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Drop in shirt sponsorship deal revealed.

Posted on August 4th, 2010 | 98 Comments |

Between a rock and a hard place...
Between a rock and a hard place...
It’s not really a new story, but it is doing the rounds again so is perhaps worth a second look, although some of it doesn’t make for positive reading.

A new table has been revealed showing the value of sponsorship deals from each club in the Premier League. The revenue streams from shirt sponsorship at all clubs has increased, apart from at two clubs. On the plus side, revenue has dropped at Sunderland, despite them believeing that they are a big club. On the downside, our revenue has also dropped.

To be fair, part of the drop in revenue can be attributed to factors beyond the control of our football club. The credit crunch bit hard, and it bit Northern Rock particularly hard, meaning that any sponsor deal with them was never going to be as extravagant as it was previously. Add a relegation onto that, with the drop in exposure that goes hand in hand with that, and it is clear to see why the money we are being given to carry a name on our shirt has pratically halved.

It was way back in 2006 when our association with Northern Rock began as the then chairman, Freddy Shepherd, signed a four-year-deal for £4.8 million per year that meant the famous black and white stripes of Newcastle United began to carry the logo of the financial institution.

The deal was quite lucrative at the time, and near on £5 million coming into the club every year could only have been a good thing, right? Well it would have been had Freddy Shepherd not taken the sponsorship money all up front and spent it on Michael Owen, which never worked out for Newcastle, no matter which way it is painted to look.

That move meant that we have had no sponsorship money coming into the club for the past four years, which hasn’t benefited the club at all, especially when we got so little return from the player it was all invested on. That has changed now, and we do at least have new deal in place, but it is nowhere near as lucrative as the old one was.

From a four-year deal that totaled nearly £20 million, we have now dropped to a four-year deal that is worth between £1.5 million and £10 million, and that has strings attatched. There is a review point two years into the deal, but as it stands the maximum payment is £2.5 million a year and is dependant on Premier League football, so we should get money for this season. Get relegated however, and it drops dramatically.

How does our deal compare to other teams though? Not that bad is the answer. Our relatively small £2.5 million a year deal (assuming Premier League survival) is still the tenth most lucrative deal in the Premier League. Naturally, we are getting trumped by the likes of Liverpool and Manchester United, who both have a £20 million a year deal in place, but we compare quite well with clubs like Everton who are only slightly ahead of us. Not bad for the new boys eh?

You can view the full table here.

Our sponsorship deals can be improved, over time, but at least we are beginning to get new money into the club. It may not have been as much as it was in the past, not that it mattered as we never saw any of it anyway, but it is a small step in the right direction.

A club with the fanbase the size of ours will always be a draw for sponsors, but we must be in the Premier League to draw them in. For that, and many other reasons, survival is of paramount importance this season.

NUFCBlog Author: toonsy toonsy has written 643 articles on this blog.

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98 Responses

  1. If only our sponsorhip money was equal to Liverpool or even Spurs we would have been a Real force.

  2. This regime have tainted the brand to the point that no major business would touch us with a bargepole. Or if they would, they wouldn’t pay us what a club this size, with our fan base and worldwide brand should be looking at attracting.

  3. Stuart- Fulham reached the final of the Europa League last year and are becoming an upper-half premier league club from an elevator team between Championship and PL. Signs of positive development, stg a business wants itself to be associated with. Now compare that with our credentials…

  4. Northern Rock are being tight.
    We’ve stuck with them through their ‘crisis’ & they’ve shit on us.
    We should move on soon as someone else is prepared to pay better wedge.

  5. HUNmag

    Totally disagree we may have delusions of grandeur according to the southern rags but we are a much more marketable worldwide brand than shit clubs like Fulham

  6. CLiNT FLiCK says:
    August 4, 2010 at 12:56 pm

    “Northern Rock are being tight.
    We’ve stuck with them through their ‘crisis’ & they’ve shit on us.”

    That’s what bankers do, Clint.

  7. the biggest crap is got to blackburn rovers taken for 300 mil! the club is only worth 10p.i dont get this reporters who think this club is worth anything.how are they allowed to write these stories.and why write this.

