Kieran Maguire: Newcastle United to emulate Man United as £109m deal agreed
Newcastle United can emulate the success of Man United in generating big money from overseas pre-season tours.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the potential for lucrative trips to the Magpies’ owners’ homeland.
Newcastle were taken over by the Saudi Public Investment Fund in a £305million deal in October last year.
Sport Business reported that PIF-backed property developer Roshn has now agreed a title sponsorship deal with the Saudi Professional League worth £108.7m over its five-year lifespan.
Newcastle beat Saudi Professional League side Al-Ittihad 2-1 in a friendly during the winter break in January.
Maguire explained that tours of Saudi would lend legitimacy to the Saudi Professional League and will also be money-spinning affairs for Newcastle.
“When clubs like Newcastle go to Saudi Arabia on pre-season tours, that benefits the credibility of the product,” he told Football Insider’s Adam Williams.
“It also allows Newcastle to command significant fees from promoters. For being part of similar tours, Man United make in the region of £15m per year if you look at their accounts.
“This could be a signfiicant factor when it comes to Newcastle’s income range.
“That means that it will also ultimately help them when it comes to profit and sustainability rules because your ability to spend is derived from your ability to generate income.
“This is a way of addressing the gap between themselves and the ‘Big Six’.”
In other news, pundit suggests the real reason PIF have allowed record-breaking Alexander Isak deal at Newcastle United