Revealed: Newcastle United regret at £30m deal – sources
There are private regrets among many behind the scenes at Newcastle United that club is locked into a long-term contract with kit supplier Castore, Football Insider has learned.
The Magpies signed a deal worth a reported £5million a year with the Manchester-headquartered manufacturer ahead of the 2021-22 campaign.
Reports at the time, which have since been independently verified by Football Insider, revealed that the contract runs until the end of 2025-26.
The six-year deal means Newcastle will trouser just £30m all-told from the partnership, less than half of what five out of the so-called ‘Big Six’ earn in a single year of their kit deals.
The alliance was formed almost a year before the Saudi Public Investment Fund’s takeover of the Tyensiders, a historic development that has supercharged the club’s ambitions.
But while the owners boast near-limitless cash reserves, financial fair play dictates that Newcastle must first boost their income before they are able to exercise the full extent of their financial might in the transfer market.
It is for that reason, sources have told Football Insider, that the commercial department at St James’ Park is ruing the fact that the deal with Castore does not include a break or renegotiation clause in the event of regime change.
It has been reported elsewhere that the Magpies have held talks with Adidas, who provided their kit between 1995 and 2010 and hold iconic status in the eyes of the Toon Army.
This site has been unable to verify that information, but Newcastle would first have to buy back their rights from Castore if they were to strike a deal with the German sportswear titans.
That would likely come at a substantial cost given the number of years remaining on the contract.
A £5m-a-year deal in no way reflects the aspirations of the owners, however, who after a monumentally successful first year in control believe they can rapidly establish themselves as a force in both the Premier League and Europe.
For that reason, early termination of the deal remains on the table, although Newcastle CEO Darren Eales has previously stressed that his focus remains with Castore.
Newcastle are now in a unique position in that their sleeve deal with PIF-linked Noon.com is worth more – at £7.5m-a-year – than their kit deal.
Their front-of-shirt deal with Fun88 meanwhile will be terminated at the end of 2022-23, and sources told this site in December that a much more lucrative arrangement with airline SAUDIA is all but done.
In other news, ex-Premier League referee claims Newcastle United fans are being cheated as new plans lambasted.