Newcastle United have confirmed a “multi-year” sponsorship deal worth more than £25m-a-year with PIF-owned Saudi events company Sela in what will be the first major test case of new Premier League fair market value rules.
The club announced the deal on Friday with Sela, which is owned by PIF and according to a Newcastle press release is now targeting global expansion. They have brought global events to and developed property in Saudi Arabia.
i understands that the value of the deal is “upwards of £20m-a-year” with various performance-based clauses in the contract which could be triggered.
Newcastle chief executive Darren Eales said the decision to go with Sela came after a “highly competitive commercial process” and it is the first major sponsorship deal since the takeover 18 months ago.
In a week in which the focus has been trained on Saudi influence in sport after the seismic merger between PIF-backed LIV Golf and the PGA Tour it will prompt further debate about the growing aspirations of the kingdom.
Critics have accused Newcastle’s owners of sportswashing and this deal further strengthens ties between Saudi and the club. The away kit Newcastle will unveil later this summer is again white and green, which are the same colours as the Saudi national team jersey.
It will now have to go through an independent panel to assess whether it represents true market value.
The deal certainly represents a huge uplift on the £7m-a-year that former front of shirt sponsors FUN88 were paying but the club believe that their higher profile since the Saudi-backed takeover and – crucially – Champions League football make the deal a certainty to pass the fair market value regulations the Premier League agreed after the PIF-funded buy out.
As part of the deal Sela will help set up a fan zone outside St James’ Park and Newcastle hope it will cement the club’s popularity in the Middle East. They want to tap into enthusiasm among the young Saudi population for football and become the most-supported club in the region.
CEO Eales said: “We are delighted to welcome Sela as our new front-of-shirt partner.
“This partnership follows a highly competitive commercial process and we believe we have found the perfect front of shirt partner to support us in reaching our objectives on and off the pitch.
“We team up at an exciting time in the history of both organisations given both share an ambitious vision to expand their brands globally.
“Fan engagement is central to what we do at Newcastle United and, in Sela, we are partnering with an organisation with shared interests that has delivered incredible events and experiences to millions of people over many years.
“Closer to home, we will work closely on the design and operation of a new fan zone area at St. James’ Park, taking inspiration from Sela’s incredible properties elsewhere.”
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