LLambias Delighted With Wonga Deal – We Did Our Research


Derek LLambias was forced to defend his decision to sign a sponsorship deal with Wonga, the pay-day loan company, and Derek says the club did background research into the company, and found nothing wrong with the way they do business.

Alan Pardew and Derek LLambias at news conference yesterday

The deal has the Newcastle City Cuncil members seemingly up in arms, that Newcastle United have become associated with a company that hardly has a good name in the UK.

This is how Derek LLambias defended Newcastle’s decision:

“We have done our background research into Wonga. They are a legal company, they have licences.” “They have 30,000 customers in the region. Their complaints are next to zero. There are banks and institutions with far worse feedback than Wonga. There are enough people saying Wonga is a terrible brand, but why?”

“People buy into Wonga because they buy into it. You are not forced to sign a deal with Wonga, you are not forced to sign a deal with any bank or lender. People in the North East or anywhere, have a mind to themselves to decide whether they want to sign a deal or not. I am delighted to have this club associated with this brand.”

One reason it’s thought that sponsoring Newcastle would be a good deal for Wonga, is that they are expanding into South Africa, where Newcastle have a very good following, as you saw in the summer, when there were rumors Newcastle would play some of their pres-season games there.

What are the chances that Newcastle will tour South Africa next summer?

It would be great for the many fans in South Africa, who were bitterly disappointed that Newcastle chose not to play there last summer.

Finally, we are running a poll to try to gauge what fans think of the overall deal – please vote if you haven’t already done so.

Do You Approve Of The Overall Wonga Deal?

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78 comments so far

  • Toon_Army

    Oct 10, 2012 at 11:16 AM

    Comment #1

    First thing he has said that I probably believe…

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  • estechco

    Oct 10, 2012 at 11:18 AM

    Comment #2

    Repost:

    I’m deliberately keeping out of the morality arguments regarding the Wonga deal. My own gripes would probably be deemed insignificant in the grand scheme of things, but I was interested to find the following article when Hearts went through the same process…

    http://www.ianfraser.org/hearts%E2%80%99-loan-sponsor-wonga-com-branded-immoral-by-kirk-leader/

    Notice the Wonga logo in Heart’s colours? Wonder whether we might avoid the ugly blue across our own?

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  • PaddyToon

    Oct 10, 2012 at 11:23 AM

    Comment #3

    Agreed…NUFC must come tour SA… was horrible when they cancelled! howay te lads

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  • jawballsaswallwell

    Oct 10, 2012 at 11:29 AM

    Comment #4

    The Wonga deal is maybe not as appalling as the renaming of the ground, but it’s the same ballpark and also, just quietly, I wouldn’t trust Derek Llambias to sit the right way on a toilet.

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  • Peter Beardsley

    Oct 10, 2012 at 11:30 AM

    Comment #5

    @totsy
    “the high interest rates only cover the company’s losses”!
    Wonga made a net profit of £45.8m last year. It seems that the high interest rate also went into covering more than the company’s losses!

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  • Markaccus

    Oct 10, 2012 at 11:41 AM

    Comment #6

    @peter, sureley a company is entitled to make a profit, on top of covering it’s losses? Otherwise what’s the point of having a business? If I had a business that only broke even every year I’d be pretty iritated!

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  • Graeme

    Oct 10, 2012 at 11:41 AM

    Comment #7

    I’ll be happy in my “Broon Ale” shirt, as usual.

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  • tarie4

    Oct 10, 2012 at 11:43 AM

    Comment #8

    Peter Beardsley //

    Are fair enough. If thats what U believe then fine. I am definitely buying a top next season, as i have been doing so since 2004, and I believe I neither approve or disprove wonga, but am supporting my beloved nufc. As del boy said and I agree

    ““People buy into Wonga because they buy into it. You are not forced to sign a deal with Wonga, you are not forced to sign a deal with any bank or lender. People in the North East or anywhere, have a mind to themselves to decide whether they want to sign a deal or not.”

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  • Shane

    Oct 10, 2012 at 11:44 AM

    Comment #9
  • Peter Beardsley

    Oct 10, 2012 at 11:48 AM

    Comment #10

    “There are enough people saying Wonga is a terrible brand, but why?” Spoken by a man who clearly doesn’t live with the stress of having to make ends meet! People are desperate to feed their families and pay rent because of the economic climate(look up bankruptcy rates in the north-east for example) they can suffer from symptoms such as: chronic stress, psychosocial pressure, fatigue and depression. “People in the North East or anywhere, have a mind to themselves to decide whether they want to sign a deal or not” it’s a shame LLambias overlooks the medical implication which can be exploited by company’s like Wonga.

