Newcastle is seeking a £165 million payday in light of the audacious exit-boAmanda Staveley, the departing director, is pushing for Newcastle United to greatly increase their revenue from a single source.
Amanda Staveley, the departing director, is pushing for Newcastle United to greatly increase their revenue from a single source.
After the Saudi Public Investment Fund acquired Newcastle in 2021, Staveley served as its public face and, together with her husband Mehrdad Ghodoussi, joined the board.
Since then, she has been in charge of growing Newcastle’s business division, which under former owner Mike Ashley had become stagnant.
The present leadership, whose spending options are restricted due to the PSR system, has made increasing revenue through better sponsorship contracts and other sources a top focus.
The Tynesiders’ primary source of revenue is still television money; in 2022–2023 the team brought in £165 million from broadcasters.
Because they are in the Champions League, that number will have increased dramatically by the time they produce their 2023–24 accounts.
Even though Ghodoussi and Staveley will soon be leaving St. James’ Park, their successors will be equally driven to increase that number even further.
And they may be able to do just that according to the most recent news out of France.
The DTC strategy could increase Newcastle’s broadcast revenue.
Many teams believe that a Premier League streaming service akin to Netflix is the way to go, as domestic TV rights are beginning to wane.
Staveley herself believes that a “direct to consumer model” is inevitable and the wisest course of action for rights holders, as reported by Chronicle Live earlier this summer.
The DTC system has not yet been implemented by any of the traditional “Big Five” leagues in Europe, but that may soon change.
considering the recent occurrences.
Because of broadcasters’ resistance to their £850 million valuation, Ligue 1 has been having trouble securing a TV agreement for its five-year rights cycle, which starts next season.
Ligue 1 is now developing backup measures, such as a direct-to-consumer streaming service, as reported by SportsPro Media.
It would not be surprising if the Premier League adopted the same strategy if it were compelled to go the path suggested by Staveley and others and it turned out to be successful.
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How Newcastle’s transfer budget can be increased by TV money
Newcastle can use every penny they make under the present Profit and Sustainability Rules scheme to fund their hiring budget.
The club barely escaped a breach for the three-year PSR period up until 2023–2024, but in order to guarantee continuous compliance, they will still need to make changes in 2024–2025.
While that probably means player sales in the near run, more TV revenue will support the club’s PSR in the long run.
More than half of the club’s projected £300 million in revenue for 2023–2024 is anticipated to come from television streams.
