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thenry · 07-10-2012, 16:38

Quote:

Originally Posted by adzii_nufc

Quote:

Wonga, the payday lender, is in detailed talks to become the new sponsor of the Premier League football club, Newcastle United.

The consumer finance company, which has faced criticism for its high interest rates, is poised to replace Virgin Money from the start of the 2013/14 season.

The Sunday Telegraph understands Wonga will sponsor both the shirts and the club's stadium in a deal believed to be worth £8m a year.

Although Virgin Money, whose contract was terminated last week, is only the shirt sponsor, it is known the club's owner, Mike Ashley, has been looking to sign a joint shirt and stadium sponsor.

This weekend the deal had not yet been finalised, but it is understood that it should be signed within a fortnight.
It is expected the deal will begin from the start of the 2013 season, and last for an initial three years.

The stadium, named the Sports Direct Arena after Mr Ashley's sportswear retailer, will be renamed Wonga.

It is not the first time the lender has been involved in football. Wonga is shirt sponsor for Championship side Blackpool, in a deal which currently runs until the end of the 2012/2013 season*.

Earlier this year the company's deal with the Football League, in which it advertised on club websites, ended just before fans were to vote on a call for the adverts to be removed from the sites amid concerns about the level of interest charged on its loans.

News of the impending Newcastle sponsorship comes as Wonga filed detailed accounts for the year ended December 2011 at Companies House.

The numbers – providing a greater insight than the headline figures released last month – show that the company's cash balances were just shy of £135m at the end of December 2011. The overall cash position rose by £41m in the year, despite also paying off debts of £9.5m, meaning it is now debt-free.

A Wonga spokesman did not comment.

Is he serious? £8m a year? Virgin are paying £5 million, someone find me the logic in this when Virgin are by far a better brand to be associated with especially given the criticism Wonga have been getting. The Wonga stadium. This is a geordie saying plaster Sports Direct wherever you want, Just not Wonga. Hopefully a backlash will crumble this deal.

Talk of the town tonight was completely different though, Newcastle seemed to be hyped with talk of Newcastle United being bought outright in the next few weeks, rumored to be a telecommunications company.

Thats poor. Do you know how long this purposed deal/contract will last Adz?