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  • toon1707

    Oct 10, 2012 at 11:50 AM

    Comment #11

    I wish people would stop moaning wonga are putting money into the club and into the youth set up so I am more than happy with the deal. If people want to use wonga its there own choice but what I don’t understand is they offer the same service as northern rock and virgin money but nobody minded that at all

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  • Deadpool

    Oct 10, 2012 at 11:50 AM

    Comment #12

    The problem is that the reported £10 million per year is a small sum for a large club and over 4 years it will guarantee that Ashley will keep the spending to a minimum.

    The financial fair play rules will do nought but widen the margin between clubs.

    If we only make a revenue of £20 million per anum that is all we can spend. Clubs like Citeh and Man Utd will turn over huge profits and so can spend more. It will monopolise every major European leauge to every big club.

    This deal, regardless of the company, is truly awful and doesn’t benefit anyone other than Wonga and the nufc board.

    As long as we avoid relegation and bring through youngsters that we can sell on for massive profits the owner will be happy and we as fans can look forward to 8 years of poor football, big names being sold and mid table obscurity.

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  • beefman13

    Oct 10, 2012 at 11:51 AM

    Comment #13

    Peter beardsley, piss of with your false morals, you frigan hypocrite!

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  • Peter Beardsley

    Oct 10, 2012 at 11:52 AM

    Comment #14

    @Markaccus

    It’s where the profit comes from which I have a problem with.

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  • Peter Beardsley

    Oct 10, 2012 at 11:54 AM

    Comment #15

    @beefman13

    Thanks for your abusive language!
    What part of my argument do you disagree with and why?

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  • beefman13

    Oct 10, 2012 at 11:54 AM

    Comment #16

    The profit comes from the interest on top of the loan that the people have been grateful for, who the hell are you to come on this blog preching morals to people, same for you deadpool as well. makes me puke.

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  • Mister Tuff

    Oct 10, 2012 at 11:58 AM

    Comment #17

    If people turn a blind eye to Wongas’ dubious methods they are in my opinion complicit in those methods. If people believe the reported hogwash that Wonga wanted to revert the name of the ground back to SJP as part of the deal, then I am the tooth fairy, wake up you fools. Anybody but a blind man can see it was a device to lessen the opposition to the deal with Wonga.
    There is masses of evidence from people who contacted Wonga about a loan who were either refused or decided not to proceed who suddenly had monies withdrawn from their bank accounts by other loan companies and have never seen it since. The common denominator is contact with Wonga who are clearly passing/selling personal details to these other companies.
    Any reported shenanigans by Wonga in the future, rightly or wrongly is, now going to be linked by the press to Newcastle United –thus sullying the name and the North East but as Pardew thinks it’s OK and a lot of fans, who have “sold out” because of the wonga from Wonga think it’s OK– well it must be OK.
    Wake up fools.

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  • beefman13

    Oct 10, 2012 at 11:59 AM

    Comment #18

    Who are you, are you from human rights! have you a bank account have you a credit card is your life perfect,

    beacuse a lot of folk find themselves in bad financial situations and wonga etc are the only way they can get some money, pay back on time no problem which the large majority do.
    people preaching about the morality of our deal from on top of the mountain. and i would say you dont like MA or DL anyway, correct!!! lemon suckers! u r.

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  • Peter Beardsley

    Oct 10, 2012 at 12:02 PM

    Comment #19

    @beefman13

    “the people have been grateful for”
    Are you sure that all the people are grateful for the loans? last year 32% could not pay off the loans. People who suffer from medical conditions(such that I have listed above) are not screened by Wonga, nor do Wonga provide help for such people, on the contrary, they profit off of peoples poor circumstances and their whole business model is bassed on this fact.

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  • rainrix

    Oct 10, 2012 at 12:04 PM

    Comment #20

    You know i bet if this was a lesser team being getting a sponsorship deal there wouldn’t be any articles by journalists about how being sponsored by wonga is “immoral”. Swings and smegging roundabouts 😐

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  • Peter Beardsley

    Oct 10, 2012 at 12:06 PM

    Comment #21

    @beefman13
    Re post:

    If they really cared about the people they make loans to, then perhaps they would charge a maximum APR of say 21.63%APR which is the law in France, or 16.4% in Germany, NOT 4,214%!!!

    The quest for ever increasing profit is blind to the reality of the suffering it can impose on people. This is why we have
    government regulation to keep the free market in check. Pay-day loans are currently unregulated.

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  • beefman13

    Oct 10, 2012 at 12:07 PM

    Comment #22

    Every big corporation who ever they are trying to make as much profit as possible which ever way they can they are all ruthless buggers.

    many football clubs are sponsored by so called dubious companys and many by banks and booze, not a mention in any paper when liverpool and man utd signed big deals with corporations that took billions from people.

