Rugby has had its fair share of scandals over sponsorship through the years – here are a few choice examples…
AJ Gallagher: Racism Scandal
As the current sponsors of Premiership Rugby, when the US based insurance brokerage and risk management company’s’ chief executive, Simon Matson, admitted to calling staff member Nawaf Hasan a “complicated fat Arab” it sparked a scandal that called into question whether AJ Gallagher should be the lead sponsors on premiership Rugby at all.
The Guardian reports public figures such as Vince Cable has said: “Such awful words from the chief executive of Premiership Rugby’s biggest and most prominent sponsor can only inflict damage on the sport.”
However, a spokesman for the company said: “Simon Matson takes his commitment to inclusion and diversity seriously, as does everyone in the leadership team at Gallagher,” and that the company adheres to “the highest standards of moral and ethical behaviour.
“The private messages that have been made public through this trial are more than two years old and have been taken out of context.”
CVC Capital partners: Country vs Club
With the need for cash injection Premiership rugby has been in talks with CVC Capital Partners, the ex-F1 owners private equity firm, who might be shaking up the sport with their profit first attitude.
As The Independent reports: ‘with CVC capital partners very much looking at the profitability of the Premiership, the current club-vs-country row could quickly spiral out of control according to the Independent.
Furthermore, at the moment as reported, ‘clubs are unhappy with the treatment of players when they join up with Jones’ England’s Coach squad after a spate of injuries since his arrival, but that is relatively low-key compared to what could be on the horizon.
CVC would likely demand an increase in financial compensation from the RFU for the release of players when the negotiations begin on the next deal between the two parties.
Betfred: Ethics of sports and betting
Super League is currently being sponsored by Betfred after a change of heart by the Rugby Football League who decided in the past to reject bookmakers (i.e.Betfair in 2012), making Betfred the first bookmakers to ever sponsor the league. The deal is estimated at £850-900,000 a year.
The RFL president Tony Adams, however, has expressed concerns about having bookmakers as their main sponsor because the Challenge Cup is also sponsored by bookmakers. He has been quoted in an interview with the BBC saying “It’s got to be a responsible industry,” and that though he is not “anti-betting” he has in the past struggled with gambling and alcohol addiction during his career with Arsenal and England.
It is important to choose your brand carefully, Betfred and other brands like Playfrank seem to be conscious not to “normalise gambling for the addict” which Adams says is an ongoing issue for the sports industry.
Stobart – Poor choices
This was one of the more controversial sponsors of the Super League. Betfair also pitched to be sponsors in 2012 but were rejected by the RFL, who took on engineering and aviation company Stobart in a unique 3-year deal with the option to opt out after the first year.
After the first year, however, clubs and players criticised the RFL as Stobart withdrew their sponsorship for the league, leaving them without a sponsor for 2013. This was an unexpected decision from Stobart considering the rise in TV audiences of 45% and match day attendances reaching record highs. It remains unclear why Stobart decided to end their sponsorship.
