As the Saudia airline sponsorship raises questions among Premier League competitors, Newcastle is under review.
Newcastle’s agreement with Saudia will need to be approved by the Premier League, but insiders have told me that it has already gone through all necessary inspections.
Newcastle United is about to announce a brand-new sponsorship with a different Saudi Arabian corporation, which may be worth up to £3 million a year.
The club and Saudia’s national carrier have reached a “multi-year” agreement, making Saudia the club’s official airline partner.
It reflected the club’s new sponsorship strategy, according to a source, which focuses on global companies that will generate “substantial” pay days for the club as they try to “super-size” commercial earnings to allow them more wiggle room in the transfer market.
Additionally, it emphasizes the strengthening ties between Saudi Arabia and the team, whose shirt is sponsored by Sela, a PIF-owned events organization. As I stated earlier this year, the Premier League, which enacted strict regulations on linked party sponsorships in the wake of Newcastle’s takeover, approved the £25 million per year deal.
Newcastle recently hosted the Saudi Arabian national team for two sparsely attended friendly and wears a green “Saudi” themed third kit. But it’s these deepening business relationships that can cause concern in Premier League boardrooms of rival clubs.
Although sources tell me the purchase has already been ratified, because Saudia is controlled by a Gulf state, it will also be subject to the Premier League’s fair market value criteria.
Saudia recently underwent a rebranding process, and as a result, perimeter advertising hoardings will now feature the company’s emblem.
According to what is known, the agreement extends the club’s prior partnership with Saudia as an official sponsor of their training camp during the club’s winter break trip to Riyadh.
The January winter break weekend has been marked as a potential possibility for a second trip to Saudi Arabia in 2024.
Tuesday, the business teased the Saudia transaction on social media with the message “Stay Toned.”
The club’s commercial revenue now falls short of that of the Premier League’s top teams, which limits the amount they can spend on players. Aiming to increase commercial income every two years, CEO Darren Eales has mentioned some lofty objectives.
Newcastle is still hoping to add a training facility and uniform sponsor, while naming rights for the stadium would be contentious given the St. James’ Park’s past.
When Adidas acquire Castore’s contract to manufacture the team’s uniforms—dubbed the “biggest in the club’s history” when it was first unveiled earlier this year—they will give them a further boost.
Additional, covert agreements are being made by the club.
With the Chinese trading card manufacturer Daka, which also works with Barcelona, Manchester City, and Borussia Dortmund, the club just last week signed a new licensing agreement.
Additionally, the agreement aims to increase the club’s visibility in the Chinese market.
“That is indicative of the market type we are now seeking to operate in. We’ve switched our priorities, and now we want to compete with the best, the person stated.
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