Maximising potential revenue sources

I was reading this article http://www.bbc.co.uk/news/business-15017076 about Spurs looking abroad to garner additional revenue sources abroad as they estimate the total amount of supporters outside the UK to be in the region of 179 million.

Considering that they estimate there are only 3 million Spurs fans in the UK itself; why have clubs been so slow to look at this marketplace and the additional funding it can bring in.

Manchester Utd of course are years ahead of the rest of the Premier League as they have consistently looked overseas to drive added revenues into their coffers and it’s brought enormous benefits to them on and off the field.

In recent years I’ve seen other teams travel to the Far East to bolster overseas support. These teams include Chelsea, Liverpool and almost a decade ago; Newcastle United.

Sir John Hall stated a while ago that Mike Ashley was going to use Newcastle United as a vehicle to promote and expand Sports Direct abroad and whilst that causes division amongst supporters because we can’t see the financial benefits this amalgamation brings the club it does show that Ashley is aware of the global appeal of the Premier League and Newcastle United in particular or else he wouldn’t have been so keen to spend £250 million on the club.

I see this ‘expansion vehicle’ as a two part deal:

1) It can increase the awareness of Sports Direct globally as a recognised brand.
2) To increase the awareness of the Sport Direct brand; Newcastle United have to be a team that generates interest abroad.

If NUFC can begin to become an attractive proposition for overseas broadcasters this would mean that the market places they service have a demand for all things NUFC.

Whilst the Sports Direct advertising in the stadium may influence the viewers to purchase goods from Mike Ashley, the performances of the team may also influence the viewers to purchase NUFC merchandise.

In this scenario; Mike benefits but so does the revenue generated by the club overseas.

If Spurs have an estimated 179 million followers abroad from a total TV audience estimated to be 3.9 billion then how many millions of NUFC followers are out there?

Even if it’s only half the amount of Spurs (who have attracted more interest in recent seasons due to European football) that still leaves roughly 90 million.

With correct marketing to find and interact with these followers and extract even the equivalent of 50p per year per follower would bring in additional revenue stream that could fundamentally alter how the club acts in the transfer market and even increase the wage cap to retain key players.

 

I think the key with getting revenue abroad is to be in Europe, when we start getting in and around those places we can think about doing what Spurs plan to.

 

The viewing figures mentioned are for EPL games only and not including CL, Europa matches.

At 3.9 billion followers you'd think this is a revenue stream that needs some attention devoted to it.

Even identifying the nations where Newcastle matches are highly watched and marketing those countries can lead to increased revenue if done correctly.

 

Definitely, but being in Europe I think would mean that we would be able to maximise the the revenue stream. At the moment I think we wouldn't be that big as we have just come back from relegation, maybe with the slightly older viewers who remember the old days.

 

I think the key is playing exciting football, getting into Europe can't hurt but do you think Birmingham will pick up many fans this year. All the foreign fans of United that I've met joined up during Keegans years with the club. It is the Premier League that people watch in Asia for example nowhere near the same interest even in the Champions League

 

Hatem is correct. If your not in Europe your not very marketable even in the premiership. But the options are there. you hit the nail on the head. Although we can complain about Ashleys plans for us regarding his business. His products are sold to a lot of customers and thus it will have an affect on our glabal brand.

Man Utd is the cash cow of football in terms of revenue streams and their success on the field contributes drirectly to the success off it (albeit they are in mega debt due to the glaziers) and Ashley is no muppet when it comes to making money.

He knows that progress within NUFC and the NUFC business valuation is mainly influenced by results on the pitch. The only way for this to grow is to develop.

We dont always see eye to eye with him when it comes to his footballing decisions but I am very trustworthy of his business decisions. It might be a red herring but we are playing better football, with younger players, who are not paid ridiculous wages.

It takes years to develop and we are already a good way down the road.

 

I'd be delighted if Sports Direct hit Europe! I was in Corunna last month and a Depor shirt would have cost me 90 Euros, Fat Mike would sort that out quickly. Much as the defacing of SJP is annoying, the reduced cost of footie shirts in the UK in the last 15-20 years has been fantastic.

 

For all of the above reasons; I still dont understand why NUFC or should I say Mike Ashley hasnt signed a Far East superstar.

Keisuke Honda for example would bring millions of ££ from Japan and the Far East in general in merchandising with his name on the back of a black n White shirt. Just bring him in. Then go over their for pre-season. Put NUFC on the Far East map.

It makes total business sense, not to mention he is a cracking player, to get him signed up. Their is no downfall.

Unfortunately Mike and other Premier League chairman dont have that kind of 'far out' thinking.

Other examples are the Korean striker Arsenal have just bought Park Chu Young. Park Ji Sung is another example seeing as he isnt getting game time at Old Trafford. Shinji Okaksaki is another example in the Bundesliga as well as others in that league http://thefootballproject.net/2011/08/11/okazaki-fires-die-roten-to-the-fore/

If I bought a Premier League football club I would have the far east as one of the markets to not just tap into, but swallow up with a big spoon.

 

Actually I think Pardew said that we could have got a very nice deal for going out to the far east for pre season but it would make more sporting sense to go out to the USA

 

I've done my bit, I have made Newcastle United recognizable in Russia by 4 people. They even emailed me saying they watched the Blackburn game on tv as all games are shown on terrestrial tv.