PIF have emerged as a new sponsor at Newcastle United.
The Newcastle United owners are now advertising themselves, as the Magpies aim to increase their revenue through sponsorship deals.
The PIF logo was spotted inside St James’ Park on Wednesday night during Newcastle’s 3-0 win over Wolves, as Eddie Howe’s side made it nine wins in a row and strengthened their bid to qualify for the Champions League.
While PIF have owned Newcastle United since October 2021, this is the first time that they have been used as a sponsor. Affiliate companies such as Saudia have sponsored the Magpies, but not PIF – until now.
Whether PIF will pay for St James’ Park advertising
Their branding should be present again on Saturday when Newcastle United entertain Bournemouth at St James’ Park, but are PIF paying for the privilege of advertising themselves?
The answer is yes.
That is according to the Daily Mail, who report that PIF will be paying for the advertising space they utilise inside St James’ Park.
This is a boost for the Magpies, as the additional revenue will help towards their PSR calculations.
However, the arrangement with PIF will not be over the top, as any sponsorship deal must prove to be worth fair market value.
PIF doing what Mike Ashley did not at Newcastle United
This is a contrast to the previous ownership, which saw Mike Ashley initially splash Sports Direct branding all over St James’ Park free of charge.
He advertised his own brand inside the stadium, but Newcastle United did not benefit.
That really hurt the Magpies financially, as it meant they were giving away advertising space for free – space that another company would have paid for.
That did eventually change, with Ashley’s group initially paying £1million-a-year for the advertising. That then increased to £2million. While it was at least something, it was hardly a needle-moving amount that would help Newcastle United invest in their squad.
The Magpies stood still, while their rivals enhanced their revenue streams. The club fell behind, which is why the new owners are playing catch up.
The sum that Newcastle United receive PIF should help Eddie Howe, as PSR continues to hinder his ability to evolve his squad.
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