Newcastle to smash £80m barrier, off-pitch announcement expected soon

Commercial revenue is absolutely central to Newcastle United’s lofty transfer ambitions under the Saudi Public Investment Fund.

Limited by the Premier League’s rolling three-year loss limit of £105m, the club know that they need to greatly increase income to unlock PIF’s billions.

They have, by any measure, been spectacularly successful in this endeavour, with commercial income expected to have doubled by the time they release their accounts for 2023-24.

Thanks to Newcastle’s new deals with Adidas and Sela, the Magpies income from sponsorship and merchandise will likely hit £80m in 2024-25.

It will be a high-wire balancing act for Newcastle to comply with PSR again this season, but the new commercial deals have given them every chance of doing so if coupled with some on-pitch success.

And, with Newcastle stepping up their pursuit of what would be a marquee signing in Crystal Palace’s Marc Guehi, they will be looking to maintain their commercial trajectory.

The latest news will, therefore, be welcomed by fans and executives at St James’ Park alike.

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Newcastle United strike commercial deal; upgrade expected soon

Newcastle are currently on tour in Japan.

As well as playing exhibition matches against Urawa Red Diamonds and Yokohama F. Marinos, the club has used to tour for commercial purposes.

Last week, Newcastle released their away kit to a rapturous reception, using a Japanese theme in the marketing rollout.

Earlier in the week, Newcastle announced that Savvy Games Group would be the official sponsor of the tour in what will likely be a deal of modest value.

However, according to sports business expert Łukasz Bączek via X, the group are expected to upgrade its involvement with the club on a more permanent basis in future.

While no other details about what a deal might look like have been presented, a partnership with Newcastle is likely to be worth around £1m.

TBR Analysis: Do increased commercial revenues mean Newcastle can afford to keep Bruno Guimaraes and Alexander Isak?

While a permanent deal with Savvy Games will not move the dial much in isolation, it is part of a much wider and more impressive commercial picture on Tyneside.

The value of the Adidas deal might be overstated, with the £40m figure likely to be heavily contingent on sales and sporting performance, but it is an upswing on the previous deal with Castore in any case.

Newcastle to do need to move to more of a player trading model regardless of commercial income, but it does give them a buffer in terms of not being forced to jettison their biggest stars this summer.

The likes of Bruno Guimaraes, Anthony Gordon and Alexander Isak are all on the radars of top clubs and, if Newcastle are in a poor position in January, could provide a PSR lifeline if needed.

However, the increase in their revenue base means they have a degree of flexibility to wait until that juncture does or does not arrive.