Sanjeev Gupta’s GFG Whyalla troubles have ‘impact’ on Port Adelaide’s sponsorship

Port Adelaide’s chief executive has spoken out about the club’s major sponsor GFG Alliance as Sanjeev Gupta’s financial woes begin to “impact the club”.

Port Adelaide says the “current business challenges” of Sanjeev Gupta’s GFG are “impacting the club”, signalling the Power is owed money from its sponsor – like Whyalla steelworks contractors and the state government.

In a statement to The Advertiser on Monday, Port Adelaide chief executive officer Matthew Richardson said GFG was being supported through a “complex situation”.

It is understood GFG has failed to meet some sponsorship payments to Port, for which it is one of two “co-major partners”, but the amount is not known.

GFG’s Sanjeev Gupta and Port Adelaide Football Club chairman David Koch at the 2019 sponsorship announcement. Picture: Tom Huntley

“Port Adelaide is in regular contact with GFG regarding their current business challenges, which are impacting the club, in addition to many of their other business partners,” Mr Richardson said.

“GFG are an important partner to Port Adelaide, the rest of South Australia, and the community in Whyalla.

“The club continues to support them as they work through a complex situation.”

GFG was announced as a Port Adelaide joint major partner in 2019, when chairman David Koch said the club “could not be prouder of this partnership” with “an established global alliance” that had “invested significantly in Australia in recent times”.

GFG has been contacted for comment.

Premier Peter Malinauskas, who last week revealed the state government was owed “tens of millions of dollars” in royalties by GFG, on Sunday demanded the Whyalla steelworks operator pay creditors.

“There’s nothing wrong with enjoying your success, but it better not be at the expense of unpaid creditors. It’s time for Mr Gupta to not only demonstrate his ability to pay his creditors, but also invest in the steelworks future,” said the Premier, also a fervent Port Adelaide supporter.

Mr Malinauskas will be in Whyalla on Tuesday for meetings with the local council and other authorities, but none are expected with steelworks management.

Federal Trade Minister Don Farrell, who visited Whyalla with Mr Malinauskas in late January, said steelmaking was “key for the nation’s security and prosperity” and federal and state governments were working closely together to ensure the steelworks’ future.

“We know the people of Whyalla are hurting and we want them to have certainty, security and the bright future they deserve. We know that a domestic steel industry is vital to building a future made in Australia,” Senator Farrell told The Advertiser.

State Energy and Mining Minister Tom Koutsantonis on Monday said Australia had to be “very, very careful” about the consequences of the United States imposing tariffs on steel imports, indicating this posed the prospect of Whyalla steelworks being further imperilled by Chinese steel dumping in the Australian market.

“My concern is if there’s a 25 per cent tariff on Chinese steel being exported to the United States, what does that mean for Australian steel manufacturing with a lot more Chinese steel being available on the market potentially here in Australia,” he said.

Originally published as Sanjeev Gupta’s GFG Whyalla troubles have ‘impact’ on Port Adelaide’s sponsorship