https://www.smh.com.au/sport/nrl/wa...s-telstra-sabotage-claim-20200818-p55mve.html
Warriors free to extend Vodafone deal as NRL dismisses Telstra sabotage claim
Michael Chammas and
Zoe Samios
August 18, 2020 — 6.45pm
The NRL has dismissed claims major partner Telstra tried to sabotage telecom rival Vodafone's major sponsorship of the Warriors, with the governing body saying the club was warned multiple times over several years that its deal would need to cease at the end of this year.
It comes as Telstra on Tuesday granted the NRL an exemption that will allow the Warriors to continue its 22-year partnership with Vodafone and extend its $1 million-a-season sponsorship deal, which finishes at the end of this season, until 2022.
The Warriors are free to continue their 22-year association with Vodafone.CREDIT:GETTY
Under the terms of a $180 million, five-year naming rights extension negotiated in 2016, the NRL agreed that clubs wouldn't be allowed to have a sponsor that was a competitor of Telstra, but put in an exemption for pre-existing arrangements until their contract expiry.
Interim chief executive Andrew Abdo, who was chief commercial officer when the deal with Telstra was struck, repeatedly told the Warriors they would not be able to renew the deal with Vodafone. However, Telstra was accused on Tuesday of undermining the Warriors and the code by demanding the Kiwi side drop Vodafone as their jersey sponsor, in retaliation to being sidelined from NRL broadcast negotiations in June, which
ultimately cost it the streaming rights beyond 2022.
But the NRL has since moved to repair the damage and has started discussions with Telstra about extending its naming rights deal beyond 2022. The code is adamant Telstra has the best interests of the game at heart and is not trying to undermine the sport in retaliation to being sidelined from negotiations.
"During this crisis, Telstra have been incredibly loyal and supportive partner of rugby league," Abdo told The Herald.
Interim NRL chief executive Andrew Abdo.CREDIT:NRL
"Their investment has been part of what's enabled us to keep playing and their commitment to the game has now been further evidenced by their willingness to continue to support the Warriors."
The NRL has been working with the Warriors for a number of weeks to try and find a solution to its sponsorship dilemma such as allowing the Warriors to have Vodafone on the front of jersey for games played in New Zealand.
A Vodafone spokesperson said on Tuesday that the alternatives were not suitable.
"We understand NRL have offered a diluted non-naming partnership option to the Warriors as an alternative, but naming rights has always been the primary reason for our 22 year-long partnership," the spokesperson said.
“While we are looking at our options this means unfortunately, and very reluctantly, Vodafone NZ will most likely conclude its 22 year sponsorship of the Warriors at the end of the current season. We know this is incredibly disappointing for Warriors fans, as it is for Vodafone NZ."
Telstra contacted the governing body on Tuesday and volunteered to provide an exemption that would allow the Warriors to continue its existing arrangement with Vodafone for the next two years. It's unclear if Vodafone will extend.
"Our sporting clubs are feeling the pinch right now and many, like the Warriors, have stepped up to support their fans and the game," a Telstra spokesperson said. "While our naming rights sponsorship is a big investment from us in the game and should be protected in the long term, now is not the time to be taking money out of the sport.
"Just as we’ve extended our sponsorships that were due to expire for 12 months to support our partners, the Warriors have our support to extend their existing sponsorship too."
