The exact sum paid by Sports Direct for its advertising at Newcastle United has been revealed in the sportswear firm’s latest set of accounts.
Mike Ashley’s firm will pay £2million a year for the billboards in the coming season – which is an increase of £1million on the fee they have paid in previous Premier League seasons.
It is the first time the amount has been confirmed and is included in the firm’s accounts which were released at 5pm on Friday – having been subject to several delays.
In a section in the accounts written by Ashley, the firm’s relationship with Newcastle is described: “In the current and prior year we have in the ordinary course of business been charged £1million per season for advertising rights whilst Newcastle United are in the Premier League, this is covered in the related party note in the financial statements.
“For the football season beginning in August 2019 the Sports Direct Group will be charged £2million for the advertising rights. Sports Direct still considers this to be value for its shareholders.”
. At the fans forum in 2018, the club defended their relationship with the firm: “Sports Direct is only allocated what the club doesn’t sell and that arrangement can be terminated immediately by the club if another company is willing to pay more on a fair commercial basis.”
But now we have, for the first time, a figure placed on the relationship.
