The news provoked an immediate response from R3, the insolvency industry trade body, politicians and trade unions. Many fans expressed distaste too.
However, the deal was sweetened with news from Wonga.com that the club’s ground, renamed the Sports Direct arena by its owner Mike Ashley, despite a storm of protest, will revert next week to its much cherished original name, St James’s Park.
R3 noted Wonga had chosen to target a region with the country’s highest personal insolvency rate, at 35.2 per 10,000 adults, more than double London’s. While Unite, the biggest trade union in the north east, urged Mr Ashley and the Newcastle board to “think again and kick Wonga into touch”.
Nick Forbes, leader of Labour-controlled Newcastle city council said he was “sickened and appalled” by the sponsorship deal. He wrote on Tuesday to Mr Ashley, urging that some sponsorship money be donated to fund additional debt advice locally.
Already, said Mr Forbes, more than £1m a year is spent in Newcastle “providing debt advice for people who are victims of companies like this”. He expressed concern at the deal’s impact on Newcastle’s image.
Derek Llambias, managing director of Newcastle United, praised Wonga, which has said it will invest in the club’s youth academy and its young enterprise scheme.
Wonga, which describes itself as a digital finance company, provides small, short-term loans online and via smartphones.
It says it has, to date, provided more than 6m loans “generating industry-leading satisfaction rates from customers”.
The club’s present shirt sponsor is Virgin Money which, on January 1, acquired Northern Rock, the previous incumbent.
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