  8. if you notice at the time of this so called economic slow down,northern rock went into crisis because the powers that be and through the controlled media,stated telling everyone they were in crisis then bobs yer uncle everone started taking their money out,thus making it a reality.

  9. Then the news media ran with it, showing growing cues at every news item, for weeks.
    That’s how it went with the big crash in the 20’s.
    Interestingly, there were only ‘older’ people in that queue.
    Some will be freaked by anything the media put out, however wide of the mark it may be.

  10. Stuart,
    that blackburn item has to be bullsh.
    Just trying to drum up biz.

    & i thought the liverpool buyers were now known, the plot thickens.

  11. liverpool have 6 bids on the table?that dick that was trying to sell toon was on ssn saying they are under-valued at 325mil
    sick of this shite

  12. Might just be me getting bored in work… but there has not been much in the line of transfer reports this morning and when this has happened before we have then suddenly signed someone!

    Prob just wishful thinking … :(

  13. Let’s not get carried away with the ‘price’ that Liverpool are supposed to be.

    http://www.clickliverpool.com/sport/liverpool-fc/128213-deloitte-report-delivers-financial-wake-up-call-for-liverpool-fc-.html

    If a bid of £325m has been lodged that’ll include a portion to cover the £250m debt that it’s got. In reality, that’d put the club’s worth at £75m.

    So, Newcastlee United are near debt free and aiming to stay that way. Assuming we start progressing into Europee etc and stay debt free (ish), then the club’s gonna be worth a few quid.

    Early days yet, but it may well be that fans’ll come around to MA.

  14. Stuart – you are aware that the entire planet was suffering from one of the largest economic crisis’ in history while our club was up for sale???

    Fair enough if you don’t watch the news like but its hardly a coincidence that this sudden flurry of potential buyers are coming out of the woodwork at the same time as global banks have started announcing astronomical profits again.

  15. Greetings from sunny Italy.
    Milan not interested in Ben arfa anymore they want to keep dinho according to Italian papers.
    Ben arfa looking more and more likely?
    Fingers crossed !

  16. lesh says:
    August 4, 2010 at 1:47 pm

    Near debt free?

    How near to debt free is £110m in debt??

    Toon Chicken says:
    August 4, 2010 at 1:48 pm

    We still had all these interested parties though (Apparrently).

    Something put them off about the club in 2008 and last October.

  17. If I remember correctly, at the time when club was up for sale one of the interested buyers relieved that MA simple showed no interest in selling the club and didn’t even bother to contact him to get the further… whole selling of the club was one farce.

  18. eastcoast,
    we the people own their ass now.
    :)
    Doubt we’ll get any divedend split though, some how?
    ;)

  19. CADBURY,me and clint belive he never wanted to sell club,just a bloody act
    maybe he thought it would worry us and accept him, god knows what goes on in his heed

  20. Wether we want to accept it or not, Liverpool are a huge club with global appeal & still the most successful english football club (I think), therefore they’re far more attractive to the latest group of global carpet baggers that want to dip their snouts in the epl trough than we are. Time will tell, but I wouldn’t be supprised if we didn’t have new owners within a couple of years if not sooner.

  21. We still had all these interested parties though (Apparrently).

    ….

    A cross between none of them having the money and the club running at a huge loss every season had something to do with it.

  22. lads are future looks bright!are under15 are doing well in the world cup of premier teams.we could be the new barca bringing them into are first team.we are the only english team to have made it to this stage.thier was over 9,000 teams when it got going.. so to qualify must have been a a very hard.so lets give the boys all the support to do well.they have already made me proud and they say we will have some great players in the future.

  23. I see our under 15’s won the second game 5-0 in the Nike cup.

    Adam Campbell taking the piss apparently.

  24. the german side have held talks with ben arfa and they want him and hope to sign him reports say today

  25. Rangerman says:
    August 4, 2010 at 2:58 pm

    Opposed to Liverpool losing £30m a year, being £350m in debt and needing another £500m for a new stadium?

    Forget all about this brand crap. It’s about money – We would provide a much quicker ROI for any investor.

