Newcastle ‘agree £25million a year shirt sponsorship deal with Middle East firm’ after ending deal with Fun88 – worth just £8million a season – two years early
- The North East club is having its best season in decades under Eddie Howe
- The deal with Fun88 was agreed before the acquisition by Saudi Arabia’s PiF
- Agreement with Middle East company would be worth £25 million a year
Newcastle have reportedly agreed a deal worth £25 million a year for a Middle Eastern company to become their new title sponsor.
The North East club is currently enjoying its best season in decades, managed by Eddie Howe and backed by the hugely wealthy Saudi Arabia Public Investment Fund.
According to The timesNewcastle have signed a deal with an unnamed Middle Eastern company that more than triples their shirt sponsorship revenues a year, from £8 million to £25 million.
The company in question would not be from Saudi Arabia, but from another country in the region. The report says the new commercial deal will be unveiled next month by the St James’ Park club.
Currently sponsored by gambling company Fun88, an agreement struck ahead of its Saudi-backed takeover in October 2021, Newcastle agreed a deal to end that partnership two years early last year.
Newcastle will announce a new main sponsor next month, it has been reported
Eddie Howe has guided Newcastle to the brink of the Champions League, hugely boosting the club’s commercial attractiveness
Newcastle insists the new deal falls within Premier League FMV rules and is not unnecessarily linked to the club’s owners, the Saudi PiF.
The reported lucrative deal reflects the significant uptick in fortunes the club has enjoyed over the past 18 months.
Newcastle faced the very real prospect of a tight relegation battle as Howe took over from Steve Bruce almost immediately after taking over, although the former Bournemouth boss worked their way through last season and has seen them edge to the edge of the Champions League led.
Newcastle are currently third in the Premier League, eight points ahead of Tottenham in fifth after playing a game less and boasting a superior goal difference following a number of convincing victories, including a 6-1 hammer over the north London club last weekend.
It is alleged that Newcastle themselves insist that the deal falls within the boundaries of the Premier League’s FMV (fair market value) rules.
The FMV rules, introduced in December 2021 in direct response to the club’s Saudi-backed takeover, require all clubs to demonstrate that their commercial deals are appropriate and not overvalued.
Fears grew that Newcastle would unfairly benefit from post-takeover agreements with Saudi entities, leading to the agreement of all clubs, except Newcastle and Manchester City, to introduce the rules.
The rules are intended to bring more transparency to the commercial agreements of top clubs.
According to reports, Newcastle will receive £34.3 million this season as opposed to £19 million last season as he made 30 televised appearances during the campaign. They will receive £17 million more this season if they stay in third place compared to the 2021-2022 season.
Newcastle have spent extensively, if not lavishly, on the three transfer windows since taking over. Fees so far have reached £250 million, with the club expected to continue revamping their squad this summer.
Newcastle have spent a lot of money since taking over in 2021 – and Alexander Isak’s record really started to make an impression
Howe took the Newcastle job in November 2021 and has been guiding them upwards ever since
Howe has insisted the club don’t have a bottomless pit of money to spend, claiming they will continue to operate in a ‘smart’ way into the transfer window.
“A review of the squad is very difficult to do. It’s almost impossible in this day and age with the prices of the players,” he said.
“We don’t have an unlimited budget and we will have to be very smart about what we do. FFP will still be there and force us to work a certain way.
“We have to make smart decisions. We need to bring in the right players, not just one, and certainly the majority of the squad here who have performed well deserve to be part of our future as well.’