Wonga may put an end to their £24million shirt sponsorship deal with Newcastle United, according to The Independent.
The payday loan company signed a five-year shirt sponsorship deal with Newcastle back in 2012 but, just two years in, they are hoping to pull the plug in an attempt to cut costs. Wonga recently announced a £40million-loss for the last financial year and admitted that there will be job cuts. Shortly after their statement, they also put an end to their sponsorship deals with Blackpool and Hearts.
Mike Ashley’s decision to work closely with Wonga was heavily criticised by almost everybody surrounding the club – from the Geordie faithful to members of Parliament. The MP for Newcastle central, Chi Onwurah, criticised Ashley’s actions and dubbed the company as ‘legal loan sharks’.
The then managing director Derek Llambias claimed the deal would help Newcastle compete for trophies but, instead, the Magpies are staring down the barrel of relegation. “We are building a club that can regularly compete for top honours at the highest level,” he claimed. “As everyone knows, a strong commercial programme is vital to this goal and I am delighted to welcome Wonga into the fold as our lead commercial partner.”
Since then, Newcastle’s hierarchy has undergone an overhaul and Lee Charnley has replaced Llambias as managing director. Despite overseeing a summer revamp that saw seven fresh faces arrive at the club’s Benton base, Charnley has faced criticism for electing to appoint John Carver as Alan Pardew’s successor, rather than recruiting an accomplished manager capable of keeping the Magpies in the Premier League.