  26. we should of had ben arfa in last week but the powers that be drag there feet,shame like would of been a canny signing..

  27. Ah well, it’s a good job the player, who holds all the cards in this, wants to come here and not go to Hoffenheim then ;)

  28. Stuart79 says:
    August 4, 2010 at 2:11 pm
    lesh says:
    August 4, 2010 at 1:47 pm

    Near debt free?

    How near to debt free is £110m in debt??

    You’re right to raise that Stuart, but if we gradually progress (with resulting increased revenue and prudent financial management) then the £110m is going to be eroded.

    The result being a higher profile club with growing international and media interest. That represents a Liverpool sort of situation where the attraction is global revenues.

    With time and patience, we’ll get there – the point Noir’s making too….. I think?

  29. Of course it’s about the brand! Liverpool are one of the biggest clubs in the World with a huge global appeal.

    They’ve only been losing money because of the interest on their debt that was taken out to buy the club in the first place, if an offer gets accepted then that money will instantly go to pay off the debts and Gillette and Hicks will split what is left over, if anything.

    You can seriously be trying to compare them who have a huge World wide fan base, genuine top quality players who will fancy there chances of CL qualification this year over us last year, a biggish club in the championship losing a ridiculous amount of money just on running costs.

    And people get offended when they say our fans are deluded.

  30. Shit!
    hoffenheim are falling over themselves to gush about BA, how smarmy can you get?
    A. Not much more. :)

    Anyhoo,
    they wanna pay over a million years, don’t they?

    & where/who/what the f*** is hoffenheim?

  31. Toonsy

    He could want to go to the harlem globetrotters for all that matters, If marseille dont accept a bid from us then he can either stay where he is which looks near impossible as he’s fallen out with everyone there or move to a club who marseille are willing to do business with IE Hoffenheim. :cry:

  32. ashley take a gamble and get ben arfa.b4 it is 2 late.i still think we are waiting on cleverly b4 we go for him.if he doesnt come here we will then go for ben arfa but we cant wait cleverly might not come then say if ben arfa has already gone.loan deal more then a buy for ben arfa i think.

  33. some people need to get things clear

    We owe 110 million to Ashley so are hardly debt free

    We didn’t stick with Northern Rock through their crisis as we’d already spent all the money they gave us up front and had signed a contract with them

    Northern Rock was the best deal on the table at renewal time

    Liverpool are a much bigger club worldwide than us, thats what happens when you’ve been in Europe and actually winning things over 25 years or whatever

    We’ve won jack since fairs cup ( please don’t include intertoto or any other mickey mouse cup)

    Some people on this blog are deluded and think we’re a massive draw outside the north east – whilst we do have a fanbase outside the NE, it’s nowhere near man u’s, arsenal or liverpools

    We should be able to compete with most teams outside the top 8 or 9 this season if we can get someone to score goals, maybe carrolls the man, we’ll soon find out

    roll on man utd

  34. dont worry mackems u have just bought 50 central defenders u are going places.bram the man is going to take u to the top of the world of feckups.

  35. Good afternoon, lads (n lasses).

    Hope to God we’re in seriously for Ben Arfa. Could be a great acquisition. I’m hopin’ beyond hope like that Best and Xisco could be our secret weapon. We’ll see..

    As for the Northern Rock thing.. when is our sponsorship deal with them up? Wonder who else we’d go with… ?

  36. stevep,wouldn’t disagree with any of that,on the other point i’m glad cleverley is finally on the move.
    i’m effing sick of hearing about him,we must have other irons in the mull of kintyre.

  37. Our NR sponsor deal was over.
    I’m sure we coulda dropped ’em like a hot brick, the shit they were in, but didn’t.
    We coulda made another deal this summer.

    Obviously liverpool are a bigger draw than most clubs, worldwide.
    Still gotta buy their massive debt though, good luck to ’em, they’re gonna need all they can get.

    ice,
    aye mate.
    Are they newly promoted?

  38. o’hurley,aye this might be jabba’s much vaunted wow signing series,lets hope we get in someone with legs and foresight,plus a good football brain.

