Newcastle United are set to unveil a brand new sponsorship with another Saudi Arabia-based company that could be worth around £3m annually.
The club have agreed a “multi-year” deal with flag carrier Saudia which becomes the club’s official airline partner.
A source told i it reflected the club’s new approach to sponsorship – focusing on international brands that will bring in “substantial” pay days for the club as they look to “super-size” commercial revenue to give them further room to manoeuvre in the transfer market.
It also confirms the growing relationship between Saudi Arabia and the club, whose shirt sponsor is PIF-owned events company Sela. As i revealed earlier this year, that £25m-a-year deal was given the green light by the Premier League, who introduced stringent rules around associated party sponsorships following Newcastle’s takeover.
Newcastle also play in a green “Saudi” themed third kit and recently played host to the Saudi Arabian national team for two sparsely attended friendlies. But it is these increasing commercial ties that may raise eyebrows in rival Premier League boardrooms.
Because Saudia is owned by the Gulf state the deal will also be subject to the Premier League’s fair market value rules although sources have told i it has already been through the ratification process.
Saudia has recently gone through a rebrand and now its logo will be displayed on perimeter advertising hoardings.
It is understood the deal is viewed as an extension of the club’s previous link-up with Saudia as an official partner of their winter break trip to Riyadh for a training camp.
Another trip to Saudi Arabia in 2024 is being considered, with the January winter break weekend circled as a possible date.
The Saudia deal – teased by the company on social media with a post that read “Stay Tooned” on Tuesday – is set to be confirmed on Thursday as the club continue to work to increase their revenue streams.
At the moment the club’s commercial revenue lags behind the Premier League’s biggest clubs, which restricts the amount they are able to spend on players. But CEO Darren Eales has spoken of ambitious plans to double commercial revenue every two years.
Newcastle are still looking to add a training kit and training ground sponsor although stadium naming rights would prove controversial given the history surrounding St James’ Park.
They will get a further boost when Adidas take over the kit manufacturing contract from Castore in a deal that was announced as the “biggest in the club’s history” when it was revealed earlier this year.
There are further, under-the-radar deals being struck by the club.
Stay Tooned…
— Saudia (@SaudiAirlinesEn) October 17, 2023pic.twitter.com/3gFsFn3a3M
Just last week the club clinched a new licensing deal with Chinese trading card company Daka, who work with Barcelona, Manchester City and Borussia Dortmund.
The partnership is also intended to raise the club’s profile in the Chinese market.
“That is typical of the kind of market we are now looking to operate in. There’s been a change of focus and we’re aiming to compete with the best,” a source said.
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