Newcastle United in talks with ambitious 'powerhouse' over major deal – what we know

Newcastle United’s owners are set to agree the biggest deal in the club's history.

The club, which has been sponsored for the past six years by betting company FUN88, is close to agreeing a new shirt deal.

Saudi Arabian firm Sela are in talks over an agreement which would be worth upwards of £25million a season to the club, which is 80%-owned by Saudi Arabia’s Public Investment Fund (PIF).

Newcastle this week qualified for next season’s Champions League.

Is the FUN88 deal ending?

United’s owners, looking to drive up commercial revenues after years of stagnation, inherited a number of “difficult contracts” when they bought the club in a £305million deal in October 2021, according to co-owner Amanda Staveley.

Speaking at the Financial Times' Business of Football Summit earlier this season, Staveley said: "We inherited very difficult contracts, FUN88, or contracts that were six or seven years in length, which were very much one way.

“So we were limited by the way in which we could drive our commercial revenues.”

The FUN88 deal was extended in 2020 by then-managing director Lee Charnley, but the club’s ownership group negotiated an early end to the agreement.

Who are Sela?

Sela, based in Jeddah, is an events company which is heavily involved in football. The company works across a number of sectors.

A statement on the firm's website reads: “Beginning in 1997, we paved the way in the sports industry, and over the years our success has grown to encompass entertainment, culture, leisure and hospitality industries. Today we are proud players across recreational sectors.”

Sela, which reportedly has annual revenues of more than £1billion, is looking to expand globally. The firm aims to become "the most admired powerhouse that creates iconic experiences".

The firm is listed on PIF’s website as a company in which it has invested.

Will the proposed deal get approval?

Premier League sponsorship deals must be of “fair market value”, and are scrutinised independently.

The rules are in place to stop clubs agreeing inflated deals with “associated parties” to get around Financial Fair Play regulations.

Sela’s proposed deal is understood to be in line with deals at comparable clubs.

The club will be able to unveil next season’s kits once the deal has been completed.

Newcastle’s 2023/24 shirts will again be made by Castore, who signed a long-term deal with the club before the takeover.