Sponsors in sights of Folau’s legal team

Sponsors are likely to be dragged into the Israel Folau legal battle, which could last years.

Israel Folau with his barrister Stuart Wood QC. Picture: MATRIX

Several high-profile sponsors are now likely to be dragged into the Israel Folau legal battle, placing companies such as Qantas, Asics, Land Rover, Swisse and HSBC at the heart of a dispute that could last for years.

The former Wallaby’s legal team, led by Melbourne barrister Stuart Wood QC, is assessing what evidence it has to go after the sponsors for “inducing” Rugby Australia to scrap Folau’s $4 million.

The role of Qantas, Rugby Australia’s major sponsor, is understood to be under scrutiny, along with sportswear company Asics, which dumped Folau as its ambassador after he posted on social media that gay people, atheists, “fornicators” and other sinners would go to hell unless they repented.

Land Rover, Swisse and HSBC are also in the sights of Folau’s legal team.

Sponsors contacted by The Australian declined to comment on the prospect of being drawn into the legal fight.

But Qantas spokesman Luke Enright pointed to the most ­recent public statement by chief executive Alan Joyce, in which he dismissed as “outrageous” any suggestion that Qantas had pushed for Folau’s sacking.

MORE: Folau — His old rugby mates say they no longer recognise the new Israel Folau

Folau’s lawyers also declined to comment, but a senior source inside his camp — an entourage of preachers, the Australian Christian Lobby, lawyers and­ ­advisers — said the threat of being caught up in legal action could hang over sponsors “for years” following the collapse of settlement talks at the Fair Work Commission on Friday. Folau’s legal team is now preparin­g to shift the unlawful termination battle with Rugby Australia and NSW Rugby to the Federal Court.

“Israel’s lawyers have been contemplating whether to bring the sponsors into the case for some time, but no decision has to be made immediately because they can be pulled into this dispute­ at any time once we get into the Federal Court,” a Folau source said. “It’s probably going to be at least 18 months before the case even gets heard in the court and in the meantime all sorts of new evidence­ (on the sponsors) could come to light as new documents emerge in discovery skirmishes in court.”

Most unlawful termination disputes are settled before they get to Federal Court, largely due to the costs involved.

Sacked ABC managing director Michelle Guthrie walked away with $1.64 million in March after she finally settled with the broadcaster. That settlement ­followed six months of explosive revelations about turmoil inside the ABC, including Ms Guthrie’s claims of political interference by chairman Justin Milne, who was also forced to resign.

The major stumbling block for Rugby Australia and its sponsors is that the Folau camp has already clearly flagged it is prepared to punch on with the dispute — all the way to the High Court if necessary — in a bid to have the country’s first judicial determin­ation on the rights of individuals to express their religious beliefs.

Folau’s team has a legal war chest of $2.2m after the Aust­ralian Christian Lobby stepped in to help with fundraising efforts.

The ACL was so overwhelmed by donations that managing director Martyn Iles decided to put the fundraising on “pause” after just two days, promising to react­ivate it only “if or when it needed more money for legal fees”.

Lawyers contacted by The Australian warned that if Folau’s team decided to go after Rugby Australia’s sponsors, the legal bill would spiral into “stratospheric figures”. Being immersed in such a polarising dispute could also have serious, brand-damaging consequences for the companies involved.