News is coming through that Newcastle United have said it is terminating its sponsorship deal with Virgin Money a year early, after the two year deal was only signed last January, and said to be worth up to £20M, over the two years.
Newcastle will be announcing a new sponsor soon, and a Virgin Money spokesman said they wanted to continue as the team’s main sponsor, so we can only assume Newcastle have agreed a much better financial deal with some other sponsor.
The news deal should be announced soon, but will not take effect until next season.
Newcastle issued this statement this afternoon:
“Whilst Virgin Money will remain as club sponsor until the end of the current season, Newcastle United has chosen to exercise its contractual right, as both parties had the option to do, to end the two-year sponsorship deal with the bank at the end of this season.” “The Virgin Money name will continue to be worn on the iconic black and white shirts for the remainder of this season.”
Jayne-Anne Gadhia, chief executive of Virgin Money issued the following statement:
“We were delighted to sponsor Newcastle United given the club’s importance to the North East and had hoped that this would be a relationship that would flourish for years to come.” “However, they have found a different option and we have to respect that.” “We remain sponsor until the end of the current season and the Virgin Money name will continue to be worn on the iconic black and white shirts until then.”
Newcastle United Managing Director Derek Llambias added issued this statement:
“We have enjoyed a very successful partnership with Virgin Money, however we have decided to end the agreement early and we will be announcing a new sponsorship partner shortly, which represents an excellent commercial deal for both parties.”
We kind of liked the Virgin Money logo on the shirts and the red lettering matched in well with the famous black and white striped shirts.
But where money is involved of course that means nothing – and it will be interesting to see who the new sponsors are – and whether they have also signed up for the naming rights to St. James’ Park as part of the deal.
It seems clear that Newcastle have forged a better financial deal with another sponsor, and that was probably helped with the club now competing again in Europe.
Howay The Lads!!