EPL club Newcastle United has "agreed to a two-year deal for Virgin Money to become the club's new shirt sponsor" in an agreement that could be worth up to US$31M, according to Luke Edwards of the London TELEGRAPH. The deal "brings to an end weeks of negotiations between the club and Virgin" after Virgin Group Chair Richard Branson agreed to buy out Newcastle-based bank Northern Rock. Negotiations were "only concluded late on Tuesday night ... which led to [a] frantic race to get the team's shirt emblazoned with the new logo before Wednesday's night game against Manchester United." Virgin will "take over the terms of the existing Northern Rock deal, but have also decided to commit for the next two seasons." The company has "offered the first 10,000 supporters who bring their shirts to the club shop a free replacement logo to cover the old Northern Rock one." Newcastle had "hoped to find a combined sponsor for the shirt and stadium after owner Mike Ashley changed its name from St James’ Park to the Sports Direct Arena in November, but there is still no news of a stadium deal." The club has "not made any mention of the stadium naming rights in their deal with Virgin Money and it is not clear whether Branson’s company [was] offered the chance to combine the two as had been mooted by Newcastle" (London TELEGRAPH, 1/5). MARKETING magazine's John Reynolds notes Virgin Money execs wanted the brand's name on Newcastle's jerseys "for last night's match against Manchester United, but were forced to use stick-on logos on the players' jerseys due to time constraints." A company spokesperson "ensured that the new Virgin Money-branded shirts would be on show for Newcastle's next game" (MARKETINGMAGAZINE.co.uk, 1/5).
CHANGE OF PLANS: In England, Owen McAteer notes with the Northern Rock name "still on the firm’s website and the intention to phase it out gradually, Virgin originally indicated that there were no imminent plans to change the sponsorship on players' shirts after eight years." Virgin Money Chief Exec Jayne-Anne Gadhia said Tuesday, "It will still be Northern Rock on the shirt as usual" (NORTHERN ECHO, 1/5).
