Newcastle Hoping To Cash In On Rafa Benitez And 10th Placed Finish


The Chronicle are reporting today that Newcastle will announce a new sleeve sponsor for the upcoming season next month.

One of the weak areas of revenue for Newcastle has always been the commercial side under Mike Ashley, and we lag well behind the top six clubs and even others in the Premier League.

But finishing in 10th place last year and being a favorite team on live TV with Rafa Benitez on the sidelines should help the club get much better commercial deals in general.

And especially from the shirt sleeve sponsors.

It would have helped the negotiations with shirt sponsors if we already had Rafa signed up to a multi-year deal to stay on Tyneside.

It’s another area where Benitez will bring increased revenues to Newcastle as well as the high financial returns of finishing progressively higher in the Premier League – hopefully.

Last season was a one-off with tire company Madras Rubber Factor Limited (MRF), and quite a few PL clubs had them as shirt-sleeve sponsors.

Rafa Benitez – Newcastle’s most significant revenue driver

Newcastle are now hoping to get a multi-year deal tied up with much higher revenues.

Arsenal announced a £10M per year deal with Visit Rwanda last month, but we will not get anywhere near that figure – at least not yet.

Apparently, five companies are interested in being the short-sleeve sponsors of Newcastle, so that’s good – maybe that will push the price up because of the competition.

Commercial revenue is an area where top football clubs can differentiate themselves from other clubs,  with the most successful clubs getting some massive commercial income.

That’s not Newcastle – yet – but if we can tie down Rafa to a long-term deal and Mike Ashley takes Rafa’s handcuffs off and starts to support him, then commercial revenue will increase quickly as sponsors are anxious to become associated with a successful and popular Newcastle United Football club.

Deloitte Sports Business Group stressed in their annual report a few weeks back that commercial revenue was vitally important to top clubs:

Here’s a bit from their report as published in the Chronicle today:

“As a key source of revenue under a club’s control, commercial revenue is the area where clubs have the greatest opportunity to differentiate themselves from their competitors.”

“The development and exploitation of commercial opportunities over the next 10 years is therefore the key growth opportunity for clubs.”

“Whilst for broadcasting rights, clubs act collectively, they are in a fiercely competitive market for commercial deals.”

“As a result, this market has become increasingly crowded, with clubs at all levels offering commercial partners multiple entry opportunities at a wide variety of price points.

“The result is a lack of clarity and an advantageous position for the commercial partner, who can play any potential suitors off against each other in order to drive the price down.”

This is another opportunity for Mike Ashley, but the owner seems to specialize in not spending money – and that’s hardly a good trait if you want to be a successful football club.

And it’s the successful clubs who make big money in commercial revenues – not the ones who are content on merely staying in the Premier League and spending as little money as possible to achieve that.

Comments welcome.


20 comments so far

  • Optimistic Panda

    Jun 27, 2018 at 9:32 AM

    Comment #1

    Posada

    From previous, you should change Ashley saved Nufc from bankruptcy to Ashley brain washed the gullible.

    4
  • AncientC

    Jun 27, 2018 at 9:34 AM

    Comment #2

    RobLeenio, I don’t figure you for a racist, but calling Asian Newcastle fans “freaks” was ill judged. You are, however, a sycophant. That I have no doubt of.

    You shouldn’t call Newcastle fans “freaks”, whatever their creed or colour; maybe then you wouldn’t have to claim victimhood when somebody raises the issue. Just a thought.

    I shall allow you to get back to being the moral compass of the blog. Good luck in future with that.

    8
  • Mag52

    Jun 27, 2018 at 9:36 AM

    Comment #3

    Ashley Out.

    3
  • magscar

    Jun 27, 2018 at 9:40 AM

    Comment #4

    Ancient C

    Cliche or not the club was not being run sensibly and the Championship and League one are littered with examples of clubs over stretching themselves. Leeds are just the most spectacular example!e of flying to close to the Champions League Sun. Chelsea were apparently not far away from imploding before Abramovitch stepped in.

    Football in general has rarely been run on sound business principles and the PL and obscene SKY monies have only exacerbated the tendency of a failing gambler to continue throwing money away in the hope of salvation usually to no avail but more misery.

