Northern Rock Renews Sponsorships

Despite its well-documented problems, publicly-owned UK bank Northern Rock will continue to sponsor Premier League team Newcastle United and rugby union club Newcastle Falcons.

Although the deals effectively involve taxpayer’s money, the government-appointed executive chairman Ron Sandler has told MPs that the sponsorship agreements with United and the Falcons were ‘in the commercial interests’ of the bank.

While the deals with the two Newcastle clubs will continue, the bank is axing sponsorship deals with county cricket clubs Middlesex and Durham.

Sandler told MPs: ‘We have already ended a number of sponsorships that I inherited but we have chosen to continue the sponsorship of Newcastle United and Newcastle Falcons, partly because of commitments we have entered into there and partly because I believe it is in the commercial interest of the bank that we should continue with both of these.’

Northern Rock have not disclosed the value of the current Newcastle United sponsorship, running from 2005 to 2010, although the club previously reported that commercial revenues of £25.7m in the 11 months to 30th June, 2006 were ‘enhanced by the impact of improved deals with the club’s two main sponsors Adidas and Northern Rock’.

Sandler also said it was essential to ‘maintain the roots and connections’ of the business with the North-East.