Newcastle United’s resurgence in English football is delivering major economic benefits to the north-east region.
Around 300,000 people attended the club’s celebrations in the city following their recent League Cup victory over Liverpool at Wembley Stadium.
Local officials have estimated the event was worth around £6 million to the local economy, although that figure is believed to be a conservative estimate.
Stephen Patterson, the chief executive of the NE1 Ltd business improvement district company, said: “Early feedback from city centre businesses has been resoundingly positive, with some reporting record-breaking trade.
“Perhaps unsurprisingly, businesses closest to the parade route and the Town Moor and bars and hospitality businesses selling food on the go reported the strongest figures.”
The show of support for Newcastle highlighted why officials are so eager to push forward with plans to expand the capacity of the club’s stadium.
As highlighted by Total Sports and other sports media, Increasing the matchday capacity would not only generate additional revenue for the club but also positively impact local businesses in the area.
That point was hammered home by the figures being floated about Manchester United’s proposed regeneration of Old Trafford.
The club has estimated that the project could create 92,000 new jobs and generate an additional £7.3 billion annually to the national economy.
Adjusting those figures pro-rata for a smaller capacity stadium still paints an impressive picture for a club which is desperate to become a big hitter in the football world.
There has been talk of government support for Man United’s stadium redevelopment, but Newcastle could also muscle in on the action.
Culture Secretary Lisa Nandy, who spent three years as a student in Newcastle, has confirmed she wants the city to get its fair share of funding for regeneration projects.
Newcastle chief executive officer Darren Eales recognises the significance of Nandy’s backing for a club which boasts a huge fanbase across the north-east region.
“We know how important Newcastle is to the city and the region,” Eales said. “If we get it right, it is something that not only benefits the club but the wider region.
“We don’t want to rush and do something that in 20 years’ time, we think, if we had spent a bit more time, that would have had a bigger impact.
“That is the analysis we are going through at the moment to make sure we come out with the best possible way for everybody.”
Nandy’s recent suggestion that the government could support regeneration projects to accompany a new stadium could be a game-changer for the region.
She has already held talks with local officials and assured them that she will pull out all the stops to ensure that the city receives financial support from the government.
Nandy says the club can influence the level of backing it receives. “Obviously it will depend on the club and the amount of investment they can attract,” she said.
“But what we are working to do is make Britain a very attractive place for people to invest, through a series of measures including economic stability.
“This also included the Football Governance Bill which is currently in Parliament, which provides stability and certainty around ownership, financial flow in the game, putting fans back at the centre of the game, which we think will help attract good owners to come and invest more here in the UK.”
Given Nandy’s bullishness about the prospect of Newcastle receiving financial support from the government, the club must move quickly to capitalise.
The Magpies are an integral part of the city’s fabric, and their future growth would generate massive economic benefits for the region.