Newcastle Chairman Mike Ashley could be up against another fans’ revolt after entering talks with controversial short-term loans company Wonga over a new sponsorship deal.
Worth £5million, the deal is set to start at the beginning of next season.
The payday loans providers charge APR at 4,214 per cent, meaning fans borrowing £65 today for the current Newcastle home kit would have to pay back £91 in a month’s time. Unpaid loans result in penalty charges and visit from private bailiff companies.
Newcastle trail behind Premier League rivals Liverpool and Tottenham in commercial revenues and Ashley is insistent that the new arrangement with Wonga is integral to the “long-term stability” of the club, according to Mirror Football.
Local MP Ian Lavery has voiced Magpies fans’ concerns; threatening to cut off all ties with his beloved club should the deal go through.
“If Wonga get this sponsorship through I will not set foot in St James’ Park until it is off the shirts. To have those players running around on that turf endorsing Wonga is an absolute outrage,” he said.
Newcastle City Council leader Nick Forbes also expressed a similar opinion, “I am appalled NUFC are in talks with a legal loan shark company. This is another example of the club’s profit at any price culture, which is destroying the image of the club and the city.”
The Councillor has now written his complaints to Mike Ashley in hope of stopping the deal.
