Newcastle United are set to feel the benefit of two big new commercial deals.
The Magpies have made raising commercial income one of their number-one priorities since the Saudi Public Investment Fund‘s takeover almost three years ago.
Every pound they earn from sponsorship and merchandise sales is another pound they can spend on recruitment under the Premier League’s Profit and Sustainability Rules.
But their income in this department is not entirely autonomous
The Premier League themselves are the single biggest income stream for Newcastle, with TV money and cash from league-wide commercial deals being redistributed to clubs.
And Newcastle will therefore be glad to see the Premier League announce two blockbuster new deals with big-name brands.
Premier League strike two new big-money sponsor deals
The Premier League announced yesterday that it has struck a global sponsorship deal with Guinness, who will become their official beer partner.
The previous day, it was widely reported that the Premier League had renewed its long-running partnership with British bank Barclays.
The two deals are worth £52m and £75m respectively, and Newcastle will see a direct benefit from the deals.
Commercial revenue in the Premier League is split partly on an even basis and partly in accordance with performance, so it’s impossible to say exactly how much Newcastle will bank.
But a good year on the pitch could see them net an eight-figure sum from the deals, as well as from the Premier League’s other existing partnerships.
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Will Newcastle breach PSR and get points deduction?
Newcastle are one of a handful of clubs who are teetering on the edge of a financial fair play breach (now called Profit and Sustainability, or PSR).
Even with this season’s Champions League income factored in, they have incurred heavy losses in recent years and are on course to exceed the Premier League’s allowable loss limit of £105m over three seasons.
In order to comply with PSR, they need to sanction player sales before 30th June, which is the date on which the PSR assessment window closes.
If they fail to do so, they are at risk of a fine and a points deduction, just as Everton and Nottingham Forest were in 2023-24.