'I Suspect...' - Stefan Borson predicts what Newcastle will actually earn from Adidas deal

Newcastle United’s kit sponsorship deal with Adidas is likely to be worth considerably less than £40million to the club next season.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider the deal is probably going to be worth closer to £30million for the north-east giants.

Newcastle have struck a multi-year kit manufacturer deal with the German sportswear company starting in the 2024-25 season.

Alongside their Adidas partnership, the Premier League club also announced a multi-year deal with UK-based retailer JD Sports as their official sports retail partner.

Football Insider revealed on 7 June the Tynesiders are only set to pocket a small portion of commission – around six to eight per cent – from each sale of the new kit.

The Athletic reported on 7 June the Adidas deal could be worth as much as £40million a year to Newcastle – marking a significant rise on the £6million the club received from previous kit sponsor Castore.

Newcastle United to earn around £30million from Adidas deal

But Borson believes any suggestion Eddie Howe’s side could initially earn £40million from the deal is “wide of the mark”.

He told Football Insider: “I suspect that the numbers that are in the press are just the gross top-line number as opposed to the number they will actually get.

“I suspect the number they actually get will depend on how much they sell.

“If they were to only sell the minimum amount, they probably wouldn’t make very much money at all, certainly not in the first year because they have got all the setup costs.

“People need to understand when you look at a lot of this stuff across the game that you’re not always comparing like for like.

“I suspect that top line is probably worth nearer £30million of revenue and I think they will only make a relatively small amount bottom line initially.

“If they can be successful on the pitch and the product is of a high quality and all the other items stack up in terms of being interesting for the consumer, then they will make more.

“But I think talk of it being worth £40million to Newcastle or implying they have got £40million bottom line, I think that’s wide of the mark.”

In other news, Newcastle could now accept bids for attacker.

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