MP asks Commons for debate on 'fit and proper' test for sports sponsorship
Companies planning to advertise with football teams should undergo a "fit and proper" test, MPs heard today, as the row over Wonga's link-up with Newcastle United continued.
United season ticket holder and Labour MP Ian Lavery condemned the deal in the Commons, demanding a Westminster debate to scrutinise such arrangements.
He said:
Will the Leader of the House make time for a debate on sports sponsorship, with the ultimate objective to put in place a fit and proper companies test for future sponsorship at major sporting events?
I name the likes of Atos and Wonga which, in my belief, are companies which are pretty dubious to be able to sponsor major events in this country.
– Ian Lavery, Labour MP for Wansbeck
Commons Leader Andrew Lansley urged Mr Lavery to seek an adjournment debate, adding that the Culture, Media and Sport Select Committee could examine sports sponsorship.
Newcastle's Muslim stars warned against wearing Wonga logo
Papiss Cisse, pictured, Demba Ba, Hatem Ben Arfa and Cheick Tiote are among Newcastle stars who are practising Muslims. Credit: PA
The Muslim Council of Britain has warned Newcastle's Muslim players that wearing shirts carrying Wonga's sponsorship could infringe Sharia law.
Shaykh Ibrahim Mogra, assistant secretary general of the MCB, told the Independent:
"The idea is to protect the vulnerable and needy from exploitation by the rich and powerful.
"When they are lending and are charging large amounts of interest, it means the poor will have short-term benefit from the loan but long-term difficulty in paying it back."
"The Islamic system is based on a non-interest-based system of transaction," he added.
Mogra points out that former Tottenham striker Frederic Kanoute, a practising Muslim, was allowed to wear an un-branded shirt when playing for Sevilla, who were at the time sponsored by gambling firm 888.com.
Pardew: Wonga money 'helps me with the first team'
"I'm not a business man, and I can't always see sense in some of the decisions," said Newcastle manager Alan Pardew, "but that decision [to bring back the St James' Park name] I really like."
The club's sponsorship deal with Wonga is thought to be worth £24m over four seasons.
"The finance that it gives me directly helps me with the first team and indirectly is going to help me with the academy and foundation," he said.
"We've been following the controversy over the stadium naming rights and we're fans ourselves - football fans - and we totally get the passion that comes with football," said Wonga CEO and founder Errol Damelin.
"We listened to the fans - the fans want it to be called St James' Park, and we're delighted to be able to be part of solving that problem."
St James' Park was called the Sports Direct Arena for a brief period. Credit: PA
Newcastle United had risked its brand value by associating itself with Wonga, a marketing expert said.
Toon fan Dr Joanna Berry of Newcastle University Business School, who is based across the road from the stadium, said future sponsors might feel the club has been tarnished.
"If you were the Emirates, Virgin, British Airways or any of the global, creditable brands, would you want to follow Wonga?" she said.
"From a marketing perspective, the reputational risk is significant."
She said while it was a "clever" move to rename the stadium, it had never changed in the eyes of the fans.
Unite union: Wonga 'preying on the poor and desperate'
Unite, which has mounted a campaign against payday loan firms, attacked the deal, claiming it was being used to "normalise legal loan sharking".
Regional secretary Karen Reay said:
This is the day when Newcastle's owners sold this city's great footballing name for 30 pieces of tainted silver.
Payday lenders are preying on the poor and desperate in the North East, which has some of the highest levels of debt and borrowing in the country. Newcastle United is now being used by Wonga to normalise legal loan sharking.
Newcastle fans, who could be borrowing up to £325 per month just to get by, let alone get along to a game, will feel sickened that the club they love will now be associated with the extortionate rates of credit that make their lives a misery.
Unite urged the club's owners to reconsider the deal, warning it will "tarnish" the city's footballing and community culture.
Newcastle MD: Wonga has desire to invest in community
Derek Llambias, right, seen with Newcastle owner Mike Ashley. Credit: PA
Derek Llambias, Managing Director of Newcastle United, said: "We are building a club that can regularly compete for top honours at the highest level.
"As everyone knows, a strong commercial programme is vital to this goal and I am delighted to welcome Wonga into the fold as our lead commercial partner, alongside Puma and Sports Direct.
"Throughout our discussions Wonga's desire to help us invest in our young playing talent, the local community and new fan initiatives really impressed us and stood them apart from other candidates."
