The Mail on Sunday is reporting that Wonga is paying £1.5M a year for the naming rights of St. James’ Park, and that’s close to our estimate of £2M we made recently.
£1.5M a year to have this sign put back up – not bad
That’s not a big surprise to us, because Wonga is getting very little out of the deal – it’s not as if the stadium is called Wonga Stadium where the company’s name is used during matches and the like, and they get all the resulting publicity.
In fact the deal Mike Ashley made was to get Wonga to pay the club £1.5M a year over four years to change the name back to St. James’ Park from the name of his company, so nobody should be surprised it’s a small amount being paid – it’s a little surprising that Wonga paid that much.
We had estimated around £2M out of the £8M a year Wonga is paying the club to have St. James’ Park back on the stadium.
When you think of it – that’s some business deal by the club.
Derek Llambias had been hoping to get up to 10M a year on the naming rights, but that would be some company who could come in and name the stadium say Nike Park, and get all the resulting publicity.
The Mail is saying the club undersold the naming right but you cannot have it both ways, and the Mail are comparing apples and oranges.
They are talking about the naming rights of the stadium, which is to have another company’s name put on the stadium – and the naming rights that Wonga signed up on their contract of four and a half years, is to have St. James’ Park back as the name.
They’re not the same thing.
Would you have liked Newcastle to get say £5M a year from Wonga to have it called Wonga Park, or just £1.5M a year to have it called St. James’ Park?
As far as business goes – £1.5M is a great deal for Newcastle to have somebody pay them to have the stadium named St. James’ Park – something it had been since 1892 until about a year ago.
You can also reach Ed at firstname.lastname@example.org