    The press always have a pop at us whatever we do just as the lemon suckers who support NUFC but dont like MA do, its a fact it is pure nasty bitterness.

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  • estechco

    Oct 10, 2012 at 12:07 PM

    Comment #23

    rainrix @20 – Do Hearts qualify as ‘lesser’. See my link @2?

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  • Kebabacus

    Oct 10, 2012 at 12:09 PM

    Comment #24

    1- if they put the Wonga logo inside a blue star with the writing really really small, it would look quite nice.

    2- money lending is the second oldest profession there is. Banks all do it and shaft their customers every chance they get. I doubt anyone would have complained about Loyds or Barclays as sponsor.

    3 – the Muslim players might require a non-branded shirt, as speculated on nufc.com. This would be perfect. I hate advertising on shirts, whoever it is. (with the exception of the Brown Ale star, still the only Newcastle shirt I ever wear).

    4 – the word Wonga is offensive to my ears. If the company were called Newcastle Finance or some such, nobody would be moaning.

    That’s the answer Wonga! Change yer frickin name!

    How about St James Finance?

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  • tarie4

    Oct 10, 2012 at 12:10 PM

    Comment #25

    “Peter Beardsley // Oct 10, 2012 at 11:48 AM

    “There are enough people saying Wonga is a terrible brand, but why?” Spoken by a man who clearly doesn’t live with the stress of having to make ends meet! People are desperate to feed their families and pay rent because of the economic climate(look up bankruptcy rates in the north-east for example) they can suffer from symptoms such as: chronic stress, psychosocial pressure, fatigue and depression. “People in the North East or anywhere, have a mind to themselves to decide whether they want to sign a deal or not” it’s a shame LLambias overlooks the medical implication which can be exploited by company’s like Wonga”

    Unbelievable, mate u are being very unreasonable. U are looking at this deal from one point if view, try be balanced and look at it from the clubs point of view. In business u weigh ur options, look at the pros and cons. Del boy also pointed something out that u ate clearly overlooking.

    “They have 30,000 customers in the region. Their complaints are next to zero. There are banks and institutions with far worse feedback than Wonga. There are enough people saying Wonga is a terrible brand, but why?”

    Yes they medical concerns involved which U rightly state, but they are not the majority, they must be the odd cases. And U are picking up on those as if they are loads and loads of cases, really??

    you also have to knw, that just like politics, U can’t please everybody. U will always have opposition, no matter how popular U are. What is need is a majority, and as the blog states 61% of pple (on this blog) approve the deal. Because there is 25 % who don’t, does that mean the deal is bad??

    Wonga are a legal entity they are not the mafia etc. As I.said before, our society is crippling because pple are blaming other pple for their problems and their debt. The 1st person to blame is the one standing in the mirror and then someone else, not the other way round.

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  • rainrix

    Oct 10, 2012 at 12:12 PM

    Comment #26

    Estechco… Sorry mate didn’t read your comment. But that is a respected person giving his honest opinion. What annoys me is every
    tom dick and harry journalist jumping on the old “wonga is immoral bandwagon. Could you imagine them doing it if it was wigan getting sponsored? Somehow i doubt it.

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  • estechco

    Oct 10, 2012 at 12:14 PM

    Comment #27

    Whilst we pretty much all seem to agree that Wonga are a nasty company to be associated with, @21’s comments seem to be one of the better I’ve seen.

    If we are all so morally abhorrent of this type of business, why have we not gone out of our way to lobby MP’s to regulate this currently unregulated area of business?

    That said, if we ran them all out of town, where would the folk who do claim to need Wonga’s services go for help.

    Perhaps the government could set up their own payday loan company, with a more realistic APR and help all concerned (including the country as a whole)?

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  • jesperfuglsang

    Oct 10, 2012 at 12:14 PM

    Comment #28

    Ed, if you are out there, can we a non Wonga related thread for everyone else than those who can’t get down from their high horse…

    …or I’ll just come back later when everything is back to normal (maybe it’s the international break that is getting the best of all)

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  • beefman13

    Oct 10, 2012 at 12:14 PM

    Comment #29

    Peter beardsley.

    take a loan out with wonga, pay it back on time cost about 20 quid extra for 200 quid.no problem.

    if you cant pay the full amount back their customer service department will work something out that suits both parties and that is a fact.

    if you just dont pay the loan back after the second montyh a certain percentage gets added every day up to the extreme high amount mentioned.

    the vast majority do pay back on time as its their only outlet, and the vast majority are working people as well according to their figures.
    they and others may have sprang up since the recession but they are a valuable service to a lot of folk each month.
    out, we are adults and in life we make our own decisions, not everyone can be as self rightous as some on here.

