Reports suggests Newcastle United could bag £100m payday for stadium naming rights on one condition
Newcastle United are still stalling on making a decision regarding what to do when it comes to a new stadium.
While it feels like the decision will lean more towards building a new multi-purpose stadium rather than trying to develop St James' Park, we're still no clearer on what the actual decision will be.
We thought we were close to a decision but uncertainty in the boardroom pushed back the decision and David Hopkinson has asked for patience.
A new report has given fans something else to consider with regards as to whether it would be better to move to a new stadium or stay at St James' Park and try to expand the capacity.
Newcastle could net almost £100 million in a stadium naming rights deal if they left St James' Park
According to The Sponsor (via The Chronicle), Newcastle could sell of naming rights to St James' Park for around £5.5 million a year for a 10 year deal, netting them around £55 million.
However, their report suggests that were Newcastle to move to a new state-of-the-art stadium, they could practically double that amount, bringing in £9.9 million a year for a typical ten year deal.
With the Magpies struggling under the boot of PSR and whatever financial restrictions the decision makers dream up in the future, that's an opportunity they can ill afford to waste.
Newcastle have been poor at striking up sponsorship deals
Newcastle are already leaving money on the table by not signing the club up to sponsorship deals for the training ground and training kit, and indeed naming rights for St James' Park.
We understand the reluctance to enter into agreements for the training ground and stadium, with plans to potentially move both sites in the next few years, but we see no reason why a training kit deal hasn't been struck yet.
The club's thinking has always been that they don't want to enter into a low-value deal that would potentially dilute its worth for future deals, but surely some money is better than no money.
