Finance guru cites ‘£400m’ Middle East agreement as Newcastle United eye ‘landmark’ deal
Newcastle United may look to follow in the footsteps of Man City and sign a high-value long-term shirt sponsorship deal.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider after the Magpies cut short their deal with online bookmaker Fun88.
As relayed by iNews earlier this month (8 June), the Tynesiders have now begun the hunt for a new shirt sponsor.
They are yet to announce a new arrangement.
Newcastle became the world’s richest team after the Saudi Public Investment Fund’s takeover in October last year.
But they know they must grow commercial revenue in line with Financial Fair Play considerations before they are able to flex their financial muscles in the transfer market.
And Plumley claims that they could take inspiration from City’s £400million deal with UAE airline Etihad Airways as they look to secure a “landmark” sponsorship deal.
“The classic case is the Man City example,” he told Football Insider’s Adam Williams.
“Etihad paid £400m for a 10-year deal. There are benefits to signing a long-term partnership if you’re assuming value is going to grow. A new sponsor would be getting in at a good time to sponsor Newcastle.
“Wherever the money is coming from, the deal is going to be scrutinised just like City’s was. But the argument holds water. You would rather sign landmark a long-term deal if you’re a club because it gives you that security.
“If you’re a sponsor and you spot some potential growth, you can gamble on it. You could be getting a deal in 10 years’ time that would look like very good value.”
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