HostPlus join ME Bank in deserting Storm
MELBOURNE Storm major sponsor Host Plus has joined Member's Equity Bank in a mass exodus from the club in the wake of revelations of massive salary cap rorting.
The two major sponsors' names were removed from the Melbourne Storm website within minutes of the decision by Host Plus CEO David Elia to scrap the three-year agreement with immediate effect.
ME Bank also joined sports fashion company Skins today in saying it was ending its sponsorship of the team.
Mr Elia described the relationship as untenable.
Caravan company Jayco and car maker Suzuki will assume the position of the club's major sponsors from this weekend.
The swift departure the club's main sponsors presents the real prospect that the team could fold, as conceded by club chairman Rob Moodie this morning.
Mr Moodie, who says he was unaware of the rorting but has nonetheless offered his resignation, said: “Some (Storm employees) will want to walk, some fans will want to walk.
“Some sponsors will obviously want to move on. We understand that.”
ME Bank was seeking urgent meetings with Storm management last night, but wasted no time this morning in deciding to end the $1 million-plus sponsorship that was to run until the end of next season.
Skins was also forced into action by the revelations, with the company running an advertising campaign using the tagline “cheat legal” that suggested using the product was a way to cheat legally rather than using drugs or taking secret payments.
ME Bank joined the Storm last season on the back of the success super fund Host Plus had had sponsoring the team.
ME Bank chief executive Jamie McPhee said they were extremely disappointed to discover the Storm had rorted the salary cap by concealing $1.7 million worth of player payments over a five-year period.
“As an organisation ME Bank believes in the principles of strong governance, transparency, integrity, and fairness and we seek to ensure that all of our corporate and community partnerships uphold these same values,” Mr McPhee said.
Other sponsors were assessing their options today, with fashion company Kooga saying it would make a decision by this afternoon whether to dump the club.
Car maker Suzuki said it would await meetings with Storm management next week before acting, but said it had enjoyed a good relationship with the club over the last three years.
