Global Courant
British media report that the deal is worth £25 million ($31.5 million) annually.
Newcastle have signed a multi-year shirt sponsorship deal with a Saudi events company amid new Premier League rules on owner-related commercial deals.
British media reported that event management company Sela’s sponsorship of Newcastle was announced on Friday worth £25 million ($31.5 million) per annum on a multi-year deal.
“The agreement between the two fast-growing organizations will see them unite at an exciting stage in their respective journeys, with Sela – the driving force behind a wide range of spectacular events, iconic destinations and attractions across the Middle East – taking the Newcastle front becomes United. shirt partner,” the club said in a statement on its website.
Sela is backed by the Saudi Public Investment Fund (PIF), the sovereign wealth fund, which also has an 80 percent stake in Newcastle.
Following the Saudi-led takeover of the Magpies in October 2021, a temporary ban on owner-related sponsorship deals was put in place.
That was lifted two months later, but such deals should be considered fair market value.
The rise of Abu Dhabi-owned Manchester City to the top flight of English football has been aided by sponsorship deals with a range of related parties in the Gulf.
City are facing 115 Premier League charges for alleged breach of financial rules between 2009 and 2018.
Owners of other Premier League clubs have expressed concern that Newcastle could circumvent financial fair play rules by using Saudi-backed sponsors.
‘Perfect front’
Newcastle CEO Darren Eales said the partnership followed “a very competitive commercial process”.
“We believe we have found the perfect front-of-shirt partner to support us in achieving our goals on and off the pitch,” he said.
Meanwhile, Senior Vice President at Sela Ibrahim Mohtaseb said the partnership with Newcastle was the Saudi-based company part of the “next chapter for the club”.
“It’s about supporting the men’s, women’s and academy teams. And it’s about bringing world-class experiences to life, which is at the heart of what we do as a company,” he said, according to the statement on Newcastle’s website.
Newcastle will return to the Champions League for the first time in 20 years next season after finishing fourth in the Premier League in their first full season under their new ownership group.
The latest PIF investment in football follows what was effectively the nationalization this week of four top Saudi clubs, including those of Cristiano Ronaldo and new recruit Karim Benzema.
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