Kieran Maguire: Newcastle need the finest legal representation after ‘critical’ development
Newcastle United will need the finest legal representation if they are to have success in the commercial department under PIF.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the issues posed by the top flight’s new sponsorship rules.
All new commercial deals signed by Premier League clubs are now scrutinised by an independent arbitrator for fair market value.
Newcastle posted a job advert on Linkedin on Tuesday (15 February) for a Legal Counsel to help navigate “commercial, legal and compliance issues”.
The Magpies are cash-rich but face problems when it comes to flexing their financial muscle because of financial fair play restrictions.
Ensuring maximum value from commercial deals is key to solving this problem, claims Maguire, but they must do so within legal parameters.
“This is an area where they need to place a lot of emphasis,” he told Football Insider‘s Adam Williams.
“They need someone who can justify the value of the arrangements with commercial partners.
“Every extra £1 you bring in through sponsor deals is another £1 you can into the recruitment budget and retention budget.
“This is going to be critical for Newcastle going forward. This is the direction of travel in the Premier League.
“Football is a talent game. In order to get a one per cent increase in output from a player, you have to give him a 10 per cent pay rise.”
Football business expert Doctor Dan Plumley told this site on Tuesday (15 February) that PIF may consider a naming rights deal for St. James’ Park.
Analysis published by The Athletic last Wednesday (9 February) found that they could demand £4million per year from such an arrangement.
In other news, pundit suggests Newcastle United fans have critical role to play after “massive, massive” news.