Newcastle face Chelsea issue after sponsorship deal 'terminated'

Newcastle United could face issues agreeing a lucrative new front-of-shirt sponsorship deal following Chelsea’s recent struggles, sources have told Football Insider. 

The Tyneside club’s shirts have been sponsored by Sela for the past three seasons at St James’ Park. 

However, The Daily Mail reported on 15 May Newcastle’s deal with the Saudi Arabian events company will not be renewed once it expires this summer. 

It is understood the Sela deal is worth £25million a year to the north-east giants, making up a significant portion of their commercial revenue. 

Sources have told Football Insider Newcastle could struggle to agree a new deal at that level following Chelsea’s issues landing a permanent shirt sponsorship. 

Why Newcastle's on-field struggles could have commercial impact

Chelsea have been without a permanent shirt sponsor since their deal with telecommunications company Three ended in the summer of 2023. 

While the Blues have signed short-term deals, they have so far failed to agree a partnership at their £60m-a-year valuation. 

Chelsea’s commercial struggles raise question marks around Newcastle’s ability to find a new shirt sponsor ahead of next season. 

Eddie Howe’s side are hoping to secure an uplift on their deal with Sela, but that is expected to be difficult if they are unable to find a new partner from the Middle East. 

Meanwhile, Newcastle’s performances on the pitch make the club a less attractive proposition for any interested parties. 

The Magpies currently sit 11th in the Premier League table, ensuring European football will not be played at St James’ Park next season. 

Why Newcastle are set for bumper financial year

Newcastle chiefs are fully aware they need to continue increasing the club’s revenues if they want to challenge the Premier League’s elite financially. 

That will be an issue after Howe’s side have failed to qualify for the Champions League, having featured in the competition this season. 

Newcastle banked £55m in prize money from the Champions League after reaching the last 16 before being knocked out by Barcelona. 

That will provide a boost to the Magpies’ revenue, which stood at £335m last season after finishing fifth in the Premier League table. 

However, there are now question marks around the financial situation at St James' Park heading into next season without a front-of-shirt sponsor and European football.

Newcastle have one game remaining to secure a top-half finish, with a trip to Craven Cottage coming up on Sunday (24 May).