NUFC To Promote Pay Day Loans with Wonga Deal?

Newcastle United FC are reportedly in advanced talks with Wonga to sponsor the kit and stadium in an £8million deal. The company which itself, is debt free according to records filed with Companies House, offers pay day loans to solve short term cash problems with an APR of 4214%. (Figures from wonga official website)

Fans who were displeased with the stadium being renamed "The Sports Direct Arena" will be appalled by the thought of it soon becoming the "Wonga Stadium".

The company already had a foot in the door with football sponsorship, when up until earlier this year they had a deal to advertise on Football League websites in addition to its current sponsorship deals with Blackpool and Scottish side Hearts.

Their sponsorship ended with League websites ahead of a fans due to vote on a motion calling for the adverts for leading companies to be removed from League club sites. The Football Supporters Federation were expected to hear the motion which requested the Wonga contract was not renewed until tighter lending regulations were introduced.

In May of this year Wonga were criticised by the Office of Fair Trading for using aggressive debt collecting methods.

A campaign appropriately entitled "Red Card For Wonga" was being lead by Labour MP Stella Creasey who said;

"This campaign is calling on football to show leadership on this issue and reject these adverts from their websites and grounds until this industry is better regulated."

The minutes from the FSF AGM in July 2012 note recommendations that football clubs should be encouraged to opt out of having Wonga.com adverts on their websites.

"Fans’ Parliament 2012 calls upon the football authorities across England and Wales to prohibit the promotion through football of “payday” and other short-term loan companies until such time as there is tighter regulation of this industry and a cap on interest rates has been applied”.

Reports from the AGM refer to the fact that all bar one present supported the "Red Card for Wonga" Campaign and the motion was presented and passed.

So, if true, why would Mike Ashley deems this a suitable company to sponsor the shirts and stadium of Newcastle United? Because sponsorship works both ways.