    1
  • Mag52

    Jun 27, 2018 at 9:41 AM

    Comment #5

    Hopefully Murphy will kick on this season. His one goal last season showed class.
    I’ve changed my mind on Mitro, mainly because funds, as usual, are again in short supply in this transfer window, or so it appears.
    The money spent on a CF, in all probability no better than the Serb, could be better spent on strengthening the team in other areas. Rafa take note.

    4
  • AncientC

    Jun 27, 2018 at 9:44 AM

    Comment #6

    magscar, the only thing responsible about Ashley is that he can afford to absorb the debts he incurs upon the club.

    3
  • Mister Tuff

    Jun 27, 2018 at 9:49 AM

    Comment #7

    Magscar/Posada/Rob – yes reminded that there was a clampdown on the refs being mobbed. Cannot remember what initiated it or who imposed it. Was it just the PL or the refs association or whatever they call it now, was it following a ruling from UEFA/ FIFA just cannot remember. Certainly FIFA now need to get it sorted.
    Feigning injuries now seems to have increased, probably VAR related.

    Football authorities are reluctant to dimish referees total control of the game – need to follow rugby and have other refs monitoring VAR to make the calls.

    0
  • magscar

    Jun 27, 2018 at 9:51 AM

    Comment #8

    Rob

    I think the clampdown has had an effect if you recall the scenes like all Man U players intimidating the Ref at OT to avoid penaty being given.

    VAR should probably have been road tested before a World Cup trial but could it have been tried out in all countries and who would fund?

    Not sure how in PL it is going to work when several games on at once never mind in poorer leagues?

    Football seems a good choice for VAR after similar in Rugby Cricket and Tennis but the speed of game, fewer natural halts and numbers of simultaneous matches is making it difficult to prosper.

    The technology genie is out the bottle and unlike say temporary changes to offside rule, goal keeper steps and retaining ball, it will be a feature for years to come but has to be made to work.

    0
  • RobLeenio

    Jun 27, 2018 at 9:54 AM

    Comment #9

    PompousC, let’s face it you’re the only one who has mentioned they were Asian, by doing so you’re implying their race had something to do with it, when I was referring to their gormless appearance, festooned with Sports Direct stuff and barely one of them cracking a smile while in the company of the newest club signing.

    I actually wondered at the time if they were real fans (still do) but possibly competition winners roped in for the photo opp and was really wondering out loud what Kenedy thought of his ‘welcome’

    It was an ill-judged and ill-advised comment and I acknowledged Murvar’s totally fair criticism at the time and moved on.

    You should too, I’m not sure what you’re trying to prove, other than you’re like a dog with a bone

    3
  • DaveD1000

    Jun 27, 2018 at 10:02 AM

    Comment #10

    I seem to recall Man U players continually mobbing the ref to be the instigator of the clampdown. Seems simple to police. Captain only to approach ref, yellow for all others who try it on. Harsh but I would imagine a couple of games with mob yellows would get the message across.

    0
  • RobLeenio

    Jun 27, 2018 at 10:04 AM

    Comment #11

    Mag52, I’m looking forward to a big season from Murphy. Rafa spent time on him last season, he looked far more sure and confident in his sub appearances towards the end of the season than he did earlier on.

    I said a month or so ago, he could be our Raheem Sterling and I still think that’s true.

    1
  • Mister Tuff

    Jun 27, 2018 at 10:05 AM

    Comment #12

    Magscar it was tested last season in Serie A – interesting if anything was changed after the trial.
    The principal of VAR seems ok just the interpretation and application of it seems poor.

    0
  • magscar

    Jun 27, 2018 at 10:07 AM

    Comment #13

    AncientC

    I usually hesitate to join in the “what has Ashley ever done for us” chat as it invariably leads to those with entrenched takes on matter denigrating other contibuters as being apologists.

    As I have said before we may play in black and white but all things NUFC related are no so markedly delineated – there are clear swathes of grey.

    I don’t doubt that any positive effect of Ashley’s tenure is simply because of a business angle which has coincided with a beneficial impact for fans and was entirey coincidental.

