Newcastle United’s Chief Commercial Officer Peter Silverstone reveals the hidden reason why Newcastle United have no training kit and ground sponsorship deals

Peter Silverstone, Newcastle United’s Chief Commercial Officer, addresses the concerns of fans regarding the absence of a training ground sponsor and training uniform. He emphasizes the significance of maximizing the Magpies’ value in the present and not underestimating their future worth.
Commercial transactions are not spontaneously generated.

Newcastle United has yet to secure a training kit, training facility, or St. James’ Park sponsor. You have heard it, I have heard it, and you may have even experienced it.

Commercial is the monarch in a world of PSR woe – just ask Elliot Anderson his thoughts on football’s financial roadmap. A critical component of the strategy of any Premier League football club is the necessity to increase revenues in any way conceivable.

Newcastle has, thus far, increased their revenues and bolstered Eddie Howe’s spending power through football merit, such as cup runs and Champions League participation, as well as savvy market operations, such as the aforementioned Anderson deal and the trade-in, trade-out of ‘commodity’ Yankuba Minteh. Additionally, Newcastle has signed a series of the most lucrative deals in the history of the football club, including ones with Adidas, Noon, and Sela.

However, when is it sufficient? It appears that Newcastle’s requirement for additional funds, which is essential for the advancement of its football endeavor, is only increasing with each passing minute, month, or transfer window. Never, it seems, in the bottomless pit of football finance.

Newcastle United’s Chief Commercial Officer, Peter Silverstone, engaged in a conversation with The Shields Gazette regarding all matters commercial with the Magpies.

He was unwavering in his commitment to the mission at hand—to continue to expand—but he was optimistic about the future and the progress that had been made thus far.

To the backdrop of the flashy, new commercial venture, St James’ STACK, Silverstone stated, “Everyone thinks that some clubs fall from the trees because they have a training ground sponsor.”

“You must select the appropriate partner, establish the appropriate values, and ensure that the two are compatible, which necessitates a significant amount of time.” However, it is evident that my responsibilities and those of my team are to optimize the potential in all sectors, including retail, media, membership, retail, and partnerships.

Newcastle is believed to be on the brink of announcing additional commercial revenue-boosting agreements, some of which are both new and ancient.

Silverstone responded, “We are considering all possibilities,” when pressed about the proximity. I am cognizant of the varying opinions of individuals regarding the appropriateness of selling certain items. I am also aware of the projects we are currently working on and the results we are striving to achieve.

Optimizing Newcastle’s “future value”
Silverstone, who has a successful career, including at Premier League rivals Arsenal, also emphasized the significance of ensuring that deals are signed with the future and the present in mind. He also emphasized that Newcastle must not undervalue itself now and sacrifice their inevitable rising stock for immediacy.

“I have been employed in the fields of sports marketing, sponsorship, and sports for more than two decades.” For a decade, I have been employed by the Premier League. No sponsorship agreement is effortless; none. It does not matter which club you are in the hierarchy of the Premier League or European football.

Sponsorship agreements necessitate effort. The subject of this discussion is the collaboration and integration of two enterprises and brands, which is not a natural occurrence.

“Our obligation is to ensure that Newcastle United’s current and future value are optimized.”

“We are not interested in executing transactions at current market value that will be undervalued in one to two years when we are closer to our objectives.”

“It is a delicate equilibrium; however, we must identify the appropriate partners at the appropriate price, and other clubs are making an effort to achieve the same.”

“The marketplace is exceedingly competitive.” Stack is one of our most distinctive assets. We have a beer partner who is currently our beer partner for both the stadium and this venue.

“We have a few additional collaborators with whom we will be integrating the venue, stadium, and venue. So, Stack is providing sponsorship inventory. SELA is a part of this, and SELA is a company that creates events and destinations, spectacular events and destinations in Saudi Arabia, and has now expanded globally to LA. They will be a part of this experience as well, which will offer more value to sponsors and partners and differentiate us from the 19 other clubs in the Premier League who are all pursuing the same ambitions and dreams and the same sponsors.

‘Interest’ in training site deals and training kit
Silverstone acknowledges that there has been interest in pursuing these types of agreements at Newcastle; however, Adidas and other entities have been prioritized.

He responded, “Certainly, when asked if anyone had expressed an interest in training kit and training ground sponsorship.” It also pertains to the priorities that must be established. It is impossible to pursue all objectives simultaneously. Therefore, it is imperative to prioritize an extraordinary kit launch with Adidas, which is maximizing the opportunity. The inauguration of STACK is requiring the dedication of hundreds of individuals and a significant amount of time and effort to ensure that it is completed by the start of the season. Everything necessitates time. Our growth is genuine and consistent, and we are striving to optimize all of the opportunities you have identified, as well as others.

The necessity to persist in growth
Therefore, what is the club’s current location?

Revenues are undoubtedly increasing; in fact, they are surging to unprecedented heights. The revenues for 2022/23 increased to approximately £250m from a post-takeover base of approximately £180m in the first season. According to CEO Darren Eales, they are expected to surpass £300 million in 2023/24.

Although these figures are noteworthy, they are eclipsed by the ‘big seven’ of the Premier League.

In 2022, Tottenham Hotspur, a club of comparable size, stature, and ambitions, reported revenues of £549m, a significant increase from £444m.

Silverstone stated, “We are making incredible progress, we have a long runway, and we are continuing to grow. This is another indication of progress.”

“Our temporary retail store is currently experiencing exceptional business. However, it serves as a precursor to the new store, which will be another best-in-class investment, resulting in increased commercial revenues.”

“We continue to grow, grow both from a resource perspective but ultimately what’s most important from a revenue perspective, because every penny we generate is spent on the pitch, both men’s and women’s teams and ensuring that we can compete at the top of all our respective divisions.”

Newcastle United is currently engaged in a process of catch-up
Newcastle fans are accustomed to the phrase “playing catch up,” but they are at least on the correct track. This is in stark contrast to the nearly 15 years of stagnation under Mike Ashley, a cost that is still being felt today.

Silverstone stated, “It is not going to occur overnight (to reach Spurs-like revenue levels).”

“We are certainly playing catch-up.” I regret that we were not able to engage in that activity while in Japan, as I witnessed the intensity and passion of the fan base. The fans who wore the Shola Ameobi shirt 26 years ago, if we had been more engaged with them over the past 26 years, we would not have had to catch up as quickly and the fan base would have been marginally larger. However, our current responsibility is to expand the fan base internationally, and we are progressing.

“The timeline for catching up is… on the field.” I believe that we are performing exceptionally well on the pitch. I believe that Eddie and the football team are performing their duties at a breakneck pace, which is why it takes time to keep up with the pace on the field. We are making an effort to catch up, but the proposal does not have a time limit.