4:36PM, Mon Oct 8, 2012

Council Leader Writes To Mike Ashley Over Newcastle United Sponsor Rumours

By Andy Hughes Location: Newcastle City Centre

VIDEO: Council leader says he will oppose Wonga sponsorship

Council leader Nick Forbes has accused Newcastle United of chasing "profit at any price" after reports of a shirt sponsorship deal with payday lender Wonga.

National newspapers reported on Sunday October 7 that Wonga was about to become the club's new shirt sponsor.

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.

But Cllr Forbes said he is appalled by the rumours and has written to Mr Ashley to “warn him of the social consequences” of the deal.

The letter, which has been seen by Sky Tyne and Wear, says: “I believe that it is the wrong image for Newcastle, NUFC, and football as a sport.”

VIDEO: Your view - Should Wonga sponsor Newcastle United?

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

After hearing the news 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.

Newcastle United were unavailable for comment.