Northern Rock to sponsor Newcastle United for up to £10m

Published 18th Jan 2010

Nationalised bank Northern Rock has signed a new sponsorship deal with Newcastle United worth up to £10million.

The Newcastle-based lender, which started its relationship with the football club in 2004, will remain its main sponsor for another four years.

Northern Rock chief executive Gary Hoffman said he believed the deal represented good value to taxpayers.

'We remain mindful of our responsibilities under Government ownership and only consider those advertising channels that deliver a high return on investment and good strategic fit,' he said.

Under the contract, which starts from season 2010/11, is valued at a minimum of £1.5million.

Northern Rock will only pay out the full £10million if the club plays in the Premier League for all four years.

Newcastle, which was relegated from the Premier League in 2008/09, is currently placed first in the Championship League.

The deal will be reviewed after two years, the bank said.

Mr Hoffman said the sponsorship 'represents an important community link'.

'Brand awareness and promotion are important elements in the continuing development of the company,' he added.

The bank was taken into public ownership in 2008 after its lack of credit caused the first run on a British bank in more than a century.

It was divided in two at the start of the year, with the 'good' part to be sold off and the 'bad' part to remain in state hands.

UK Financial Investments, the government arm which looks after the state-owned banks, said it had no part in the sponsorship decision.

'UKFI does not get involved in operational issues and this was an operational issue,' a spokesman said.

Northern Rock has ended its sponsorships of county cricket teams Middlesex and Durham in 2008.

But it has maintained deals with Newcastle Falcons rugby and Newcastle Eagles basketball teams since nationalisation.

Source: ' Daily Mail '

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