lesh…But that would mean Ashley actually WAS giving us an interest free loan!

    Novel idea.

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  • geordiesteve520

    May 17, 2017 at 3:53 PM

    Comment #8

    I never understood why we never thought about a deal with Siemens when it was based at Silverlink. They are a behemoth of a company, would’ve made a statement.

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  • jazzyp

    May 17, 2017 at 4:05 PM

    Comment #9

    Marseille winger Florian Thauvin and his entourage will meet with the club immediately after the season ends to open talks over a contract extension and a wage hike, according to Foot Mercato.
    The 24 year old has enjoyed the best season of his career to date, scoring 15 goals in Ligue 1.

    Have they actually signed him from us yet and paid the wonga ??

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  • Ibizatoon

    May 17, 2017 at 4:11 PM

    Comment #10

    jazzy…From what I understand (which is probably from here, so you know, take it with a pinch of salt) is that there was a number of games played clause, which he did, so therefore the transfer was automatic and he is an official Marseille player.

    Not sure about the payment mind. Given the clubs low opinion of him when he went out on loan and being worried about recouping funds from him, they may have agreed to stage payments, perhaps.

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  • jazzyp

    May 17, 2017 at 4:15 PM

    Comment #11

    Ibiza

    Cheers bud.
    I see the Andy carroll stories are starting to circulate already. Since the story broke of Nufc having loads of cash to spend we have been linked with some right crap

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  • Toonces

    May 17, 2017 at 4:17 PM

    Comment #12

    Charlie – was curious about local potential sponsors. A few big companies in the North East I don’t know much about them other than the obvious (Nissan). Who knows down the road.

    …and what’s with Sunderland having the 2 biggest??!

    1. Nissan, Sunderland, £5.3B (2014 turnover)
    2. Arriva, Sunderland, £3.5B
    3. Go-Ahead, Newcastle, £3.2B
    4. Vertu, Gateshead, £2.1B
    5. Bellway, Newcastle, £1.5B
    6. Sage Group, Newcastle, £1.3B

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  • Ibizatoon

    May 17, 2017 at 4:21 PM

    Comment #13

    jazzy…No matter what league we’re in, what budget we have, no matter what, we will always be linked with every player known to man.

    Haven’t seen the Carroll one yet, but it wouldn’t be a transfer window without the possibility of big Andy coming home 🙂

    Toonces…I’d guess that property is less expensive in Sunderland than Newcastle? Might explain why they’re based there….it’s cheaper.

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  • firebug666

    May 17, 2017 at 4:28 PM

    Comment #14

    The only reason we have a Chinese sponsor is because Ashley wants to sell SD in the east. Newcastle may have the sponsorship, but I doubt any bits of paper passing between the two companies will not have passed their eyes without seeing Sports Defect somewhere.

    Push Newcastle in China, with Sports Defect on every billboard………..Job Done!

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  • Ibizatoon

    May 17, 2017 at 4:32 PM

    Comment #15

    firebug…I just wish I could understand where this cynicism comes from!

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  • hibbit

    May 17, 2017 at 4:33 PM

    Comment #16

    not sure the rest of the world thinks as badly of SD as folk on here
    the people i know especially with kids love it !!!

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  • Charlie in the Gallowgate

    May 17, 2017 at 4:34 PM

    Comment #17

    Toonces

    Sad that there is not much pickings in the North East to pick from.

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  • firebug666

    May 17, 2017 at 4:36 PM

    Comment #18

    Ibiza

    LOL! Cynicism??

    Just simply voice my opinion, He wants a global market for Sports Defect, and our beloved club is the perfect tool for him.

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  • NezzaNUFC

    May 17, 2017 at 4:38 PM

    Comment #19

    You could be on to something Firebug@14

    MA used this strategy to advertise SD and now the brand is massive because of NUFC.

    Fun88 would advertise our name and brand all over Asia and with our club history and status and the fact Rafa is here could open a potential buyer from Asia who has bags of cash to splash and make a name in the PL.

    Man city,Chelsea did it this way to attract mega chairmen so I don’t see why we can’t do the same,the blueprint is here and ready made but we are missing that tycoon chairmen 🙂

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  • NezzaNUFC

    May 17, 2017 at 4:40 PM

    Comment #20

    How much is Newcastle worth? between 200-300 million for full purchase?

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  • Jib

    May 17, 2017 at 4:49 PM

    Comment #21

    “NezzaNUFC // May 17, 2017 at 4:38 PM
    now the SD brand is massive because of NUFC.”

    God bless your naive regard for the Toon

    The club needs fans like you .

    😀

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  • hibbit

    May 17, 2017 at 4:57 PM

    Comment #22

    NezzaNUFC

    Revenue £2.904.3 billion (2016)
    Operating income £223.2 million (2016)
    Profit £279.0 million (2016)[2]

    SD profit is about what the club is worth !!

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  • ToonRich

    May 17, 2017 at 5:14 PM

    Comment #23

    Tom Ince could now end up at Newcastle in a cash plus Grant Hanley deal…Thoughts?

