David Warner loses LG sponsorship amid ball-tampering drama

The ball-tampering scandal claims the first of what could be many sponsorship victims, as David Warner is cut loose.

LG has ended its sponsorship of David Warner. Picture: AP

Australian cricket’s ball tampering scandal has claimed its first of what could be multiple sponsorship victims, with LG ending its partnership with David Warner over the shocking events of last weekend, stating that it would only “work with ambassadors that share our core values”.

An LG spokeswoman said this afternoon that the company would not renew the partnership.

“LG’s current sponsorship of David Warner is in the final weeks and in light of recent events, we have decided not to renew our partnership,” she said.

“LG Australia will always look to work with ambassadors that share our core brand values and we take these relationships incredibly seriously to ensure we put our customers, employees and stakeholders first.”

Warner had already lost another personal sponsor, with Nestle’s Milo leaving its partnership with both the former Australian vice-captain personally and with Cricket Australia as a whole in recent months.

A Nestle spokeswoman has told The Australian: “We are moving in a different direction.

More sponsorship casualties are likely for the sport and its key players like Warner and deposed captain Steve Smith. LG’s decision has come amid a sponsor outcry over the events of the weekend, amid suggestions Cricket Australia has been working around the clock behind the scenes to ensure that sponsors do not depart the sport by invoking “disrepute” clauses. Sponsors have told The Australian they have been personally contacted by Cricket Australia boss James Sutherland.

Major cricket sponsor Qantas has been particularly strong in its public comments.

Qantas CEO Alan Joyce said at a function in London on Monday night that Cricket Australia needed to “do the right thing” and make “a statement to the rest of the world’’ over punishment for the ball tampering scandal.

In saying he was “extremely disappointed” about the scandal, Mr Joyce added: “I came to Australia 22 years ago Australia, they know the significance of a fair go, being sportsmen and sportsmanlike. It (the ball tampering scandal) has damaged our reputation worldwide.’’

He added: “We need Cricket Australia to make a statement that this is not acceptable because the rest of the world figures that’s the case.’’

Several other sponsors have issued strong public statements

The major sponsor of the summer test series, Magellan Financial Group, appears to be furious, with its boss Hamish Douglass describing the cheating by the Australian team as “abhorrent”.

Several other sponsors, including Accenture, Commonwealth Bank, Toyota and XXXX Gold, have all made strong statements about the incident.

Accenture noted that the incident was contrary to “our strong culture of ethics and compliance”.

Meanwhile, many believe Cricket Australia will impose harsh penalties to both preserve its reputation among corporates and to save the value of its media rights that are currently under negotiation. Media analyst Greg Fraser said Cricket Australia “may use Smith and David Warner as sacrificial lambs to save the sport’s reputation and resurrect the cricket broadcasting rights negotiations”.