- 59 Comments
The year is 2030.
Newcastle United are “perennial contenders” competing for the biggest prize money in the game and “in the debate about being the best club in the world.”
David Hopkinson, who recently took over as Newcastle’s new chief executive, has a bold five-year vision.
The Canadian remarked in a nutshell, “That kind of progress doesn’t take as long as you might think.”
“First of all, we need to be completely congruent about what we want to do.”
We must have the guts to reject those who doubt us and even those who make fun of us. since there will be some.
Given that Newcastle are currently in 12th place in the Premier League, Hopkinson’s scepticism is not in question, but Hopkinson’s perspective is that he is “constructing an organization whose sole purpose is to win” is in question.
Prior to joining Maple Leaf Sports and Entertainment, Hopkinson oversaw the commercial operations of the Toronto Maple Leafs and Toronto Raptors.
The Raptors lost in the woods in 2014, according to Hopkinson, before coming out with the NBA championship for the first time just five years later.
Although there may not be the same level of play-offs as there are in basketball, Hopkinson believes Newcastle are at the center of the “most transformational opportunity” in sport.
Even though this is obviously a very different ball game, the 54-year-old has never shied away from a bold time-frame.
bridging a significant revenue gap
Even if Hopkinson describes head coach Eddie Howe as a “special “manager,” it is obvious that a dramatic change won’t occur overnight.
Since he first came in contact with the club’s owners in September, Hopkinson has completed an in-depth review and submitted a transformation plan with carefully-guarded milestones for each of the upcoming seasons. He is the first to acknowledge that there is “a lot of work to do.”
Newcastle’s revenues are projected to increase to more than $ 400 million, which is a significant increase over the £140 million mark posted in 2021.
However, they still have a huge gap to close, like Manchester City, which made £715 million in revenue a few seasons ago.
In accordance with the financial regulations in 2023-2024, this allowed Manchester City to spend nearly $ 200 million on wages, and historically, the teams with the highest salary packages have historically had the tendency to earn the most points in the league.
Therefore, Hopkinson’s main concern will be finding a way to boost revenue, as he previously held the positions of president of Madison Square Garden Sports and, perhaps most pertinently, as Real Madrid’s head of global partnerships.
As the club’s chief transformation officer, who worked alongside Hopkinson at Real Madrid, Michael Sutherland claimed that the executive “created a lot more structure and a more professional approach to the sponsorship process.”
You could say “It’s Real Madrid,” he said. Who wouldn’t want to sponsor the club, which is the simplest role in the world? “he said”. However, it causes a different issue.
If Real Madrid don’t have a good season and don’t win a championship, you’re basically selling the idea of belonging to the best club in the world, which has a significant impact on your value proposition to sponsors.
Manchester City “were able to get there earlier”
Newcastle has potential for growth.
Although there are gaps in important senior positions in Newcastle despite the fact that the number of employees has increased to more than 550 staff members in recent years.
The club is far behind its rivals in terms of both its digital and data components, both of which require significant improvement.
Hopkinson has also cited “less obvious opportunities” with international partners, including Saudi Arabia’s Public Investment Fund (PIF) and businesses connected to Newcastle’s majority owners.
Top flight executives once expressed a real concern that Newcastle might negotiate incredibly lucrative sponsorship deals with Saudi Arabian businesses through the PIF.
Five days after the takeover in 2021, a senior figure from another country even requested that a vote be held to implement a short-term ban on related-party transactions be made in order to contact the Premier League on behalf of his club and ten others.
The majority of top-flight clubs later approved the Associated Party Transaction (APT) rules to ensure that deals were fair market value.
As a result, this was always going to be a more gradual build, according to football finance expert Kieran Maguire.
Manchester City were able to enter the stadium earlier than associated party transactions, when there were no stringent requirements and hoops to be covered before a sponsorship contract could be signed, he claimed.
“We have to keep raising the bar.”
Of course, there are other ways to increase long-term revenue.
Last but not least, match day income.
However, regardless of whether the ground is renovated or a new one constructed, there is still uncertainty about the future of St James’ Park, and Hopkinson acknowledged that the club will remain there in its present form for “many years.”
He said, “We’re modeling a number of different scenarios.” However, it still requires years of planning, funding, construction, etc. if we had to decide tomorrow, which we weren’t going to do. Whatever we decide, that’s the case.
Evidently, there must be some significant decisions to be made regarding the overall infrastructure.
Work is being done, according to Nottingham Forest’s sporting director Ross Wilson, who followed Hopkinson through the door.
However, the club is aware of the restrictions on the Benton site and is also looking to make a significant investment to construct a brand-new, state-of-the-art training facility elsewhere.
It perfectly sums up the unfathomable task Newcastle will face across the board to eventually defeat the elite.
related subjects
- Premier League
- Newcastle United
- Football
