Harvey Norman terminates rugby sponsorship deal

afr.com:

Harvey Norman will not extend its multimillion-dollar sponsorship of Super Rugby Pacific, but chief executive Katie Page brushed off suggestions the decision was related to the abrupt departure of Rugby Australia’s former chairman Hamish McLennan.

Mr McLennan was pushed from his position as chairman of Rugby Australia at a board meeting late on Sunday night after six rugby union state member unions said they had no confidence in his leadership or direction.

His departure coincides with news that Harvey Norman, one of the major sponsors of the state-based competition, will not extend its partnership with the sport once it ends in December.

Super Rugby has lost major sponsor Harvey Norman. Getty

Ms Page told The Australian Financial Review the decision was simply a case of “bad timing”.

“[It has] nothing to do with Hamish,” she said. “The contract finishes in December. Unfortunate the timing.”

The end of the Harvey Norman deal is a major blow for Rugby Australia as it tries to address the fallout from ousting Mr McLennan, the exit of controversial coach Eddie Jones and a dire Rugby World Cup campaign.

While the terms of the Harvey Norman sponsorship deal are not public, it is known to be in the millions of dollars. Loss of that money ahead of the new Super Rugby season will only add to the financial pressure the game is under.

Rugby Australia is in the final stages of negotiating a new $80 million debt deal, but needs funding from sponsors and broadcasters to allow it to invest in development and grassroots. How much money comes from the Harvey Norman sponsorship is not public, but it is estimated to be in the millions of dollars.

A Rugby Australia spokesman said it was already in market searching for a replacement to