The Saudi owners of Newcastle are ready to direct in millions of pounds of sponsorship cash to bolster Eddie Howe’s quest for European football.
Chief exec Darren Eales has warned that the club haven’t got a blank cheque to keep repeating their £210m transfer spend in 2022, or emulate what Abu Dhabi-owned Manchester City after their takeover, because of financial fair play rules.
So the club’s 80 per cent stake-holder, the state run Public Investment Fund of Saudi Arabia, which controls $608bn of assets, is poised to use companies they own, or influence, to back Newcastle by striking sponsorship deals.
Eales is in the process of bolstering Newcastle’s commercial income and turnover which at £170m is a third of their top four rivals.
That will in turn boost their long term transfer spending power and keep them within FFP rules. St James’ Park is being lined up for a naming rights deal, but only if fans give the go ahead and it could still include the St James’ title.
With the ground now a 52,000 sell out, Newcastle need more seats, but they are unlikely to move from their famous city centre spot, and Eales said: “Can we expand it? That’s a champagne problem.”
Newcastle have been linked with a January transfer window move for James Maddison of Leicester and Moussa Diaby of Bayer Leverkusen, both summer targets. Eales said: “We have to bring in commercial revenues to let Eddie and Dan put the best team on the pitch we can.”
Asked if the PIF would line up sponsors, Eales said: “Absolutely. It would make sense in terms of some of the doors that can be opened by PIF. They invest in a number of countries globally. Saudi Arabia also has a young growing population and football is the no1 sport in terms of commercial value and having an association with Newcastle.
“We have some challenges. We are not like Man City when they had the takeover, or Chelsea. We have not got a blank sheet of paper where you can spend what you want. There are regulations in place. We have to get from a to b.”
The Saudi regime has brought in eight new players so far, and January will be about seeing who is available. Eales said: “Summer windows are when you want to do your business and plan for. January tends to be a bit inflated. We will always be looking at it and evolving the strategy. There will always be the potential to do things. Players may move out, then bring players in. Summer will be the target from a strategic point as they have more time to bed in.
“We have the potential to build something great. We have a long way to go. Around the world of football there is a focus on Newcastle and an exciting storyline. Everyone talks about the city and the fans. One club, one city, one region.
“Brands want to be on the journey at the start. We are on an exciting journey and tick boxes for what global brands want. There is a heck of a lot of interest from the storyline.
"This is a crazy city in terms of the fans. Global football people are excited about what Newcastle want to become.”
