In the summer of 2020, Mike Ashley announced that Newcastle United’s main shirt sponsor, a well-known Asian gambling company, would continue to be seen on the front of the Magpie’s jersey. This extends the partnership that started in 2017 and hasn’t looked as if it will end anytime soon.
Supporters are often on the fence regarding club sponsorship deals because they want a balance between money and doing what’s best for the team. However, there’s no reason for Newcastle’s loyal following to fret about the future from a financial point of view. If anything, fans should be optimistic about the relationship between the two industries, and here’s why.
It Opens up New Deals
Sponsors come and go – it’s a feature of the sporting world. But this doesn’t mean that developing a relationship with the industry is wrong. When it’s the casino sector, it’s a savvy move as it’s one of the only markets in the world that is flourishing, and it has been since the turn of the decade.
For example, the gross gambling yield in the UK for casino gambling was roughly £8.4 billion in 2011. Revenues this high are impressive, yet they are made more so by the fact that rose to £14.4 billion by 2018. As a result, different platforms and providers are entering the market to great effect, such as Jackpot Mobile Casino.
The new mobile casino UK industry highlights how highly competitive this area is with offers up to £1500 in welcome bonuses and over 1800 different casino games at some of the different options, so there are plenty of alternatives for Newcastle should they decide to switch sponsors. The sector is in good health, and that’s healthy for the club.
And Attracts Other Sponsors
The deals that have happened off the back of the contract renewal with the team’s main backer are incredibly important to the club due to the resources the contracts provide. Even without the bulk of the money from the betting industry, there’s plenty of investment coming Steve Bruce’s way from the likes of Puma.
The deal with technical partner Puma is believed to be around £10 million per year which is up from the last agreement with the German brand that was £6.5 million a season. It’s no coincidence the Magpies secured the extension with the sportswear giant around the same time the Chinese betting firm renewed their commitment.
‘Long term’ Fun88 sponsor extension confirmed this morning. Puma deal also been extended. Hear new home kit could be unveiled on Sunday v Liverpool.
— Mark Douglas (@MsiDouglas) July 20, 2020
StormGain, a trader and investor of cryptocurrency, has also announced it will appear as the English side’s shirt sleeve sponsor for the foreseeable future. If these figures aren’t anything to get excited about, nothing is.
The Manager Should Be Able to Invest
Newcastle United are struggling and relegation appears like a realistic possibility if the squad doesn’t improve its performances very quickly. Many of the problems are down to a lack of investment, with Callum Wilson and Allan Saint-Maximin the only signings to truly excite supporters in the past couple of seasons.
Unfortunately, Wilson’s injured and on the road to recovery, so the team is without its main talisman. There’s nothing they can do about it now as the transfer window has passed. However, if Bruce’s men are relegated, they will need to bounce back from the Championship straight away. To do that, the money available to the manager will be vital because England’s second division is one of the most competitive in the world, and a lot of the top players are bound to leave.
Newcastle’s long-term partnership with the casino industry should provide the investment the club requires thanks to all the reasons above, although it is also dependent on Ashley as well.