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With Premier League Clubs – This Is A Big Differentiator And Newcastle Lag Behind

The Deloitte Money League is out today, and as we reported today, there’s a piece on how Newcastle were promoted in 2017 by basically continuing to operate as a Premier League club in the Championship.

It was a bold move by the Newcastle hierarchy and thankfully paid off with immediate promotion back to the Premier League.

Another interesting piece and something that Newcastle have been lagging behind in is commercial revenue.

Mike Ashley – hasn’t been able to increase commercial revenues much at all

The three areas of revenue for Premier League clubs are broadcast, matchday, and commercial.

Broadcast are the huge TV right payments we get every season, matchday revenues are the gate receipts, and commercial revenues are where Newcastle are engaged with other companies (partners) like the sponsors of the strips and other such deals.

If we finish in the top ten in the Premier League, then broadcast revenues will be good, and we seem to be a popular side and are on live TV frequently – probably due to Rafa being the manager.

And matchday revenues will be good with St. James’ Park now sold out for every PL game.

Here’s a piece from Deloitte on commercial revenue and the fact that the advantage currently is with the commercial partners of clubs:

“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 ten 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.”

Newcastle should do better as we move up Premier League table and become a more recognizable brand worldwide.

That will allow Newcastle to increase the revenue we get from shirt sponsors and have other partners wanting to be associated with the Newcastle United brand.

In football doing well is really about having the team do well – and everything else – including increased revenues – naturally follows on from that.

If only Mike Ashley would realize that.

Comments welcome.

18 comments so far

  • The next Mike Williamson

    Jun 7, 2018 at 10:45 AM

    Comment #1

    So John Hall says they were trying to sell the club for three years. Shepherd says they weren’t trying to sell it, and he only sold it because he was in hospital – a bizarre reason. Sounds like a 6 year olds excuse for not doing his homework.

  • RobLeenio

    Jun 7, 2018 at 10:50 AM

    Comment #2

    One quick observation on the Rafa vs NUFC negotiations. It’s Rafa’s representatives who are handling it, presumably they’re being paid by the hour, so surely it’s in their own best interests to drag them out somewhat.

    Or am I missing something?

  • The next Mike Williamson

    Jun 7, 2018 at 10:52 AM

    Comment #3

    i agree. if it only took a few hours to sort these things agents wouldn’t be made millions. they’ve got to make it appear like they’re doing something

  • Jib

    Jun 7, 2018 at 10:53 AM

    Comment #4

    Someone pointed out yesterday when
    know-it-alls were comparing our commercials
    to Leeds

    I’ll say it slowly so folk like Lesh will get it

    The Leeds figure was T u r n o v e r

    Our figure was P r o f i t (cos ours is farmed out)

    Geddit ?

  • Bobbybee

    Jun 7, 2018 at 10:54 AM

    Comment #5

    Right, I’m off out for the day with me old mates. Away to the Boro to pick up a couple more then all four are heading out. 🙂 Last stop Boro, any suggestions for a good day out lads? Bear in mind we’re all 55-60 and not 16! 🙂 We’re doing this on the wing so no plans have been made.
    Jail, don’t take this the wrong way please mate, but people are allowed to change their mind. So Munster wasn’t impressed by Rafa’s tactics at first, but Rafa’s won him round. That’s a good thing. Things change in life. We used to argue like cat and dog but that’s changed.
    You and Munster always used to get on. He didn’t like Rafa’s tactics at first and that’s fine, that’s his entitlement. But clearly now he appreciates everything he’s doing.
    Just think about it mate. People’s opinions change over time. His has.
    Anyway, I’m off. Enjoy your day, I intend to. HOWAY the lads.

  • cyprus

    Jun 7, 2018 at 10:54 AM

    Comment #6

    If we have a player worth 45 million, then 300 was way too low a bid.

    It’s kind of a shame if we do break up our, for once, solid defense, however. With two three excellent new players up front we’ll be a force to be reckoned…

  • The next Mike Williamson

    Jun 7, 2018 at 10:55 AM

    Comment #7

    which is exactly what i spend my day doing. 4 hours on the blog, 4 hours pretending to do something, then home. i should be an agent.

