da stake casino： Over the past week, the short-term loans industry has received its fair share of negative press. Protests against Wonga becoming Newcastle United’s new kit sponsor have been rife for some time, but the controversial business deal has once again become the focus of attention on Tyneside as star striker Papiss Cisse has refused to wear a Magpies’ shirt donning the loan company’s name on religious grounds, being a practising Muslim, while Bolton have scrapped their planned partnership with money-lenders QuickQuid following a strong adverse reaction from supporters.
da pixbet： Views on bankers and banking practises in England had been damaged enough by the credit crunch and subsequent recession, but there appears to be a far more sinister widely held opinion regarding short-term lenders such as Wonga. Their critics have referred to them as a ‘legal loan shark company’, while an advertised APR of 4,214% is clearly extortionate.
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Furthermore however, the short-loans trade has developed a reputation for preying on those who need financial support most, making up to £1,000 available to clients in under 10 minutes in Wonga’s case, only to land customers with hefty penalty fines for missed payments on top of outrageous interest rates, and even going on to cease assets or repossess property for those who can’t afford to pay back what they’ve borrowed. In one word, the business models of Wonga and QuickQuid can be described as ‘immoral’.
It begs the question as to whether our football clubs, either plying their trade within the Premier League or the tiers of the Football League, should be allowed to be making business deals with such companies. Should clubs such as Newcastle be bearing greater moral responsibility, rather than endorsing corporations that prey upon the monetary weaknesses of those feeling the pinch during Britain’s economic depression?
Perhaps the link between club and community has been overall stretched by the commands of the modern game – although community projects are still common, and better funded following English football’s commercial revolution, the sense of connection between clubs, the players, the supporters and the surrounding area has diminished.
Yet on Tyneside, the synergy of club and community is much stronger than in London or Manchester. St. James’ Park is always at full capacity, regardless of the Magpies’ form or the ability of their opponents, and the feeling is that Wonga are trying to hijack the unique bond for their own gain, by using Newcastle as a vehicle to normalise the use of short-term loans in the community.
The localised advertising power a sponsorship deal provides is truly worrying. Whereas TV commercials are a more powerful, widespread tool, should all of the 880,000 population of the Tyneside conurbation be Magpies supporters, that’s nearly a million people the club itself are directing endorsing a morally corrupt product to, not to mention the further millions watching match-day coverage or highlights of any particular fixture. Furthermore, it has the potential for 880,000 to walk around Tyneside as advertising sandwich boards with the word Wonga written across them.
It is particularly concerning considering Newcastle’s economic situation, which adds a whole new layer of moral corruption to the controversial deal with Wonga. The North East has the highest rate of personal insolvency in England, at 35.2%, while the city of Newcastle, in addition to being traditionally working class, currently has a third of its child population living in poverty, 12% higher than the national average.
Similarly, Newcastle City Council leader Nick Forbes believes that the deal will also reflect badly on the city itself, claiming last October: “I am appalled NUFC are in talks with a legal loan shark company. This is another example of the club’s profit at any price culture, which is destroying the image of the club and the city.”
A disregard for fans’ interests has been a symptom of Mike Ashley’s tenure as Newcastle owner. The Sports Direct founder has been criticised for his controversial appointments and sackings, hiring Dennis Wise as Sporting Director, who went on to challenge Kevin Keegan’s authority during his second spell with the Magpies, and firing Chris Hughton in favour of Alan Pardew. On the business front, Ashley received waves of protests from fans after re-naming St. James’ Park as ‘The Sports-Direct Arena’ for commercial purposes, and the new Wonga deal is just the latest episode in the Newcastle chief’s turbulent relationship with the fans, often putting business first.
But there is no doubt that as a football club, Newcastle are benefiting from the sponsorship revenues provided by the partnership with Wonga. The contract is worth £8million per season, and will equate to £24million in profit by the time of its expiration. According to an article by BBC News, £1.5million will go directly into the club’s academy, while further funds will be put into community schemes directed by the club to find jobs for younger people in the surrounding area. They will also rename Newcastle’s stadium St. James’ Park, in a bid to sugar-coat the deal for the supporters.
Furthermore, Wonga are hardly new to the world of football sponsorship deals. Blackpool and Hearts are already sponsored by the short-term lenders, and they are certainly not the only company to partake in a practice which can be accused of lacking a moral compass. Alcoholic endorsement has a long heritage in England, while many Premier League clubs including Aston Villa and Swansea are sponsored by Casino companies, and Newcastle’s former sponsors, Northern Rock, handed out 125% mortgages in addition to being the linchpin that triggered Britain’s economic crisis.
The actions of Northern Rock are hardly comparable to those of Wonga however, with the latter providing interest rates of 4214% per annum, and the 7% of their customers who fail to repay their loans having their credit rating tarnished.
The question remains however; what can supporters actually do to stop these deals taking place? A petition with 5000 signatures was enough to convince Bolton chairman Phil Gartside to change his mind, but overall, the decision came at the owner’s digression, which is exactly why Mike Ashley has been so unfazed despite stern protests from local politicians, the supporters and even his star players.
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The sad truth is, the days of clubs being a focal point of the community have been and gone. Despite the fact that football as a sport could not exist and would not receive such widespread affection without firstly the supporters and secondly the intense community bonds and rivalries which makes the experience of victory and defeat so emotionally overwhelming and seemingly crucial to our lives, it remains one of the most inelastic products on the planet.
Whether or not the Magpies are sponsored by Wonga, Charles Manson or Enron, the chances of supporters turning their backs on their club in the form of a boycott remain incredibly slim. Unfortunately for the spectators of the English game, they can only continue to stand idly by as our clubs slip further away from the interests of the fan base and closer towards the realms of business and commerce.
Rather than this instance being the tip of the iceberg, it will undoubtedly ratify and justify further deals of equally questionable conscience to other owners in the future.
Should Newcastle be conducting business with Wonga?
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