Kieran Maguire: Newcastle United can reverse £30m regret with ‘brilliant’ deal
Newcastle United could yet agree a “brilliant” new sponsorship deal with Castore despite the Premier League club’s regret at the current value of their agreement.
That is the opinion of finance guru Kieran Maguire, who spoke exclusively to Football Insider about the finances involved with Newcastle’s kit manufacturer deal.
Newcastle are currently partnered with kit supplier Castore after signing a multi-year contract with the Manchester-based manufacturer ahead of the 2021/22 season.
That current contract was worth £30million and runs until the end of the 2025/25 season -a £5million-per-year deal.
However, Football Insider sources revealed earlier this month (2 February) that there are private regrets at St James’ Park that the club is locked into a long-term contract with the suppliers.
The total £30million valuation of Newcastle’s Castore deal is less than half of what five out of the so-called ‘Big Six’ earn in a single year of their kit deals.
However, Maguire believes there is still a chance that Newcastle could continue their partnership with Castore, provided the supplier increases the valuation of their current deal.
“Newcastle’s ability to expand their merchandise sales income is significant after the takeover,” He told Football Insider’s Adam Williams.
“However, even if the Castore deal is only worth a flat £5million a year the club will have a commission on top.
“What they are likely to do is estimate the number of expected sales under the new regime and compare that fee to what they could receive from a new kit manufacturer.
“They’ll then calculate and decide whether or not it’s worth continuing with Castore.
“From Castore’s point of view, Newcastle are one of their biggest clients and therefore there’s a benefit to them in agreeing to pay more for merchandise rights.
“If they can tie themselves down for a few more years it could be a brilliant deal for all parties involved.“
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