Netball Australia’s sponsorship crisis could balloon to $25 million

The $15 million sponsorship withdrawal by Hancock Prospecting could be the tip of the iceberg for Netball Australia, with fears other firms could follow suit.

Netball Australia is in financial peril and facing a potential $25m sponsorship crisis after a player union revolt led to Hancock Prospecting walking away from the sport, with the possibility more key sponsors could follow.

The company of mining billionaire Gina Rinehart pulled its $15m sponsorship on Saturday and there are fears it could balloon to a greater financial loss for the sport, as current and future sponsors may be put off from backing netball due to the players’ stance on issues.

“It could potentially turn into a $25m problem in the near future,” said one netball source. Netball Australia chief executive Kelly Ryan confirmed to The Australian that the survival of the sport, which has been $4m in the red, was again on tenterhooks and they will now have to consider cost cutting.

This comes after the organisation in June was issued with a “going concern” notice from its auditors after it had lost $7.2m in the past two years.

“Financially it puts the sport in a really compromised position again,” Ryan said. “We have done a power of work to get us into a more stable position. This money (from Hancock Prospecting) was going to help us accelerate our sport ­not only correct what has been out of balance.

Gina Rinehart.

“(It) was going to help us get ahead and now we’re back, literally looking through the budget as we speak.”

Members of the Australian side refused to wear the new sponsor’s logo on their uniforms in the series against England after objections from Indigenous player Donnell Wallam, citing discomfort over the company’s record on Indigenous issues.

There was optimism on Friday night that the dispute had been resolved after reports Wallam had agreed to wear a uniform with the sponsor’s logo but those hopes were dashed on Saturday when Hancock tore up its proposed four-year partnership “effective immediately”.

The company — and its majority-owned iron ore outfit Roy Hill ­ also withdrew from its deal with Super Netball premiers West Coast Fever. The company said it had been unaware of “the complexity of existing issues between Netball Australia and the players’ association”.

Hancock Prospecting also said it did not insist the logo be on the uniform.

It has been confirmed to The Australian that funding from Hancock Prospecting had also been committed to delivering netball programs in Indigenous communities as well as talent pathways for Indigenous players.

Netball Australia CEO Kelly Ryan (C). Picture: Bradley Kanaris/Getty

The Australian Diamonds in a statement on Saturday dismissed suggestions the dispute was over climate change.

“Reports of a protest on the part of the players, on environmental grounds and a split within the playing group are incorrect,” the players’ statement read. “The singular issue of concern to the players was one of support for our only Indigenous team member.”

Ryan revealed she had been trying via the Australian Netball Players’ Association (ANPA) to have “direct communication to the players”. She said despite months of overtures to the union powerbrokers, they had not provided a time to meet.

“We have been advocating for a while to make sure that we are able to have direct communication to players, that’s something that we want to have,” Ryan said. “I’ve been asking since July to meet with the players’ association board and have never been given an opportunity.

“So I am all for having direct conversations and our reality is we need to have direct conversations – the fact that they’re saying they weren’t consulted on this deal, and yet there is an email to them on the 29th of July that tells them how the deal is being structured. I mean, what else were we meant to do?”

Ryan did not rule out engaging with gambling companies in an effort to keep the sport afloat.

“I know everyone’s got an aversion to betting, but we are the only sport that doesn’t have an association with a betting agency and that already financially compromises us,” Ryan said. “Whether it’s right or wrong for the sport, we don’t know yet.”

Brian Burke was WA’s Labor premier in 1984 when Mrs Rinehart’s father, Lang Hancock, infamously proposed sterilising “half caste” Aboriginal people.

“He excited some people by occasionally expressing himself inappropriately on a range of controversial topics,” Mr Burke said on Sunday.

Mr Burke said he could not recall Mrs Rhinehart – who he believed was living in the US at the time – supporting any of her father’s “extreme views”.

“It is sad to see her criticised for the views her father expressed, and we are the only losers from the bullying that caused Mrs Rinehart to withdraw her sports sponsorship,” he said. “And that’s when, as has been repeatedly pointed out, we think it’s fine to accept sponsorship from gambling, alcohol and fast food.”

Additional reporting: Paige Taylor

CEO SAYS NETBALL CAN REPLACE HANCOCK MILLIONS

- Emma Greenwood

Netball Australia says it was shocked by the Hancock Prospecting’s call to end its partnership, believing all issues had been resolved just hours before they received news the deal was being ripped up.

But NA boss Kelly Ryan remains bullish her organisation is attractive to sponsors and a new partner will be found despite the troubles of the past few weeks.

“It’s a very difficult time, nothing that our sport’s faced before – and probably no other sport of this gravity, either,” she said.

“There were great intentions, but obviously it’s been really difficult for everybody to try and work together and find the appropriate resolutions.

“The sporting landscape has changed.”

Ryan said she was still unsure exactly what had changed from Friday night – when First Nations player Donnell Wallam agreed to wear the Hancock logo during the England series, triggering an agreement from all the Diamonds – to Saturday morning, when Hancock officials advised NA they were about to release a statement about their move to call off the partnership.

But perhaps the partner felt they still did not have the full faith of the players.

While Wallam was not part of the squad that completed its Constellation Cup series on the Gold Coast on Sunday night, the Diamonds did not take to the court in the dress containing the Hancock logo in any game against New Zealand, despite having agreed to do so.

The decision not to wear the new dress was made by NA officials.

Netball Australia CEO Kelly Ryan says she was shocked by Hancock Prospecting’s withdrawal of its sponsorship deal.

“There were too many unresolved issues and some additional obligations that the Players’ Association had placed on us, and there were just too many other unresolved matters,” Ryan said of the decision just two hours before the opening Test in Auckland to wear the old strip.

“For us, it wasn’t about launching it and then stopping, it was about taking the time to have all those conversations we needed up front and make sure we were all clear and all aligned before we launched (the new partnership).

“And we had agreed (by Friday) that that alignment would take place, and we thought we’d be in a good position ahead of the England series to then launch.

“All the conversations were centred around finding of solutions with all parties and that’s where the time was taken.”

It’s a tough gig to be the boss that “loses” a $15 million partnership – although technically it’s a prospective partnership that didn’t pan out as opposed to money in the bank that was withdrawn.

And while Ryan points to her record of forging new commercial partnerships and improving the dire position the sport was in just a few months ago, she knows that ultimately she answers to her board.

It seems full support may not be there, with reports that cabinet minister Bill Shorten has been approached by stakeholders in the game. News Corp has been told some have lost confidence in NA leaders.

Hancock Prospecting boss Gina Rinehart. Picture Gregg Porteous

Hancock’s statement made it clear divisions within the sport were at least partly responsible for the deal falling over.

“Hancock and Roy Hill Roy Hill were not made aware prior to the proposed partnership of the complexity of existing issues between Netball Australia and the Players Association,” the statement said.

But Ryan said there had been many conversations with players over the past week.

“I think that’s all that you can ask in these moments, that you come together and find solutions,” she said.

“We’ve had a lot of direct communication, which is fabulous and I have no doubt post this, we’ll sit down and go: ‘what have we learned and what do we want to do differently next time?’.

“That’s a real positive for us to take from this moment, too.”

She remains confident another partner will be found.

“I think netball is still an incredibly strong sport, it’s always had really great values, so it’s incredibly aligned with a lot of partners out there,” Ryan said.

“We’ll use this moment and we’ll learn from it without a doubt – we have to – and it will put us in a much better position to move forward.”

Originally published as Netball Australia’s sponsorship crisis could balloon to $25 million