  • cyprus

    Jun 7, 2018 at 10:56 AM

    Comment #8

    I think Rafa would sell for that kind of money.

  • lochinvar

    Jun 7, 2018 at 10:59 AM

    Comment #9

    What joy.
    Another botched set of thinking.
    So when is winter ?
    Does it mean March like this year when snow caused chaos,travel restrictions and ground closures due to the Health and Safety brigade.
    Or do we lose the Boxing Day and New Years day fixtures which provide some sanity from tacky TV, grossing out on food and drink. Bah humbug !

    After a decade of negotiations between the Premier League and the FA, Sky Sports News understands England’s governing body is expected to confirm in the next fortnight details of a winter break in Premier League fixtures, starting in the 2019-2020 season.

    The news comes after FA chief executive Martin Glenn confirmed to FA councillors for the first time that a two-week break was to be implemented.

    The break for Premier League teams will be staggered over two weekends, with 10 teams playing one weekend and the other 10 the next weekend, allowing every club a two-week break from competition.

  • The next Mike Williamson

    Jun 7, 2018 at 11:01 AM

    Comment #10

    Would make sense to put in January same time as the African Nations.

  • DubaiMicky

    Jun 7, 2018 at 11:08 AM

    Comment #11

    With House of Fraser shutting half it’s stores in the next year, what will that mean for Ashley who has an 11% ownership of it.

    Maybe he’ll want money to buy out the other 89%?

  • lochinvar

    Jun 7, 2018 at 11:09 AM

    Comment #12

    It’s kind of a shame if we do break up our, for once, solid defense, however. With two three excellent new players up front we’ll be a force to be reckoned…

    Do you think that the two or three players up front will score more goals than our then weakened defence lets in ?
    Just how many 4-3 wins will we get ?

    Rafa is building,clearly building a team build on solid defence which in the second half of the season came good and saved us from relegation significantly because of Dubrovka, Dummet/Yedlin and Lejeune/ Lascalles. Breaking that defensive cohort up would cost us goals, cost us points and push us back down the table into the relegation zone.
    We gained 10th place on goal difference which was I recall maybe the eighth best in the League.
    Points means prizes – well at least TV money which Ashley would like to keep. I daresay if some of it reaches Rafa then we might get those 2-3 strikers you crave.

  • Jib

    Jun 7, 2018 at 11:11 AM

    Comment #13

    Bobby Ripon Races

  • dig-n-dig22

    Jun 7, 2018 at 11:12 AM

    Comment #14

    Does anyone have a clue what Ashley possesses for a brain? My guess is a couple of dice rattling around in his fcuking head.

  • Pottsclock

    Jun 7, 2018 at 11:13 AM

    Comment #15

    House of Sports Direct or House of Ashley
    The thought makes me cringe

  • Jib

    Jun 7, 2018 at 11:16 AM

    Comment #16

    Does anyone have a clue what Ashley possesses for a brain?
    My guess is a couple of dice rattling around in his fcuking head.

    that means it’s 10 times the size of yours and Ellis Short’s combined

  • lochinvar

    Jun 7, 2018 at 11:18 AM

    Comment #17

    Today’s Premier League AGM in Harrogate could have significant ramifications for how overseas TV money is distributed in public. Lee Charnley is expected to be there representing NUFC today

    While it may not be a game changer for the top 6 who will no doubt scoop more into their troughs other clubs and particularly Newcastle who are big box office for the TV companies ( 52,000 fans, Rafa, pictures of the Tyne Bridge etc compared to other clubs often with less that 30,000 fans for a match and no Angel of the North pictures ) will be negotiating for a better deal which might help the transfer kitty fund.

  • dig-n-dig22

    Jun 7, 2018 at 11:32 AM

    Comment #18

    Jib 16
    I told you a while back what you possessed for a brain ” The wheel is still turning but the hamster is dead “


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