St James' deal a steal for Wonga with stadium naming rights only worth 1.5m
21:30 GMT, 20 October 2012
Controversial new Newcastle sponsor Wonga is paying the club 1.5million a year for the naming rights to St James’ Park — less than half the valuation estimated by sports marketing experts.
It has been revealed Newcastle commissioned an investigation into the valuation of naming rights prior to rubber-stamping the Wonga deal and were informed they could expect to command between 3m-4m each year.
Let's get fizzy-cal: Newcastle supporters celebrate the stadium name changing back to St James' Park
Despite the findings of the report,
Newcastle owner Mike Ashley and the club’s directors gave the green
light to a deal worth considerably less. It is a decision that has
restored the traditional name of the ground.
It is understood Newcastle have actually signed two separate contracts with the loan firm.
The stadium naming rights deal will
run for four-and-a-half years, while Wonga has also agreed a four-year
shirt sponsorship deal, starting next season, which is worth between
6m-8m a year.
The boss: Magpies manager Alan Pardew said last week he welcomed the change back to St James' Park