    I am not gullible in the slightest and so have no difficulty in recognising that no matter the intention some good can stem from the actions and it is being blind to the obvious not to see that

    2
  • magscar

    Jun 27, 2018 at 10:12 AM

    Comment #14

    Mister Tuff

    I knew it had been trialed somewhere just couldn’t recall where and to what extent. Big step up to a World Cup though.

    Like the more successful goal line sister technology it is based on sound principles and a clear need and has to be made to work.

    If for no other reason than I am sure there is a lot of money out there to be made by someone?

    0
  • posada

    Jun 27, 2018 at 10:13 AM

    Comment #15

    I think folks are right in that the authorities want to keep the idea that the ref is in complete control of the game.
    However, if you have someone as a video ref of equal standing and experience how would it be so wrong to defer to him/her when they have the benefit of slow mo replays etc.
    We often hear that VAR has to check 20 angles. Really, I don’t think so the couple of tv angles we get to look at within seconds should be enough.
    As I say most games come down to 2 or 3 big decisions.
    Just give the teams the capacity to influence that with a referal system. It would take all the hassle out of it. If you feel so strongly about something don’t mob the ref use one of your referals.

    0
  • RobLeenio

    Jun 27, 2018 at 10:16 AM

    Comment #16

    Ashley and his companions were very quick to circulate the myth that he was the great saviour, riding in on his charger to pull the club out of the jaws of bankruptcy.

    The reality is that if he didn’t know the debt existed (he did), he should sack his staff as that amounts to gross negligence. The debt itself was an operating debt, which is a burden carried by most large companies. His writing off the entire debt and refusing to allow the club to have any creditors at all hasn’t benefited the club in the slightest and has actually hurt our cash flow.

    I don’t know if the debt was sustainable or not, but even if not the entire amount did not need to be paid off at once. Why would it?

    1
  • mactoon

    Jun 27, 2018 at 10:17 AM

    Comment #17

    An example of Newcastle’s ‘weak areas of commercial revenue’ from the 2014/15 Newcastle United accounts:

    ‘During the current and prior year, advertising and promotional services were provided to Sports Direct International.

    No consideration has been paid by Sports Direct International for these services to date but Sports Direct International and the Company are in the process of agreeing an arms length rate for these services and the Company anticipates receiving payment for these services in the future.’

    Still waiting..

    3
  • posada

    Jun 27, 2018 at 10:21 AM

    Comment #18

    You often get a comment on here from the thirty bob entrepreneurs.
    Namely, the club has not increased it’s sponsorship and revenue.
    Well a home truth. Even if we are more successful we are in the North and all the new money goes to the South. We can’t match the deals some clubs get.

    Big deal is made of the Sports Direct signs in the ground. I don’t think adverts in the ground are a big earner.
    Did he not say that if someone offered serious money for the space taken by them he would swap the space and give it to an actual paying sponsor. Was something like that.

    0
  • posada

    Jun 27, 2018 at 10:25 AM

    Comment #19

    Some folks seem to have an agenda thats all about that sort of thing.
    Land at the Strawberry car park being another.
    It does not matter.

    1
  • Rotonda heights

    Jun 27, 2018 at 10:34 AM

    Comment #20

    And yet here we still find Ashley apologists, despite everything!!

    The guy has openly admitted he has zero interest in us and wants to sell, albeit not at the realistic market price. Doesn’t that bother you? A man who has proved time after time to be a pathological liar. Ash said his money was all ”wallpaper” and tied up, yet didn’t he miraculously put his hands on 200M to buy a housing complex in the smoke quite recently with seemingly little trouble as well as buying multi million pound shares in several other concerns

    I don’t doubt that under Shepherd we may very well have done a Leeds, yet 11 years later we owe more debt than ever and all to the fat man. Don’t know many people who constantly have to have people like Bishop spin everything. Our commercial revenues are totally negligible and any scope for redevelopment or extending the ground closed off. Is it any wonder that Rafa won’t sign anything.

    Wise, JFK twice, Llambias, Wonga, Pardew, 2 relegations, KK tribunal etc, etc

    Bottom line is Rafa is the only feel good factor at the cub now, while Ash’s greed determines our continued misery

    After 11 years the Ash apologists are still clinging to what exactly?

    3

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