Newcastle United are earning their stripes – and a transfer windfall
Newcastle United's new kit deal with adidas will change the game at the club – and also take the brand around the world.
It’s almost time.
After months of speculation and weeks of leaks, Newcastle United and adidas will finally kick off their new deal by launching the club’s new home shirt today.
Demand for the new kit is expected to be very strong.
The club has opened a temporary club store next to St James’ Park while the premises in the Gallowgate End, previously run by former kit supplier Castore, are refurbished.
United’s statement, tellingly, talked up the importance of “rebuilding” an in-house retail operation following years of outsourcing.
The store has been built next to new St. James' STACK, backed by sponsors Sela, which is taking shape on Strawberry Place ahead of next season.
United have since confirmed the partnership with sportswear retailer JD which had led to legal action from Sports Direct, founded by former Newcastle owner Mike Ashley.
Ashley’s firm, which once ran the club’s retail arm, had branded the move “anti-competitive”, though this was strongly disputed by the club. Thomas de la Mare, United’s KC, pointed out that there would be “three independent competing retailers” (the club, adidas and JD) selling the kits.
The Court of Appeal dismissed Sports Direct’s request for an interim injunction, and the firm, once synonymous with the club due to Ashley’s ownership, will not stock next season’s shirts.
It’s a canny commercial move from a club, which has also launched its own leisurewear range, seeking to maximise its revenues.
The club, which was hollowed out during Ashley’s controversial time as owner, has steadily rebuilt its commercial operation since the takeover by a consortium led by Amanda Staveley in late 2021, and more deals will follow.
Commercial revenues, which flatlined for years under Ashley, are now growing rapidly, and a training kit sponsor is a strong possibility.
Iconic shirts
United and adidas, of course, go back a long way.
And the team, it’s hoped, will be able to go a lot further on the pitch with their backing, as the deal will be worth tens of millions a season to the club, which ended its less lucrative partnership with Castore early.
Adidas produced a series of iconic shirts in the 1990s and 2000s, notably during Kevin Keegan’s first spell as manager. Those designs set the bar high for the coming releases, and the manufacturer has not surprisingly taken inspiration from the those eras when designing the club’s new kits.
The classic away shirt from 1995/96 presented adidas with an open goal, and it was no surprise to see a hooped maroon and blue design among the leaks.
And the bigger picture is the significant uplift in commercial income from the deal that will help the club invest in players while working within domestic and European financial fair play regulations.
Speaking to the Northern Echo last month, chief commercial officer Peter Silverstone said: “Revenue, in general, is vitally important given the European and Premier League rules. The more we have, the more we can spend on the pitch, which is what every football club wants to do.”
Silverstone, incidentally, was at Arsenal when the club reissued the classic “bruised banana” adidas kit.
Adidas have put United, which finished seventh last season and missed out on European football, in its top bracket, and the firm is set to host the team at its headquarters in Herzogenaurach, Germany, next month.
Newcastle, a club with global ambitions, needed to partner with a global brand.
Football shirts are very much a global commodity, and Premier League clubs are pushing sales around the world.
United are playing catch-up with the likes of Premier League champions Manchester City, who topped this year’s Deloitte Football Money League. The club has opened a store New York City, the home of City Football Group-owned Major League Soccer side.
Newcastle shirts should soon be more readily available around the world as the club, 80%-owned by Saudi Arabia’s Public Investment Fund, attempts to build its global brand.
Kit change
That all said, there’s a lot to like about Castore, a British start-up set up by two brothers from Liverpool which has come from nowhere to challenge established manufacturers.
It has expanded very, very quickly, and landed some big teams and clubs. Newcastle fans, however, were quick to highlight issues with supply, quality and customer service on social media.
Personally, I liked the 2023/24 home kit, which was being sold off cheaply in an end-of-season sale before Castore’s deal with the club ended.
Aston Villa have also swapped Castore for adidas this summer.
With adidas, there probably won’t be too many United shirts left in the latter part of the campaign given the clamour for the new adidas merchandise on Tyneside.
Newcastle kits have always sold well, but the coming shirts could break all records.