Magpies' stadium St James' Park to be known as Sports Direct Arena

The move, which is sure to draw a furious response from the club's supporters, is aimed at attracting a sponsor who will take over the full naming rights for the stadium.

Back in November 2009, Newcastle owner Mike Ashley announced plans to attach a sponsor's name to St James' Park, a decision that sparked outrage and even resulted in an early-day motion at the Houses of Parliament condemning the suggestion that was supported by 31 MPs.

The proposal was quietly shelved after no one came forward to take up Ashley's offer, and while further Sports Direct branding has been erected at St James', it appeared as though the club had bowed to supporters' demands to respect the history of one of the most iconic football stadiums in the country.

St James' Park is to be named the Sports Direct Arena

Instead, today's announcement will cause even more controversy, with Newcastle effectively ending the St James' Park era and inviting offers for the right to rename the ground. Until a sponsor comes forward, it will carry the name of Ashley's primary business, Sports Direct.

“Our aim for Newcastle United is to continue to deliver success for the fans and everyone associated with the club,” said managing director Derek Llambias. “We must make this club financially self-sufficient in order to deliver that success.

“To grow sustainably and allow us to invest in our future, we will need to rely increasingly heavily on commercial income. These are very difficult economic times and the board have a responsibility to maximise all revenue streams for the benefit of the club. Stadium rebranding offers a lucrative way for clubs to secure significant additional income.

“When we initially launched our plans at the end of 2009, we invited sponsors to attach their brand to that of St James' Park. However it has become clear that in order to make the proposition as commercially attractive as possible, a potential sponsor must be given the opportunity to fully rebrand the stadium.

“Naming the stadium the Sports Direct Arena helps us to showcase the opportunity to interested parties. We are now actively seeking a long-term sponsor wishing to acquire full naming rights for the stadium.

“Our shirt sponsorship deal with Northern Rock will also expire at the end of this season, which presents would-be sponsors with the opportunity to acquire both the naming rights and shirt sponsorship deals.”

In October 2004, Arsenal signed a 15-year deal with Emirates Airlines worth £100m for the naming rights to their stadium, while Manchester City's stadium was renamed the Etihad Stadium in the summer as part of a £400m deal that also involved shirt sponsorship and financial backing for a major new training development.

However, when Chelsea and Tottenham both scoured the market for a deal in the region of £10-15m a year recently, they were unable to find any backers.

Critics of Newcastle's proposals will also point out that Arsenal and Manchester City boast relatively new stadia that do not have a historical or emotional connection to a previous name.

The same is not true of St James' Park, which first hosted football matches under its current moniker in 1892.

“It's absolutely ridiculous,” said long-term Newcastle fan James Harrison, of Durham, who was aware of the impending news late yesterday evening. “It was bad enough when they were talking about calling it sportsdirect@St James' Park last time, but this just takes things a huge step further.

“I'm pretty sure all supporters are going to be up in arms about this. The St James' Park name belongs to Newcastle United – it's not Mike Ashley or Derek Llambias' to sell.

“My guess is that nobody will call St James' by its new name anyway. The fans certainly won't and I can't imagine many other people will either.”

Ironically, today's bombshell comes just as Ashley and Llambias were gradually beginning to win over supporters who had turned against them after a series of PR gaffes and questionable decisions.

The current owners have never been forgiven after an employment tribunal investigating Kevin Keegan's dismissal claimed they had admitted to 'repeatedly and intentionally misleading the press, public and fans of Newcastle United'.

The club's subsequent relegation blackened their name even further, with the surprise dismissal of former manager Chris Hughton provoking further howls of dismay.

Hughton's successor, Alan Pardew, has led Newcastle to third in the Premier League, and while August's failure to sign a successor to Andy Carroll rankled, most fans accepted Ashley's policy of reducing the wage bill and signing hungry, unproven young players had merit.

Today's news is set to turn the supporters against the board once more, and threatens to upset much of the stability that has contributed to the club's strong start to the campaign.