Newcastle: Wonga Officially Rename St James Park

As confirmed on Sky Sports News, the deal which has just seen digital pay-day lenders Wonga named as the new lead commercial partner for Newcastle United will see the name of the Magpies' stadium return to St James Park, and not a Wonga rebrand as had been widely tipped (and criticised). The deal, which Newcastle have just announced on their official website, will include the sponsorship of the club's shirts, as well as stadium sponsorship, but Wonga have made the decision to officially revert to the original, iconic name of the stadium, and in doing so have pulled off one of the best marketing decisions they could ever hoped for with the announcement of the sponsorship deal already attracting criticism for the nature of the company. The sponsorship partnership will see Wonga invest in Newcastle United's youth by providing "significant financial support for the Academy," which will allow Newcastle to transform its Academy into "one of the leading centres of youth football development in the country, enabling us to nurture the top playing stars of the future." According to the official report, Wonga will also invest in one of the club's high-profile community projects:
"Wonga has also committed to invest in the Newcastle United Foundation Enterprise Scheme. The existing programme helps 15-16 year-olds find employment by developing their skills and experience through practical and educational courses. Wonga's investment will vastly expand the scheme and help more young people in the North-East in their future careers."
The sponsorsip package will also include a "straight talking" fan forum for discussing ideas for fan involvement in the Club and working on a specific new initiative to involve fans in the design of the shirt. Chances are, black and white stripes will feature heavily. Derek Llambias, Managing Director of Newcastle United, heralded the news of the deal with the following statement:
"We are building a club that can regularly compete for top honours at the highest level. 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, alongside Puma and Sports Direct. Throughout our discussions Wonga's desire to help us invest in our young playing talent, the local community and new fan initiatives really impressed us and stood them apart from other candidates."
Errol Damelin, founder and CEO of Wonga said:
"We're really proud to be involved with Newcastle United. It is one of the biggest and most important clubs in the UK by any measure and has a fantastic following around the world. We're also really excited about investing in future stars both on and off the field. The Academy and the Enterprise Scheme gives us the opportunity to make a big difference. We have just launched our small business offering and there are more great products to come. We know our customers love football and it goes without saying that, alongside Newcastle United, we will continue to support Blackpool and SFA Cup Winners Hearts."
On the opposite side of positive responses to the official new change, the deal with Wonga has attracted criticism because of the company's high-interest short-term loans that charge a representative APR of 4,214 per cent, with Ian Lavery, the Labour MP for Wansbeck saying he won't return to the stadium until the deal is finished:
€œNewcastle United will be sponsored by the money of deprived people up and down the country. 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. I have more and more people coming to see me and saying that as a result of job losses or benefit cuts they are being forced into these terrible but legal money lenders whose interest rates only then trap them into further debt.€
But along with the criticism there is definitely the suggestion that Newcastle fans will accept the deal thanks to that clever caveat of the return of the St James Park name. So there you have it, Newcastle fans, the stadium is officially renamed St James Park, in a move that does feel a little bit like the infamous rebranding of New Coke - but I wouldn't dare suggest this was the plan all along to make the appeal of buying an inflated sponsorship deal stronger with a positive marketing move...
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