Finance Guru: Newcastle owners made ‘surprising’ move after sponsor deal agreed

Newcastle United’s owners have made a “surprising” decision to not use their connections in Saudi Arabia to agree a training ground and sleeve sponsorship deal. 

That is according to former Manchester City financial adviser Stefan Borson, who exclusively told Football Insider the Saudi Public Investment (PIF) has shown a lack of aggression with its activity.

PIF took over Newcastle in October 2021 after agreeing a £305million deal with former owner Mike Ashley.

It was confirmed earlier this month KNOX Hydration has become the Tyneside club’s first-ever training ground and training kit sponsor after agreeing a three-year deal.

Newcastle will earn £6m a year from the partnership with the South African sports drinks company. 

Why Newcastle are facing ‘big challenges’ after financial reveal

Newcastle have faced questions over their finances after it was revealed St James’ Park was sold to another company owned by the club’s shareholders last season.

Meanwhile, the Magpies are expected to have breached Uefa’s financial rules, which will see them enter a settlement agreement with the governing body. 

Speaking exclusively to Football Insider, Borson discussed Newcastle’s sponsorship deal with KNOX Hydration and PIF’s ambitions. 

“We know that they’ve got big challenges because they will be in a settlement period with Uefa,” said Borson.

“They basically confirmed that in their accounts, so we know that to start with. Then there is the question of how ambitious do the owners want to be?

“Now, it looks like the owners are actually quite conservative and don’t really want to put loads of money in, as surprising as that is.” 

How Newcastle could have agreed more lucrative sponsor deal

Borson revealed the training ground sponsor deal will be worth less money than what a Saudi company would have paid.

“If you see the training ground sponsor, it’s actually not a company with any Saudi connection, which is surprising in many ways,” said Borson. 

“It means that obviously it’s better from a regulatory perspective because it doesn’t give you any issues with the Premier League and also doesn’t give you any issues with Uefa.

“But of course, the likelihood is it’s going to be slightly lower financially than you might have been able to get from a PIF-related company, so the Saudi’s have not been that aggressive.” 

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