Controversial online money lender Wonga sealed a four-year deal
worth £24million.
And, importantly, the contract also means restoring the name of
the stadium to St James’ Park.
But in hard economic times, owner Mike Ashley has been blasted
for getting involved with a company which offers loans at an
eye-watering representative Annual Percentage Rate of 4,214.
Incredibly, if Wonga loaned a punter £6m — the figure they will
give annually to United — the repayment after 12 months at that APR
would be £250m.
Ashley sparked outrage last November when he rebranded the
famous Geordie ground the Sports Direct Arena.
Even though ‘payday lenders’ Wonga, who also back Blackpool and
Hearts, will not appear on shirts until next season, sections of
fans are already fuming.
And the deal could also affect Toon’s devout Muslim stars Demba
Ba, Papiss Cisse, Cheick Tiote and Hatem Ben Arfa who may refuse to
wear any Newcastle shirt branded with the Wonga logo on religious
grounds.
Wonga’s controversial payday loan scheme infringes strict Sharia
law.
But boss Alan Pardew, who recently signed an eight-year deal,
thinks the new money will enable him to sign new players.
He said: “I’m a romantic. The stadium name was one of those
business decisions you can’t get your head around, so to have it
back as St James’ Park is great.”
Wonga replace Virgin Money as sponsors and will plough £1.5m
into the academy and Newcastle United Foundation Enterprise Scheme
which helps local kids get a taste for business.
But some are yet to be convinced.
Players Inc fanzine editor Steve Wraith said: “As always with
this regime, they create the negatives with every positive. Do they
really want to be associated with a company like that?”
Wonga founder Errol Damelin defended a move which city council
leader Nick Forbes has branded “appalling”.
Damelin said: “It’s a big club. It fits with our passion and
ambition.”