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  • Mister Tuff

    Oct 10, 2012 at 12:15 PM

    Comment #30

    We should not doubt that Dastardly did research into Wonga -the fact that he was wearing ear muffs and a blindfold at the time is neither here or there.

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  • rainrix

    Oct 10, 2012 at 12:15 PM

    Comment #31

    Well i thought this international break would be devoid of news stories and drama, thank god i was wrong 🙂

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  • Peter Beardsley

    Oct 10, 2012 at 12:16 PM

    Comment #32

    @beefman13

    It’s true it’s a nasty business, and because Liverpool and Man Utd sign such deals doesn’t mean that we have to, or that it is right.
    It’s hard not to live your life without contributing to such companies(try living without a bank account) I try and keep it to a minimum. The old saying that; “you vote with your wallet” comes to mind.

    I take gripe when a person like LLambias claims that this business is fare.

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  • -Tendo-

    Oct 10, 2012 at 12:18 PM

    Comment #33

    Man utd are or sponsored by AIG and weren’t they responsible for the recent financial crisis? But is anyone up in arms about that?

    At the end of the day wonga is a legalised loan shark which charges ridiculous interest….but no on us forcing people to use it, it’s their choice and they know what they’re getting into when using it

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  • Peter Beardsley

    Oct 10, 2012 at 12:19 PM

    Comment #34

    fair*

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  • tarie4

    Oct 10, 2012 at 12:20 PM

    Comment #35

    Mister Tuff // Oct

    “Any reported shenanigans by Wonga in the future, rightly or wrongly is, now going to be linked by the press to Newcastle United –thus sullying the name and the North East but as Pardew thinks it’s OK and a lot of fans, who have “sold out” because of the wonga from Wonga think it’s OK– well it must be OK.
    Wake up fools.”

    Wouldn’t that be the same as when northern rock went bust?? Did U complain then??
    Is that not the same if standard chartered (Liverpool) get embroiled in corruption charges. Ethiad etc. Its the same with any sponsor mate. I think Blackpool fans will admit that they have had no problems with wonga, and I think AP mentions this.

    “If people turn a blind eye to Wongas’ dubious methods they are in my opinion complicit in those methods. If people believe the reported hogwash that Wonga wanted to revert the name of the ground back to SJP as part of the deal, then I am the tooth fairy, wake up you fools. Anybody but a blind man can see it was a device to lessen the opposition to the deal with Wonga.”

    I.am sure most toon fans knw its a PR stunt. Read yesterdays article in the name change. But what does that have to do with us. We got our name back. That’s what we wanted no?? So what’s the problem? As I pointed out to Peter Beardsley, U are looking at this from one point of view. Look at both sides of the argument before calling pple fools.
    Coz U are the one who seems the fool 😉

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  • beefman13

    Oct 10, 2012 at 12:22 PM

    Comment #36

    jesper i know where you are coming from but its massive news on tynside and it may start to get boring for some but im not having bloggers on here bitching for the sake of it.

    yes its their opinion just like my opinion that i support NUFC and think everything is going great at the moment but still some dont agree.

    these lemons are worse than the press and they are supposed to support our great club and visit SJP yes SJP which was part of the nasty nasty deal.

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  • wolfshead@toon

    Oct 10, 2012 at 12:22 PM

    Comment #37

    i hate wonga cos of those cr@p adverts on channel 5

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  • PJ

    Oct 10, 2012 at 12:22 PM

    Comment #38

    What’s the big fuss, people have there own options, but wonga has a far better name on the market the northern rock did. I borrowed £120 the other day off wonga for 4 days and payed back £130, so that’s not bad I didn’t think, people need wonga just like I did to pay pills or simply like me I couldn’t quite make it to pay day, now if you get in debt and can’t afford it then you shouldn’t borrow money off wonga in the first place. Great bit off business by the club and wonga I think because everybody is talking about it

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  • Peter Beardsley

    Oct 10, 2012 at 12:23 PM

    Comment #39

    @-Tendo-

    “Man utd are or sponsored by AIG and weren’t they responsible for the recent financial crisis?”
    Yes they were and yes people should call them on it. But With AIG and Wonga it is a lack of regulation that leads to such behavior -Don’t hate the player, hate the game” Lol :)!

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  • pbNcl

    Oct 10, 2012 at 12:24 PM

    Comment #40

    Here beefman your a clown. Disprespecting another posters moral code and questioning such because he objectifies such a disgusting deal.

    Your name and attitude suggest you like beef, well I’m partial to a bit myself. So before you start chucking insults about jus brace yourself for a hefty slice back. Sir.

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