Cronulla and the Sydney Roosters appear set to pay a heavy toll after having their names dragged through the mud as a result of the NRL cocaine scandal with a sponsor reportedly ripping up contracts worth $1 million.
Infinity Group Australia has told the clubs it is withdrawing its backing for both clubs, according to News Corp Australia.
While the financial services company did not return phone calls on Wednesday, they had removed mention of the Roosters and Sharks as well as photos of skipper Paul Gallen from their website on Wednesday afternoon.
Both clubs declined to comment.
The company appears to have withdrawn its sponsorship after Sharks chairman Damian Keogh, under-20s player Jesse Savage and Sydney Roosters star Shaun Kenny-Dowall were all arrested for cocaine possession.
The Sharks’ deal with Infinity for back-of-jersey sponsorship was reportedly worth $700,000 over two years while its deal with the Roosters was believed to be worth $300,000 over the same time period.
Keogh has stepped down from his role with the premiers after allegedly being caught in possession of a small resealable bag of the drug on Friday night at a Woolloomooloo pub.
Kenny-Dowall is set to face court later in the month after also being arrested with just under half a gram of the illicit substance last Friday in a Sydney CBD club.
Savage became the fifth rugby league player or official dragged into the scandal on Sunday morning when he was allegedly caught with 1.4 grams of cocaine at a Cronulla nightclub.
Alan
Guest
How many years did the $million in total contracts run for?
kk
Roar Pro
Would it be appropriate for a potential sponsor to have a clause inserted that in the event of any of the the club 's players or officials contravening the laws of the game regarding drugs that all sponsorship monies for that season must be repaid and in consequence those players and officials must repay any contract monies paid to them and forfeit monies yet to be earned.
steveng
Roar Rookie
Its about time that something hit the clubs in their pockets. Good move and the only more that the sponsors have left! They are the ones investing their hard earned money and these offending clowns couldn't give a custard tart about anything except themselves. Its about time that clubs and the NRL was hit in their pockets as these offences are going from bad to worst. And this lame excuse that 'Our society has a drug problem, not the NRL' is that far off the mark that it borders on ridiculous.
up in the north
Roar Rookie
It negates the argument that players are only hurting themselves.
Magnus M. Østergaard
Roar Guru
The writer probably also says the Melbourne Storms.
Squidward
Roar Rookie
Companies run their hands at a scandal so they can pull out of sponsorships. It's triple win. A. You don't have to pay anymore B. You come off as the moral good guy C. All the free advertising when you get the media coverage that's way more than on a jersey I bet companies sponsor Kyle and Jackie O hoping they can get front page when Kyle puts his foot in it and they can pull out
The Barry
Roar Guru
Good point and hard to argue. I don't want to trivialise this but see how the headline said "millions"
Magnus M. Østergaard
Roar Guru
And THAT kiddos is why if you think its good or bad, morally bankrupt or boys being boys, they shouldn't fo illegal drugs. If they choose to do so, they shouldn't get caught.