Newcastle United agree bumper new shirt sponsorship deal with Middle Eastern company

Newcastle United have reportedly agreed a new shirt sponsorship deal ahead of the 2023-24 Premier League campaign. The Magpies have been searching for a lucrative deal after negotiating an early exit with Fun88.

Fun88 first signed a three-year sponsorship deal with United in 2017 when then managing director Lee Charnley flew to China to sign the contract. That was further extended in 2020 in what was described as a “long-term deal”.

But ambitions have changed drastically since the Public Investment Fund of Saudi Arabia, PCP Partners and RB Sports & Media acquired the Magpies from Mike Ashley in a £305million deal in October 2021, and sponsorship deals like Fun88 have become insufficient.

Newcastle simply need a larger income from sponsorship deals in order to boost their spending power in the transfer market and stay in line with Financial Fair Play rules.

Speculation has surrounded who will take over from Fun88 and according to The Times, the new deal is with a company from another Middle Eastern country rather than Saudi Arabia. Significantly, United will go from earning under £8millon from Fun88 to £25m from their new sponsor.

With Eddie Howe’s side edging closer to sealing Champions League qualification - eight points clear of fifth place Tottenham Hotspur - for the first time in 19 years, the club has been in a position to demand a lucrative sum.

As per The Times, Champions League football would guarantee at least £50m from participation, prize money and the TV pool as well as opening up new commercial possibilities as a result of much greater exposure.

United’s success on the field this campaign has attracted the TV cameras. Newcastle are set to receive £34.3m in facility fees, a huge increase on last season’s £19.8m.

Having spent around £220m on new players since PIF arrived in October 2021, Newcastle have had to be mindful of FFP. Sponsorship deals such as this will bolster the club’s spending power as they bid to become an English and European force.