Finance guru: Newcastle may now land new shirt sponsor deal as Government steps in
Newcastle United may look for a fresh front-of-shirt sponsor as new Government legislation could limit the value of betting partnerships.
So says finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the knock-on effect of the new advertising regulations.
As relayed by The Guardian last Tuesday (5 April), the Government has banned football clubs from using players in gambling promotions.
Newcastle partnered with Chinese betting firm Fun88 in 2017 and agreed an unspecified long-term extension ahead of the 2020-21 campaign.
Miguel Almiron, Callum Wilson and Jamaal Lascelles currently feature prominently on Fun88’s website homepage.
That will be illegal when the new laws come into force, and Fun88 will also be unable to use the Magpies’ stadium or kit in promotional material.
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Plumley suggests that Newcastle may look for a new primary sponsor if the new laws decrease the future value of the Fun88 deal.
“It certainly could reduce the value of these deals,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“Sponsorship partnerships will always hold more value if you can access the players as well, so we could see the deals fall in value linked to that.
“But if these sorts of areas are further legislated, clubs will probably start looking for the next thing. In fact, they probably already are.
“Clubs will react to news like this. I think Newcastle might be looking in a different market moving forward.”
Newcastle were in the red by £22.5million when they released their last set of annual accounts in August 2021.
The Tynesiders have not yet revealed their figures for the 2020-21 season.