AFL and Carlton at risk of losing millions due to Virgin Australia’s insolvency

The AFL and a trio of clubs are in the hands of Virgin Australia’s new buyer. And they stand to lose millions if their sponsorship deal goes pair shaped. But the Blues and the AFL have backed them in.

Virgin Australia is Carlton’s co-major sponsor. Picture: Getty

The AFL and a trio of its clubs will rely on new buyers for besieged airline Virgin to keep their combined sponsorships worth more than $10 million alive.

The league said it would continue to support major sponsor Virgin as accounting firm Deloittes attempts to find a new owner for an airline which employs 16,000 workers.

Multiple companies have expressed interest in a takeover, which could see the company’s sponsorships retained.

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Carlton is handed as much as $2 million by Virgin each year as a co-major partner with its ongoing sponsorship while the league’s deal with the airline is worth up to $10 million.

It is also the major partners of Greater Western Sydney and the airline partner of Gold Coast, with both clubs expressing their support for the company.

The AFL’s commercial general manager Kylie Rogers said Virgin had made clear to the league it would continue to operate its scheduled domestic and international flights.

Part of the league’s sponsorship with Virgin is the airline flying players and staff across the country.

“Virgin Australia are a long-term partner of the AFL and supporter of all things footy,” Rogers said.

“We will continue to work and support them through this challenging and unprecedented time.” Ms Rogers said.

“The team at Virgin Australia have taken our clubs, players, officials and fans to all parts of the world, and we can’t thank them enough for their continued dedication to our game.”

Virgin Australia is Carlton’s co-major sponsor. Picture: Getty

Virgin was unable to secure a bailout package from the Federal government in recent days after requesting a $1.4 billion support package given debts of $5 billion.

Voluntary administration is a step short of liquidation which would effectively see the company wound up, with the league hopeful the company can be reborn and continue its sponsorship of the league.

Carlton chief executive Cain Liddle said the Blues were keen to continue their relationship with Virgin.

“As a club, we will continue to offer our full support to Virgin Australia and their people, who have stood by our side for the past five years and through some very difficult periods for our football club,” Lidle said.

“Our partnership has been one of enormous mutual benefit. In 2019 alone, our Carlton IN Business network delivered more than $5m worth of business to Virgin Australia. Like our club, Virgin Australia will likely look quite different post COVID-19, but whilst they continue to fly Australian skies, they will always have the unequivocal support of our club.”

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Originally published as AFL and Carlton at risk of losing millions due to Virgin Australia’s insolvency