Payday lender Wonga is set to become the new shirt sponsor of Newcastle United Football Club, according to reports.
Wonga already sponsors Scottish Premier League club Hearts and English Championship club Blackpool. Premiership rules allow brands to sponsor different teams, meaning Wonga could continue to sponsor both Blackpool and Newcastle if Blackpool is promoted to the Premiership.
It is understood the deal being negotiated is only for sponsorship of the club’s shirts and not of its stadium, which was renamed the Sports Direct Arena earlier this year after club chairman Mike Ashley’s company. The ground was formerly known as St James’ Park.
Last week, Virgin Money announced Newcastle United had chosen to end its two-year sponsorship deal early. The agreement was due to run until the end of the 2013/14 season in May, but the deal stated either party could end the agreement early by giving notice.
Wonga offers short-term loans for up to 30 days to cover people until they get paid. The lender typically charges a representative APR of 4,214 per cent on loans.
Wonga refused to comment.
Newcastle United was unavailable for comment.