Virgin Australia puts cloud over Supercars, AFL, arts sponsorships

Virgin has left tens of millions dollars in major sponsorship deals with the likes of the AFL and Supercars up in the air.

Virgin is the naming rights sponsor of the Supercars motor racing series. Picture: Rohan Kelly

Tens of millions of dollars worth of sponsorship deals, including a major contract potentially worth up to $10m annually with the AFL, are at risk after airline Virgin Australia entered voluntary administration on Tuesday.

The news comes at a time when many professional sports are under extreme financial pressure due to the affect of lockdown measures on match fixtures and broadcasts

Virgin’s AFL deal includes flying players, umpires, coaches and officials around the country to matches.

The airline also has a multi-million naming rights contract for the Supercars motor racing series, thought to be worth as much as $2m a year.

The airline’s new administrators Deloitte would be expected to examine whether maintaining the contracts make economic sense for the beleaguered carrier, which has been mostly grounded due to the COVID-19 pandemic.

Virgin is a major sponsor of both the AFL and GWS Giants.

Virgin also has sponsorship deals with AFL club Carlton – which lost millions of dollars in similar circumstances when Acquire Learning went into administration a few years ago – as well as the GWS Giants and Gold Coast Suns.

Carlton chief executive Cain Liddle has conceded its partnership with Virgin Australia would look starkly different in coming months.

Liddle said Carlton, which recently severed ties with the Northern Blues in a cost-cutting measure which led the historic VFL club Preston to close its doors, had a mutually beneficial arrangement with Virgin Australia.

The Carlton boss said that from an economic perspective, “it would be hard to think of an industry hit harder than the airlines”.

“In 2019 alone, our Carlton IN Business network delivered more than $5 million worth of business to Virgin Australia,” he said.

“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.

“This is an incredibly difficult time for all Virgin Australian staff and their families, and the thoughts and best wishes of the entire Carlton family are with them.”

The airline also has several sponsorships in the fashion industry and arts sector, including a naming rights deal for the Virgin Australia Melbourne Fashion Festival.

It also supports the Queensland Ballet, Belvoir Street Theatre and the Australian Chamber Orchestra.

Virgin also lists charities such as the Starlight Foundation, the Salvation Army Emergency Services and the Black Dog Institute on its website as among the dozens of organisations it supports.