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  • ToonRich

    May 17, 2017 at 5:16 PM

    Comment #24

    Newcastle United are interested in signing Sporting Lisbon’s William Carvalho after he put in a transfer request according a report from Portuguese publication O Jogo – The article seems a bit off as the claim Carvalho is a winger!!

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  • Toonces

    May 17, 2017 at 5:18 PM

    Comment #25

    Charlie – too bad indeed but at least the bit of global recognition remaining from the entertainers days, that Ashley hasn’t completely erased just yet, helps. Rafa staying helps and success on the pitch grows the toon army. Onward and upwards or however that goes. Anyway, at least Wonga is gone, and looking forward to the window opening and all the crazy rumours!

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  • Jib

    May 17, 2017 at 5:19 PM

    Comment #26

    O Jogo (which means “The Game” in Portuguese ) is quite well regarded

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  • Oldgit1

    May 17, 2017 at 5:24 PM

    Comment #27

    @ ToonRich nah, don’t rate him, it’s interesting that every time we are linked to a player crystal palace is also. I have stopped reading about players we are supposedly linked to. I will wait and see. In Rafa I trust

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  • ToonMauritius

    May 17, 2017 at 5:25 PM

    Comment #28

    Hi lads
    Hope MA back Benitez in the transfer market. As CB we should go for Maguire & Shawcross, Midfield – Delph & Mooy, wingers – Fioresteri & Dolberg, Forward – Remy & Sturidge

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  • Jib

    May 17, 2017 at 5:32 PM

    Comment #29

    http://www.ojogo.pt/futebol/1a-liga/sporting/noticias/interior/newcastle-sonha-com-william-carvalho-mas-sujeita-se-a-ouvir-falar-da-bota-sem-pitons-6224905.html

    According to this
    NUFC have offered 30 million
    To which the Sporting chairman (also called Carvalho) has responded rather impolitely something about his boot studs.

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  • hibbit

    May 17, 2017 at 5:32 PM

    Comment #30

    if there’s a deal on offer for Hanley I would rather have Will Hughes don’t rate Ince

    £5m and Will Hughes and they can have Grant LoL

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  • jazzyp

    May 17, 2017 at 5:35 PM

    Comment #31

    Henry Onyekuru anyone

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  • jazzyp

    May 17, 2017 at 5:40 PM

    Comment #32

    Hibbit

    Personally mate I’m not that impressed with most targets we are apparently after.
    I know we are back in the big time and baby steps are needed . But I thought we would be looking at better players than the likes of Ince or Hughes.
    If the likes of Stoke can attract big players then I’m sure we look a bit higher up the transfer ladder

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  • lochinvar

    May 17, 2017 at 5:48 PM

    Comment #33

    The financial benefits of building a mega fan base in the Far East is well documented.
    Understanding how that is achieved is something else.
    Success on the pitch is of course is a must but in fact excitement and pop star type hype is the key to brand appeal and the target market is often teenage/young adult with a large female following.
    That means some of our existing players have to develop their own stage personae or Mike has to dig deep and buy one or two international stars who can light up the media coverage.
    We shall see

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  • Jib

    May 17, 2017 at 5:49 PM

    Comment #34

    We’ve also scouted Feirense’s Nigerian attacking midfielder Oghenekaro Etebo as well

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  • Oldgit1

    May 17, 2017 at 5:55 PM

    Comment #35

    Also a Belgium young player called Henry Onyekuru, 19 years old and a left winger/ striker. Impressive kid. Another Pl team is also in for him probably crystal palace.

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  • toontaff2

    May 17, 2017 at 6:01 PM

    Comment #36

    Loch, I think Big Isaac may have that covered 😛

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  • anthc

    May 17, 2017 at 6:11 PM

    Comment #37

    I don’t have an issue with the amount of money for the sponsor, it’s within the top ten of the pl. As someone rightly pointed out we are no Barcelona/ man utd so that comparison is a waste of time.
    We are being linked with some right duds imo. Tom ince not good enough, will hughes i dont think he’ll cut it in the pl, bloody phil bardsley maybe 5yr ago.
    We will be linked with every man and his dog but I think we need a bit better than some of the names being thrown about. Rafa will be very shrewd and savvy I’ve no doubt but at the same time I’m not expecting any superstars just yet. We have to give big incentives for players to come as most prefer to live nearest to the big smoke as possible although i hope playing for rafa may ease this a bit.
    What about sakho from the bindippers? Been at palace since January and was in the running for their player of the season. Bit of an attitude which was the downfall of his exile but when he’s played regularly he’s been very good. Maybe just needs a hug from fhe manager!

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  • Jib

    May 17, 2017 at 6:22 PM

    Comment #38
  • Average_Contents

    May 17, 2017 at 6:30 PM

    Comment #39

    Has it only just dawned on the rest of the world. Sky’s over-dramatised none transfer rumours they decide to make up have pushed betting markets for years.

    About time they were called out for it.

    http://c.newsnow.co.uk/A/886050230?-11058:809

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  • ShirebrookToon

    May 17, 2017 at 6:36 PM

    Comment #40

    Sky “believe in better”

    Really trustworthy slogan. That’s why majority of people have kodi!

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