Liverpool set to swamp Newcastle’s behind the scenes deal with £60m partnership as PIF fall further behind

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Newcastle United are trying their best to catch up with the likes of Liverpool when it comes to revenue.

Toon officials know they need to bring more money into the club to compete with the Premier League’s elite, as profit and sustainability continues to be an issue for Newcastle United.

Selling players will help, as will new sponsorship deals. And Newcastle secured a big one over the summer, as they reunited with Adidas.

Newcastle fans have loved the new Adidas kits, after they replaced Castore ahead of the 2024/25 season.

It is reported that Newcastle earn £30million-a-year from the Adidas deal, which is £25million more than they were getting from Castore.

That is a huge boost to Newcastle’s revenue, as they aim to close the gap on the ‘big six’.

Liverpool set to join Newcastle with Adidas partnership

But while Newcastle are trying to get their revenue in line with the clubs they want to compete with, those clubs are negotiating even bigger deals.

According to the Telegraph, Liverpool are set to make Adidas their kit provider for next season, with the German brand replacing Nike.

The Telegraph add that Liverpool’s partnership with Adidas will be worth more than £60million-a-season, which is double what Newcastle are getting.

Financial expert compares Newcastle and Liverpool’s Adidas deals

Following news of Liverpool’s looming £60million deal with Adidas, Geordie Boot Boys have spoken to TBR Football‘s financial expert Adam Williams.

Williams explained why Liverpool have been able to secure a more lucrative partnership than Newcastle.

“The headline figures suggest that Liverpool will earn double what Newcastle will from Adidas, but the reality is that the disparity is probably even larger,” he said.

“I personally think Newcastle would have struggled to get a £30-40million deal past the Premier League’s Fair Market Value assessment if that is the base rate given that their last deal was worth around a sixth of that.

“That would be roughly equivalent to what Tottenham earn from Nike, and they sell far more units than Newcastle do.

“The fact of the matter is that is probably blue-sky thinking. Basically, that will be the upper threshold of what they could earn from the deal with bonuses and other clauses taken into account.

“The true figure will be more modest. I should add that I’m not making a qualitative judgement about Newcastle here. I just think the data and facts we have mean that a £30-40million deal final take-home from the Adidas deal is unlikely.

“Conversely, I believe Liverpool’s kit deal will actually be worth quite a bit more than the £60million headline figures suggest. They tend to underestimate. The £60million will be the baseline figure, without factoring in commissions, tie-ins etc.

“Why the polarity between their deal and Liverpool’s? It’s pretty simple. Liverpool sell more shirts than any other Premier League club – and we know that from official statistics from UEFA.

“Newcastle are making progress with extending their brand into more global markets. The kit launch in Japan over the summer showed that.

“But they just don’t have the global appeal that Liverpool do at this stage. You don’t get that overnight. It has been cultivated throughout their history.

“What’s more, the likes of Adidas will appraise commercial partners based on brand association as well as the raw number of units they can sell. Even if they don’t make a profit on Liverpool after distribution and production costs, the intangible benefits of the deal make it worth their investment several times over.”

Newcastle’s rivals making stadium plans too

Another way that Newcastle can increase their revenue to help with PSR is expanding St James’ Park.

That is something that the club are looking at, with PIF open to the idea of building a new stadium for Newcastle.

Another option is to make the club’s current ground bigger, but it has been reported that expanding St James’ Park could cost Newcastle £1billion.

While PIF deliberate what to do, Newcastle’s Premier League rivals are making plans of their own.

Manchester United are aiming to redevelop Old Trafford, while Arsenal want to increase the capacity of the Emirates as they aim to boost their matchday revenue.

PIF are trying to close the gap and help Newcastle United. However, they continue to fall behind as the ‘big six’ set about bringing in even more money.