Duncan Castles has been speaking on The Transfer Window podcast about how much PIF could pump into Newcastle United via sponsorship deals.
A lot has been speculated about how much Newcastle United will be spending and on who in January, but it’s not likely to be an outlandish amount of money as the club have not been able to strike up any sponsorship deals under PIF as of yet and with relegation potentially on the horizon the owners may be unwilling to throw loads of money at a long shot of staying in the league.
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News has broken in the last few days about how the Premier League and its clubs have voted to pass through a new rule which will see the league individually check every sponsorship deal that is brokered by any of the 20 clubs, although there were two teams which voted against this coming into force, which were Newcastle and Manchester City.
Even though this now could put a cap on how much money PIF put into the club via big-money sponsorship deals, however, they could just bring in a lot of different sponsors which then rack up to the same amount of money.
This is something that Castles spoke about on The Transfer Window podcast.
“So for example, if Saudi Arabia wanted to put, let’s say £200 million into Newcastle United revenues, in principle, they could split that across 10s of different commercial deals coming out of Saudi Arabia. In a similar fashion to Manchester United have, I think over 100 commercial partners of varying degrees now, with each of those deals being assessed for fair market value.
“Perhaps the kit sponsorship being allowed at £25-30 million, if they wanted to put a new sponsors name on St James’ Park, having got rid of Sports Direct, that could be perhaps £20 million in value for that and through the gamut of potential sponsors.
“So the total level of nation-state funding via commercial deals is not necessarily controlled by the new laws, but each individual sponsorship will be controlled but Newcastle United, they’re aware of that and you can see that Manchester City will also be aware of that, so it’s going to be a mess.”
TIF Thoughts on Newcastle’s potential new sponsorship deals…
To try and get around rules such as Finacial Fair Play would likely be via sponsorship deals and to strike up ones linked to Saudi Arabia given the Public Investment Fund of the country have an 80% stake in the club.
If Newcastle manage to avoid relegation this season then they can truly kick on from the summer and look to solidify themselves as much more than a team that fights relegation every season, however, if they go down into the Championship, trying to sign players and get lucrative sponsorship deals becomes just that little bit more difficult.
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