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Newcastle's £60m sponsorship deal with South African company

Newcastle United have struck a three-year front-of-shirt sponsorship deal with KNOX Hydration worth around £60million ($80.6m).   The South African sports drinks company are already paying £6m a season for three years from July 1 to rename the training ground ‘The Knox’, and have now committed to succeeding Sela as the main kit partner.

Unlike Sela, which is owned by Saudi Arabia’s Public Investment Fund (PIF), Newcastle’s majority stakeholders, KNOX is not affiliated with the sovereign wealth fund.

For 2026-27, KNOX will pay up to £10m, given Newcastle’s new — and controversial — home kit went on sale last week without a sponsor. But for the following two seasons, that will increase to up to £25m annually, depending on bonuses being met, with the £6m training-ground naming rights fee on top in each of those three years.

Newcastle will also work with KNOX to launch a unique club-linked drinks brand, which they hope will bring in additional revenue to aid their standing with regards to the Premier League’s new squad-cost rules (SCR).

As an overall package, Newcastle insists those combined deals represent a financial uptick on the previous Sela agreement, which was worth around £22.5m annually, at least in book terms. If Newcastle do achieve £78m as a whole by triggering all the bonuses from KNOX, that works out at £26m a year when it is amortised over the contract length.

Newcastle view the deal as a real success in the current financial climate, with the front-of-shirt market having been depressed by changes to regulations around promoting gambling companies.

Several Premier League clubs are still searching for new headline sponsors and Newcastle insiders, having benchmarked the deal, believe the value of the KNOX partnership belies the downturn in the market, especially given it was negotiated so late that the cut-off point for the brand to be on the new home shirt had long passed.

David Hopkinson, Newcastle’s CEO, is continuing to try and expand and diversify the club’s list of partnerships. Discussions are ongoing for a first-ever front-of-training kit sponsor — KNOX will feature on the sleeve of the training jersey — and further bespoke deals are being actively worked on.

KNOX is keen to expand its appeal globally, so sponsoring a Premier League club offers the company an ideal platform to increase its visibility. The company is launching in the UK this summer.

In a footballing landscape governed by financial regulations at Premier League and UEFA levels, Newcastle must pump-prime their revenue to have any hope of fulfilling Hopkinson’s stated ambition of making them “the top clubs in the world” by 2030.

PSR and SCR rules

While the Premier League’s profitability and sustainability rules (PSR) — which have limited Newcastle’s ability to invest on the field post-takeover — are being replaced by the squad-cost ratio (SCR) regulations from 2026-27, those will still pin annual revenue to expenditure. Newcastle have also controversially sold St James’ Park to another company owned by their majority shareholders, which aided their PSR position, but means the club no longer officially owns its own stadium.

Although Newcastle’s figures will have grown again across the current season, 2024-25 is the most recent year when financial results are publicly available for Premier League clubs. Across that campaign, Newcastle’s turnover (£335.3m), matchday income (£51.6m) and commercial revenue (£120.2m) were dwarfed by the average of English football’s ‘Big Six’ clubs (at £638.8m, £119m and £288.2m respectively).

Newcastle’s commercial revenue has gone up fivefold post-takeover from £21m, yet there is still a huge gap to the established elite — Liverpool’s accounts, published in February, showed their commercial revenue at £323m and was their biggest income stream.

Crucially, this fresh tie-up is not with a Saudi company. In 2024-25, 34.4 per cent of Newcastle’s commercial income (£34.4m) came from PIF-related companies — deals which the Premier League defines as “associated-party transactions” (APTs).

Although the Premier League has theoretically relaxed those restrictions following Manchester City’s legal challenges, UEFA rules over APTs remain more prohibitive. While Newcastle will continue to strike commercial deals with PIF-related companies, Hopkinson is also keen to diversify beyond those.

The theory goes that this “dimensionalisation” of sponsorships, as it has been termed by some internally, should provide Newcastle with a clearer pathway to top-tier revenues. Rather than merely strike so-called ‘easy-to-achieve’ deals with Saudi partners, Newcastle’s commercial team have been directed to actively pursue as many new non-PIF sponsors as possible, too.

For Newcastle to secure an additional £25m per annum in revenue can only represent good news for Eddie Howe, the first-team coach, and his capacity to bring in summer signings.

 

 

 

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