Newcastle United have confirmed that they will sell the naming rights to their stadium, and end 119 years of playing at St James’ Park.
The Tyneside club have had an impressive start to the 2011-12 season, and in order to kick on are looking for avenues to increase their profitability and revenue.
The decision to sell the naming rights to the highest bidder was revealed by managing director Derek Llambias, and is sure to aggravate a sentimental fanbase.
“Our aim for Newcastle United is to continue to deliver success for the fans and everyone associated with the club,” Llambias revealed in a statement.
“We must make this club financially self-sufficient in order to deliver that success. To grow sustainably and allow us to invest in our future, we will need to rely increasingly heavily on commercial income.
“These are very difficult economic times and the board have a responsibility to maximise all revenue streams for the benefit of the club. Stadium rebranding offers a lucrative way for clubs to secure significant additional income.
“When we initially launched our plans at the end of 2009, we invited sponsors to attach their brand to that of St. James’ Park. However it has become clear that in order to make the proposition as commercially attractive as possible, a potential sponsor must be given the opportunity to fully rebrand the stadium.
“Naming the stadium the Sports Direct Arena helps up to showcase the opportunity to interested parties. We are now actively seeking a long-term sponsor wishing to acquire full naming rights for the stadium.
“Our shirt sponsorship deal with Northern Rock will also expire at the end of this season, which presents would-be sponsors with the opportunity to acquire both the naming rights and shirt sponsorship deals,” he concluded.
The move follows the likes of Manchester City, Arsenal, Bolton and Wigan in selling the naming rights to their stadiums, and it is expected that the Magpies could net as much as £15 million a year through the venture.
By Gareth McKnight
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