7:44PM, Sun Oct 7, 2012

Sky Sources: Wonga Not Negotiating For St James' Park Naming Rights

By Mark Masterton Location: St James' Park

Your View: Should Newcastle be sponsored by Wonga?

Sky Tyne and Wear understands payday lender Wonga has not held formal talks with Newcastle United over naming rights for St James' Park.

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Insider reports published on Sunday October 7 suggested that Wonga was about to become the club's new shirt sponsor, with some also claiming the company could take over sponsorship of the stadium from Sports Direct.

The Sunday Telegraph and the Independent both said they understood the consumer finance company was in discussions over a three-year deal starting in 2013.

The Telegraph suggested that a combined stadium and shirt deal was on the table potentially worth £8m a year and claimed it could be finalised within a fortnight.

The Independent reported only the kit deal.

It comes as Virgin Money announces its shirt sponsorship deal at Newcastle will be brought to an end a year earlier than originally agreed.

Wonga offers short-term loans online at a rate of 4214 percent APR. That compares to rates on certain credit cards such as Barclaycard Platinum of 7.9 percent.

Newcastle City Council leader Nick Forbes made his view clear on Twitter. He wrote: "Wonga about to sponsor NUFC? Disgraceful if true, will undermine all the work we are doing to crack down on legal loan sharking"

And Newcastle Central MP Chi Onwurah tweeted: "Please tell me its not true that nufc are looking at a shirt & stadium deal with Wonga?"

Wonga currently sponsors Championship side Blackpool and Heart of Midlothian in the Scottish Premier League but both those deals are scheduled to finish at the end of the current season.

St James' Park was renamed the Sports Direct Arena in November 2011 in a temporary deal with club owner Mike Ashley's sportswear empire while a more permanent sponsor is sought.