Qantas will pull about $20 million of sponsorships from Australian sports already taking big financial hits from the coronavirus pandemic.
The airline will withdraw cash sponsorships of cricket, rugby, soccer and Olympics and Paralympics in Australia.
Qantas says cash sponsorships will end but the company will continue in-kind agreements such as commercial flights.
The move is a particularly heavy blow for financially-stricken Rugby Australia.
Qantas had held naming rights for the Wallabies since 2004 and been a sponsor for three decades.
Qantas chief customer officer Stephanie Tully says the airline will save around $20m from the decision.
“In an environment where thousands of our people have lost jobs and thousands more are stood down while they wait for flying to restart, we can’t maintain these sponsorships in the way we have in the past,” Tully said on Wednesday.
“While we’re dealing with this crisis and its aftermath, the cash cost of our sponsorships has to be zero.”
Since the start of the COVID-19 crisis, Qantas has stood down more than 20,000 employees and announced up to 8500 jobs will go.
In August, the airline group posted a $2.7 billion before-tax loss for the 2020 financial year and forecast revenue to fall by $10b next year.
Rugby Australia’s current broadcast deal is set to expire at the end of this year with the loss of Qantas’ estimated $5m sponsorship another blow to the code.
“While it is obviously disappointing … it is understandable given the world we are all now living in and the challenges we are all facing,” RA chief executive Rob Clarke said in a statement.
Qantas said its in-kind support of RA, Cricket Australia, Football Federation Australia, the Australian Olympic Committee and Paralympics Australia would continue for the next 12 months before being reviewed.
The Qantas logo would continue on shirts of Australia’s cricketers with the airline expected to fly athletes to next year’s Tokyo Olympics and Paralympics.
Gepetto
Roar Rookie
I was after a clip from Fr Ted - https://www.youtube.com/watch?v=vAuDDj4Erpk- but then I saw a statement from 'the bench' which reminded me that RA lost the legal battle against IF. I feel guilty about reopening this can of worms, but I am a bitter Reds supporter and this has been a bad week for me.
ScottD
Roar Guru
Actually thinking about it, given RA has just lost their major sponsor I can guarantee that RA would love to have FMG as a replacement major sponsor - so to that extent no matter what they say it is certainly wishful by RA
piru
Roar Rookie
Calm down Greg It's soccer
piru
Roar Rookie
Perhaps if Victoria could get its act together there'd at least be domestic flights
piru
Roar Rookie
He's always been free to return, provided he signed the agreement not to be a knob on social media. You'll recall he refused and decided to sue people instead
Double Agent
Guest
Rubbish. They make billions every year and have done for decades. Everyone knows that. And when Will Miller takes over as CEO that will be trillions not billions.
chris
Guest
Just ignore Johan's comments. He hates "association football" more than he dislikes Rugby. He's an AFL fan and gets his delights in sticking the boot in to other sports.
Walter Black
Guest
Terrible news indeed but hardly surprising, unless RA have been asleep at the wheel they shoul have been expecting this and getting out there to try and find a replacement. Supermarkets and Pharma are doing well just now and might tip in a few dollars. Outside of that, we have to accept that its will be belt tightening time for a few years. Unfortunately, we don't have $50m in H.O. costs to slash as the NRL has just done.
Walter Black
Guest
Very true but I cracked a bottle of bubbly after Brisbane got the NRL's wooden spoon tonight. Childish but magic.
Walter Black
Guest
Born and grew up in the north of England, I was force fed soccor at school even though I found the game about as exciting as watching the traffic lights change. Thought that soccor was the most boring game on the planet before I came to Australia and found AFL ........
Walter Black
Guest
He wouldn't want to, he is doing just fine at Les Cats
Try Hard
Guest
Not surprised
ScottD
Roar Guru
I can certainly see a few new clauses inserted into players new contracts after 2020
ScottD
Roar Guru
I can't believe I pushed that button!!
ScottD
Roar Guru
but Izzy told us it was coming ......
Train Without A Station
Roar Guru
Maybe wishful thinking in Perth where the rumour started... Oh wait. That’s what I said.
ForceFan
Roar Rookie
Thanks TWAS….perhaps you can point out where I said, or even implied that, it was wishful thinking by RA? It could be wishful thinking by 6PR. You don’t work for CNN or the US Democrats do you? They too are big on fake news.
Fox
Roar Guru
Well TWAS, I hear you can fly from Brisbane to the Gold Coast and with no quarantine either - no air hostess required as you will arrive at your destination after your second sip on a beer!
Micko
Roar Rookie
Absolutely I'd know SM & SVG Jacko. I don't follow the wallabies enough to know individual faces. Folau, Pocock & Hooper are the only recent guys I'd recognise. You can't forget Hooper's face with that eyes too close together thing. :laughing:
Micko
Roar Rookie
That's TWAS, not me mate! :silly: