Dr Dan: Newcastle in line to seal big-money commercial deal after Monday development
Newcastle United are well placed to seal a big-money new stadium naming rights deal, according to Doctor Dan Plumley.
The finance expert, speaking exclusively to Football Insider, revealed the club’s previous agreement with Sports Direct was “undervalued” by ex-owner Mike Ashley.
As reported by the Daily Mail on Monday, (6 December), the Sports Direct signage at St. James’ Park is finally coming down.
The news will be welcomed by the Toon faithful given the branding’s links to unpopular former owner Mike Ashley.
Magpies director Amanda Staveley revealed last month (11 November) that the club are looking to seal new sponsorship deals “as fast as possible”.
When asked by Football Insider for his expertise on Newcastle’s situation, Plumley said:
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“If you look at the Man City case and the Etihad sponsorship, it ended up going through FFP. People thought that was inflated but the counter-argument is, what is the market value for the naming rights of a stadium. It is what people are prepared to pay.
“The clubs are obviously trying to block such deals at the moment.
“Newcastle can certainly generate a lot more than the naming deal they had with Sports Direct. To be honest, that deal was undervalued. Mike Ashley left the club in a good spot financially but that stadium rights naming deal was undervalued in the context of what they could have got.
“They will generate more from a new naming rights deal. How much more will be determined by the Premier League’s sponsorship decision.
“The commercial revenue for Newcastle in 2020 was £26million. There is growth potential there.”
In October, Premier League clubs voted to put a temporary ban on commercial arrangements with pre-existing business relationships.
The ban is set to be reviewed at a Premier League shareholders’ meeting next Tuesday.