  39. What hold did Wise have on the fat man, He managed to get Ashley to part with £6m for a woeful excuse for a footballer like Xisco, Yet He wouldnt cough £3m for Schweinsteiger when Keegan asked him to and he wont now give £6m for Ben Arfa now Hughton wants him to…

  40. Trojan,
    me too, sick of hearing about these 2.
    & we don’t know if any of it is kosher anyway.
    It’s in the rags, so it’s bullsh, usually.
    & his agent is trying to raise the price etc.
    What a big mouth to the press.

  41. @59

    why is a mackem, called a mackem? iv e been a toon fan since i was a child, but live in cardiff. dont know what it means but still call them smelly unwashed mackems ;)

  42. Anyone got an insight as to who actually does our transfer negotiations? Won’t be MA. not CH, Derek hasn’t got a clue. Actually maybe that’s – it effin Derek!

  43. cleverly has gone nowwhere we will find out after tonight or weekend if he is in their plans.like i say we will get 1 of them.not both unless we wait and they both fu,koff.

  44. nasher..
    The term is derived from Mack’em and Tack’em, dating from the early ship building industry (i.e. the people on Wearside ‘mak[e] them’ and other people ‘tak[e] them’) and started off as an insult to the people of Sunderland by the Geordies. In recent years, however, the people of Sunderland have taken the name to be part of their identity as Wearsiders.

  45. nasher,it’s a funny one that,mackems themselves will say it’s due to their ship buildings days where they would build the ships on the wear,then the ships would be taken to london to be fitted out.so the sunderland shipbuilders would mak the ships and the cockney’s would tak them so the name mackem and takem would be used.
    geordies claim they made up the would as an insult in around 1980 it supposedly stared appearing.

  46. Tin hat time :(

    I’m waiting for the dummies to be spat about us missing out on a player that we haven’t even had a proper quoted link to :roll:

    Maybe, just maybe, we don’t want him, and his agent is using us as a namedrop ;)

  47. ice,
    i have heard of ’em, but don’t think they’re a regular ‘hot bed’ of football prowess like.
    ;)

  48. Nasher says:
    August 4, 2010 at 3:41 pm
    @59

    why is a mackem, called a mackem?

    CLiNT FLiCK says:
    August 4, 2010 at 3:46 pm
    ‘Mack’em & tak’em’

    Mack=make and tak=take

    Clint’s there it’s from the days when Sunderland was the buggest shipbuilding town in the world and the Newcastle shipowners would, among others buy the Sunderland built ships.

    Sunderland wasn’t a commercial centre for shipping and maritime trade like Newcastle, Cardiff, Bristol, Lodon, Liverpool etc and hence, the shipbuilders of Sunderland would say [We] mackem and [they] takem.

    Hope that helps.

  49. hi all,im new here,been reading the blog for ages and thought id get involved at last! good day to you all my fellow toon army members.anyways been reading on the other blog about an agent linked to ben arfa who has allegedly been spotted in and around ne1,managed to get an email of to him so im waiting for a reply,asked if benny was coming or not,doubt il get a reply like! doesnt anybody reckon we should be trying to get in o’hara or kp boateng? also i think we have a perfectly good understudy for lb in tamas k,so we shouldnt be looking to waste our funds on a lb cover,we need players who can start not cover and make an impact on team.

  50. Alreet Salty, I think O’hara is a decent player but don’t think he’d move up here but I think we need out and out wingers imo.Kadar is ok at a push at lb but he’s naturally a cb so I would prefer a natural lb.Thing is we need to spend are funds where they’re needed most so it’s where CH thinks we need to spend.I just want to get the season underway now :-)

  51. van alholt cover for enrique.
    weiss cover for both wings

    the both of these will be future stars that can grow with us.

    season long loan for robbie keane. (if thats still a possibility)

    bingo!

  52. alreet ritchie.would absolutely go quackers if we got bellers back on loan from citeh too,i reckon bellers and carroll up front would be awesome.just in the middle of creating a nice joey barton tache for meself the now i might add

  53. @97 that sounds better to complete the window imo.

    van alholt
    weiss
    keane/bellamy would prefer bellamy

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