As is usual with the Metro, it now has a veritable cornucopia of titles chosen my their crack team of headline writers, sub-eds or whatever. However, my original title for it was the same as this piece, ie “Sports Direct get free advertising, but what about Dunlop, Firetrap, Cruise etc?” so I’ll stick with that one here.
On the piece itself, well we all know that Sports Direct don’t pay anything for all the advertising at St James’ Park and the club’s Benton training ground. However, some of you who might not follow Mike Ashley’s ever expanding business empire quite as closely as I do may not know that there are several other Sports Direct sub-brands such as Dunlop, Firetrap and Cruise who are also advertising at St James’ Park on a fairly regular basis. (more…)
Inspired by members of the NUFC board saying Sports Direct only takes up unused advertising space at SJP, as well as Newcastle United’s lousy commercial revenue figures, I decided to do a little number crunching and research.
Referring to figures from other clubs using Deloitte’s “Annual Review of Football Finance” and all the other sources I could find, as well as looking at other revenue streams for the club using the club’s last published accounts. I estimate that as per Newcastle United’s last published accounts (for the 2011-12 season), the club is only getting just over half the commercial revenue it should be.
According to my research, if Newcastle United were an average Premier League club with around 27% of the club’s revenue coming from commercial sources such as shirt sales and sponsorship, we should be getting around £25 million per season in total when we are actually only getting only a paltry £13.8 million. Having written that, with the third highest average attendances in the Premier League, some might say that these figures could be skewed somewhat as Newcastle United might be expected to get a higher percentage than normal from matchday revenue. However, they were exactly the same as the average for the whole Premier League, around £21.5 million of £93.3 million, or 23% of total turnover. (more…)
Is there any truth in the rumours that Virgin Money are in talks about sponsoring Newcastle United by way of the shirts and stadium naming rights?
According to a site called ‘Marketing’, Virgin are in talks with Newcastle United about a possible shirts and stadium sponsorship deal. The rumours about such a deal have been bubbling along for a while but I’ve never been sure how much strength there is in them.
Of course it was Virgin Money who took over Northern Rock, our previous sponsors, and I did just wonder if assumptions had been made because of that.
The ‘Marketing’ site stresses that no deal has actually been struck but they feel that Virgin Money are a likely fit for such sponsorship. They cornered an ‘executive’ from ‘brandRapport’ in the middle of his cheese sandwich and he had this to say:
“Virgin Money could benefit enormously from taking on the Newcastle shirt sponsorship. The passion and loyalty of the Newcastle fans is legendary and the fans could definitely see it as a very positive move and confirm Virgin Money’s commitment to the area.
“The Newcastle shirt is one of the most iconic, most recognised and highest-selling shirt in the Barclays Premier League.” (more…)
I’m not talking about this season, although life has been largely fantastic at St James’ Park which now boasts the only unbeaten home record in the football league. I’m talking more on the grander scheme of things, and the news today is that Newcastle United are ‘proud’ to announce a new sponsorship deal with a company called Fantastic Telecoms. Never heard of them? No, neither have I, however they are now the clubs “official telecoms partner”.
On the face of it, it doesn’t sound that bad. But when I read more into it, some alarm bells started ringing. Perhaps i’m reading too much into it? Perhaps the whole renaming debacle of a few months ago that touched a nerve with me has left me with some doubt as to just what the implications of this deal are?
Fantastic Telecom are part of the much larger MDS telecoms group, the deal will offer Newcastle United fans phone and broadband packages in a more cost effective way for the consumer. As an added sweetener, 10% of all subscriptions will be donated back to the club to invest in the youth setup. (more…)
In the latest salvo of the Ashley counter offensive, Newcastle United’s managing Director, Derek Llambias, has been revealing the depth of Mike Ashley’s financial black hole in an interview for Radio Newcastle. He moaned about the financial meltdown involved when a monster £70 million wages club that is supposed to be geared up for European competition get relegated and much more…
What follows is Llambias’s exchange with Radio Newcastle’s Mick Lowes.
On the financial consequences of relegation, Llambias said:
“It’s been extremely painful – it was a shock, it was unthinkable. We did have a business plan in place at the time that we just put into a cupboard, because we thought we never needed to use it.
“We’ve had to move on since then and it’s given us an opportunity to bring the wages down to an acceptable level in the Premier League, but not in the Championship. (more…)