Newcastle United see Tottenham chief Daniel Levy's 'critical' PSR solution amid 20% TV deal drop

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Newcastle United are among a host of clubs bidding to 'maximise revenue generations' at their stadiums.

Brad Miller, the club's chief operating officer, said that a transformed St James' Park would bring in 'significantly more money' while a new ground 'not too far away' has the potential to earn twice as much with a lot more seats to boot. In the latest meeting with the fan advisory board, Miller confirmed planners, architects and project managers were 'working away' on the two options 'previously discussed' as Newcastle look to reach a decision early this year.

Miller has repeatedly highlighted how the chosen scheme must deliver strong revenue growth as well as a 'fantastic' experience for supporters. Boosting match day revenue remains the one big lever that Newcastle actually have in their own hands to significantly boost income streams at a time when sponsorship deals are increasingly competitive and TV contracts are centrally negotiated.

Although international TV rights have gone up, Morningstar DBRS, who are one of the world's largest credit ratings agencies, have noted how the Premier League's domestic rights were renewed with 'only a marginal increase', which is approximately 20% below the previous cycle on a per-broadcasted-match basis, as clubs look at other ways to boost revenues in a PSR world.

"European clubs are focusing on stadium upgrades and redevelopment, which should allow them to increase matchday and commercial revenues," an excerpt from Morningstar DBRS' global sports finance outlook report read. "Recently built/renovated stadiums of Olympique Lyonnais, Tottenham Hotspur, and Real Madrid are having a profound impact on the teams’ financial results.

"Many other clubs, including Barcelona, Everton, Manchester City and Liverpool, are in the midst of similar projects. We expect many more clubs to attempt to replicate this success over the coming years in order to maximise revenue generations at their stadiums."

Newcastle chiefs are, of course, fresh from visiting the Tottenham Hotspur Stadium as the Magpies look to bridge a huge gap on Spurs off the field. For context, Newcastle made less than a third (£37.9m) of what Spurs did (£117.6m) in match day income when the club qualified for the Champions League a couple of seasons ago.

It is worth stressing that Spurs' most affordable season ticket is an eye-watering £856 but, in addition to match day receipts, the Londoners have also turned their stadium into a multi-use venue to help further boost revenue streams. Beyoncé's five-night run in 2023 was the highest-grossing concert ever staged by a female artist at the time; the ground is the official home of the NFL in the UK and plays host to the world's first F1 branded electric karting experience; and a 180-room hotel is set to be built on site to support Spurs' conference and events business.

Chairman Daniel Levy said the club's record turnover, of £549.6m, was 'driven by increased stadium revenues from both football and non-football events and additional revenue streams'. "An increased capacity stadium was critical to meeting demand from fans unable to get access...and driving greater match day and non-match day revenues to reinvest in the football side," he previously told the Financial Times.

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