Knights sponsors demand answers
BY JOSH LEESON, MARTIN DINNEEN AND BRETT KEEBLE
03 Mar, 2010 04:00 AM
THE Knights were in damage control yesterday as a backlash from angry sponsors over the Chris Houston drugs scandal added to the club's already perilous financial situation.
Beer sponsor Bluetongue is reviewing its $800,000-a-year deal, and long-term supporters NIB and EnergyAustralia have called on the club to show cause why they should not withdraw their financial backing.
Meanwhile, the Knights appeared to be at odds with naming-rights sponsor Coal & Allied over the status of their partnership.
Knights chairman Rob Tew was in Brisbane on Monday with Knights chief executive Steve Burraston to meet with Coal & Allied representatives to discuss the club's partnership with the mining giant.
Tew said Coal & Allied had agreed at that gathering to extend its financial partnership with the Knights until the end of next year, though he acknowledged that meeting took place before either party was aware of the charges against Houston.
"That meeting was about broader issues, about how they see their relationship with us, and the fact that they took their option up to the end of 2011, so it was very good," Tew said.
But Coal & Allied media manager Alison Smith disputed that assertion.
"There was no decision. I don't know where you're getting that from," she told The Herald.
The Knights have an accumulated debt of more than $2.5 million. Any loss of sponsorship revenue would have serious ramifications.
The Herald revealed in January that mining and racing magnate Nathan Tinkler, the man widely touted as a potential saviour of the Knights, secretly lent the club $500,000 more than a year ago, but that has not been repaid.
While sponsors were prepared to dismiss the previous drugs scandal involving former prop Danny Wicks as a one-off, there was growing disquiet yesterday over the latest allegations.
"Bluetongue is extremely disappointed by recent developments at the Newcastle Knights and is currently reviewing our sponsorship with the club," Bluetongue spokeswoman Alana Stack said.
NIB corporate affairs manager Matthew Neat said his organisation feared it could be tarnished by association with the Knights.
"As a major and long-standing sponsor of the Newcastle Knights, NIB is extremely disappointed about recent events involving serious allegations of drug trafficking by players," Neat said.
"We are concerned for the long-term integrity of the club and the potential, by association, for reputation damage to the NIB brand.
"We eagerly await evidence that the club has taken action to fix the situation and prevent any further reputation damage."
Stadium sponsor EnergyAustralia said Knights players were major role models in the community and the company wanted evidence the club was upholding its responsibilities.
"EnergyAustra lia appreciates that the Knights have introduced a strict code of conduct, drug-testing policies and procedures, and other policies dealing with unacceptable behaviour," EnergyAustralia said in a statement.
"We have asked the club to provide information that shows what has been done to ensure all Knights representatives are complying with these policies and procedures.
"We have also asked for documentation that shows steps taken to remind all Knights representatives of their obligations to the club, its members and sponsors, and the wider community.
"We will be closely monitoring the progress of these matters, and the club's response to the information requested by EnergyAustralia, before any decision is made on the future of our sponsorship."
Kim Brant, the CEO of jersey sponsor KooGa, said his company supported the Knights management team "at this time". Wests Group chief executive Phil Gardner was on annual leave and was unavailable for comment.
Tew said the Knights had been buoyed by the general support of all their major sponsors but conceded some were worried.
"The feedback, in general - there is concern but support for how we're managing it," he said.
"But I think it would be fair to say that all prudent sponsors would be monitoring the situation going forward, just as we are. We're very appreciative of our sponsors' positions to date."
Charities and community groups have come out in support of the club.
The manager of key charity partner Hunter Westpac Rescue Helicopter Service, Richard Jones, said the club was vital to fundraising for the service and players and management were always willing to help.
"There's never a time when we can't get access to the players," he said.
Knights media manager Stephen Mount said players expected to attend charity and community events.
"When the week is a bit quieter than normal they are asking for events to attend," he said.
In 2009 Knights players and officials gave their time to 26 junior clinics and 50 community events.
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