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Newcastle United have confirmed a sponsorship deal with events company Sela, which is owned by Saudi Arabia’s Public Investment Fund (PIF), the group that owns the Magpies.
According to i news, the multi-year deal is worth around £25m-per-year, with the partnership expected to test Premier League fair market values.
The English club have already come under scrutiny for their ownership, with PIF taking a majority 80% stake in the Magpies in a £350m deal in October 2021.
Newcastle sign mega deal
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Newcastle haven’t exactly gone over the top since their takeover, with plenty of clubs worldwide outspending the Magpies in recent transfer windows.
Despite this lack of mega spending, the club secured a Champions League spot for next season, finishing fourth in this season’s Premier League table.
Of course they are trying their best to avoid any FFP breaches, with the club set to provide evidence to the Premier League to support the value placed on the sponsorship deal it has now signed with Sela.
The events company is targeting global expansion, having already brought the likes of the Spanish Super Cup and Italian Super Cup to Riyad.
An independent assessor is expected to give advice concerning the deal, with the Premier League set to compare the valuation to other deals in the competition and across Europe.
How does Magpies deal compare with others?
This latest sponsorship deal regarding Newcastle represents a massive rise from the £7m-per-year agreement they had with previous sponsors FUN88.
It is, however, still way below the deals that other Premier League giants have in place, with Manchester City sitting top of the pile with their £67.5m-per-year Etihad deal.
Liverpool have a £50m-per-year agreement in place with Standard Chartered, with Manchester United and Chelsea in £47.5m-per-year and £40m-per-year deals with Teamviewer and Three respectively, although those contracts have expired and new sponsors are currently being sought.
North London rivals Arsenal and Tottenham are also high up the list, with both involved in mega £40m-per-year sponsorship deals with Emirates and AIA respectively.
What does Newcastle deal involve?
It’s clear that this sponsorship deal further strengthens the ties between Saudi Arabia and Newcastle, with the pair enjoying a strong relationship in these early stages of their cooperation.
As mentioned, the Magpies haven’t gone crazy in the market, although plenty of money was forked out on the likes of star midfielder Bruno Guimaraes and striker Alexander Isak. Anthony Gordon and Sven Botman have also been recruited to St James’ Park.
And the new money from this deal will no doubt be put towards several new additions this summer, with manager Eddie Howe certain to want fresh faces to help the club compete on all fronts.
Countless players have been linked, with the Magpies definitely needing to strengthen in various areas if they are to enjoy strong Premier League and Champions League runs.
The agreement will see Sela help set up a fan zone outside St James’ Park, while the club is set to unveil its new away kit later this summer, which again is white and green, the same colours as the Saudi national team jersey.
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