Breaking news: Newcastle seize FFP boost as £52m and £75m deals struck at Premier League HQ

Breaking news: Newcastle seize FFP boost as £52m and £75m deals struck at Premier League HQ

Since the Saudi Public Investment Fund acquired the Magpies over three years ago, increasing commercial income has been one of their top aims.

According to the Premier League’s Profit and Sustainability Rules, every pound they make from sponsorship and product sales is another pound they can use for hiring.

However, their revenue in this division is not totally independent.

Newcastle’s primary source of income is the Premier League itself, since clubs get revenue from league-wide commercial deals and television revenue.

Newcastle will be happy to hear that the Premier League has struck two huge new deals with well-known companies.

Since the Saudi Public Investment Fund acquired the Magpies over three years ago, increasing commercial income has been one of their top aims.

According to the Premier League’s Profit and Sustainability Rules, every pound they make from sponsorship and product sales is another pound they can use for hiring.

However, their revenue in this division is not totally independent.

Newcastle’s primary source of income is the Premier League itself, since clubs get revenue from league-wide commercial deals and television revenue.

Newcastle will be happy to hear that the Premier League has struck two huge new deals with well-known companies.

Premier League strike two new big-money sponsor deals

It is impossible to predict exactly how much Newcastle will bank because commercial revenue in the Premier League is distributed partially on an even basis and partly in accordance with performance.

However, if they have a successful season, they might earn an eight-figure salary from the agreements as well as from the Premier League’s other current partnerships.The Premier League said yesterday that Guinness, its official beer partner, has signed a global sponsorship agreement with the league.

It was widely reported the day before that the Premier League and British bank Barclays had extended their long-standing agreement.

The two agreements, which are valued at £52 million and £75 million, respectively, would directly assist Newcastle.

Will Newcastle breach PSR and get points deduction?

Newcastle is one of the few teams that is on the verge of violating the terms of financial fair play, which are now known as profit and sustainability, or PSR.

They are on track to surpass the Premier League’s permitted loss cap of £105 million over three seasons, having suffered significant losses in recent years even after accounting for this season’s Champions League revenue.

They must approve player sales by June 30th, the deadline for the PSR assessment window, in order to be in compliance with PSR.

Like Everton and Nottingham Forest in 2023–24, they risk a fine and a deduction of points if they don’t comply.

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