Kieran Maguire: Newcastle United may be forced into 'compensation' payout after PIF terminate deal
Newcastle United may be forced to pay compensation to Fun88 following the termination of their front-of-shirt sponsorship deal.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about why the Saudi-backed Tynesiders have chosen to abort the partnership.
The Magpies first linked up with the online bookmaker ahead of the 2017-18 campaign, and a long-term extension was signed in July 2020.
But per iNews on Wednesday (8 May), the deal has been cut short and the club are now in the hunt for a new sponsor.
Gambling is illegal in Saudi Arabia, the homeland of Newcastle’s ultra-rich owners.
And Maguire suggests that the PIF regime may therefore have had a direct say in the termination of the Fun88 deal.
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“This could be a bit of a nudge from the owners,” he told Football Insider’s Adam Williams.
“Explicit reference to gambling when your owners are based in Saudi Arabia is an inconsistency with the views of the faith there.
“We saw a few years ago that Chelsea ended up paying Adidas a lot of compensation when they switched to Nike. Newcastle could pay off Fun88 for any remaining years of the contract.
“On the back of that, they could sign a new deal. The battle they will have is trying to get it past the fair value panel.
“They will be interested to see exactly how much Everton have got from their new cryptocurrency sponsor because that effectively sets a benchmark for the other 14 clubs.“