Newcastle to end Virgin Money deal with Wonga waiting in the background.

Newcastle United is set to end it's association with Virgin Money canceling the deal with the Richard Branson owned company a year early.

The two year deal, which is estimated to be worth £10million will be cancelled early at the clubs request. Virgin Money came in early last January as the clubs principle kit sponsor in the wake of the Northern Rock banking bailout scandal.

The Magpies will now be on the look out for a new sponsor, with the club revealing a new deal should be announced soon. Controversial owner Mike Ashley has recently secured significant capital from the beleaguered sports retailer JJB. With the Wigan based company officially  going to liquidation yesterday. Ashley's company Sports Direct is set to secure the JJB brand, website and 20  existing stores in a £24m deal.

Of course this is not the first time that Newcastle have experimented with new sponsorship deals, the club renamed the iconic St James Park to the Sports Direct Arena in November 2011 with the club saying at the time the change is a temporary measure to "showcase" the sponsorship opportunitys to "interested parties". However little interest seems to have emerged on the deal, which was seen as an incredible PR mistake from the Newcastle hierarchy.

Speaking of the breakdown of the deal Jayne-Anne Gadhia, chief executive of Virgin Money said: "We were delighted to sponsor Newcastle United given the club's importance to the North East and had hoped that this would be a relationship that would flourish for years to come.

"However, they have found a different option and we have to respect that.We remain sponsor until the end of the current season and the Virgin Money name will continue to be worn on the iconic black and white shirts until then."

Speculation will now be rife as the potential new & stadium sponsors being lined up, recent reports linking the payday loans company Wonga with an £8million pound deal potentially on the cards. The company who already have a sponsorship with Championship side Blackpool, are the purveyor of loans which are payable back at extortionate rates of interest. Although the prospect of the Magpies of running out at the Wonga stadium is pretty funny, it's hardly the best example for a Premier League club of Newcastle's stature to take.

Newcastle have in the past have had a long and successful relationship with Newcastle Brown Ale in the past. With many of the kit designs transcending that tricky football stand to fashion boundary (well at least in Newcastle!) The awkward image below sums up the status of the kit in the late 90's of the shirt of choice for many North Eastern gents. With the bloke at the center of the picture, the toast of his friends.

Regardless of what happens with the deal, the powers at be should consider what to do in terms of the clubs next sponsorship opportunity. If all being well the club could have the potential to sell itself to a whole new world of fans, however if the proposed Wonga deal was to go through it could spell another PR disaster for the Toon Army.