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NRL vetoes Bulldogs sponsor
http://www.leaguehq.com.au/news/lhqn...222978010.html
Brad Walter and Glenn Jackson | April 10, 2009
THE Bulldogs have been told by the NRL that they cannot wear the name of the club's new major sponsor on their jerseys for Monday night's clash with South Sydney - and might have to scrap the $2 million deal altogether.
After believing their nine-month search for a new sponsor had ended when they announced a three-year deal with the Strathfield Group yesterday, the Bulldogs were informed that the arrangement could be in breach of a condition prohibiting clubs from entering into sponsorship agreements with rivals to the NRL's main backer, Telstra, which pays about $12m a season for naming rights to the competition.
Negotiations between the Bulldogs and the Strathfield Group had been ongoing since January but the NRL was not aware of the deal and last night advised the club to put the agreement on hold.
"There is certainly a problem at this point and certainly in the short term, we have told them it shouldn't go ahead," NRL marketing manager Paul Kind said. "There is a process and protocols in place but they haven't been followed and we only became aware of the sponsorship when the Bulldogs called a press conference.
"Therefore no approval had been granted in regards to the sponsorship and we have concerns that the company involved is in competition with Telstra."
Kind said the NRL had "a lot of sympathy" for the Bulldogs and had supported the club's efforts to improve its image but the league also had to protect the interests of Telstra.
There are also concerns about the links between the Strathfield Group and failed retailer Strathfield Car Radio, with chairman Vaz Hovanessian having performed the same role when the company went into administration last year.
"That's something that we want to understand more about because the old company was an Optus re-seller," Kind said. "We've made sure that as we've negotiated new deals we have opened up opportunities for the club but the one category the clubs can't sell into is telecommunications."
Coincidentally, the Bulldogs agreement with Strathfield Group contains a get-out clause insisted upon by the company so it could scrap the deal should players misbehave.
Bulldogs chief executive Todd Greenberg, who has acknowledged to the NRL that correct procedures were not followed before the club signed the deal, said the clause was "standard" over the past four or five seasons. Another club boss said it was "highly unusual" and another said the clauses were implemented after the Coffs Harbour scandal.
It is understood the clause allows the sponsor to pull out of a deal should it suffer "material loss" as a result of player misbehaviour. So while a scandal of the scale of the Coffs Harbour incident would be enough to end the relationship, minor alcohol-related incidents might not be.
Hovanessian laid down the law to Bulldogs players yesterday just minutes after the deal was announced.
"Every player will know that the type of contract we have signed with the Bulldogs requires their commitment to behaviour," he said.
http://www.leaguehq.com.au/news/lhqn...222978010.html
Brad Walter and Glenn Jackson | April 10, 2009
THE Bulldogs have been told by the NRL that they cannot wear the name of the club's new major sponsor on their jerseys for Monday night's clash with South Sydney - and might have to scrap the $2 million deal altogether.
After believing their nine-month search for a new sponsor had ended when they announced a three-year deal with the Strathfield Group yesterday, the Bulldogs were informed that the arrangement could be in breach of a condition prohibiting clubs from entering into sponsorship agreements with rivals to the NRL's main backer, Telstra, which pays about $12m a season for naming rights to the competition.
Negotiations between the Bulldogs and the Strathfield Group had been ongoing since January but the NRL was not aware of the deal and last night advised the club to put the agreement on hold.
"There is certainly a problem at this point and certainly in the short term, we have told them it shouldn't go ahead," NRL marketing manager Paul Kind said. "There is a process and protocols in place but they haven't been followed and we only became aware of the sponsorship when the Bulldogs called a press conference.
"Therefore no approval had been granted in regards to the sponsorship and we have concerns that the company involved is in competition with Telstra."
Kind said the NRL had "a lot of sympathy" for the Bulldogs and had supported the club's efforts to improve its image but the league also had to protect the interests of Telstra.
There are also concerns about the links between the Strathfield Group and failed retailer Strathfield Car Radio, with chairman Vaz Hovanessian having performed the same role when the company went into administration last year.
"That's something that we want to understand more about because the old company was an Optus re-seller," Kind said. "We've made sure that as we've negotiated new deals we have opened up opportunities for the club but the one category the clubs can't sell into is telecommunications."
Coincidentally, the Bulldogs agreement with Strathfield Group contains a get-out clause insisted upon by the company so it could scrap the deal should players misbehave.
Bulldogs chief executive Todd Greenberg, who has acknowledged to the NRL that correct procedures were not followed before the club signed the deal, said the clause was "standard" over the past four or five seasons. Another club boss said it was "highly unusual" and another said the clauses were implemented after the Coffs Harbour scandal.
It is understood the clause allows the sponsor to pull out of a deal should it suffer "material loss" as a result of player misbehaviour. So while a scandal of the scale of the Coffs Harbour incident would be enough to end the relationship, minor alcohol-related incidents might not be.
Hovanessian laid down the law to Bulldogs players yesterday just minutes after the deal was announced.
"Every player will know that the type of contract we have signed with the Bulldogs requires their commitment to behaviour," he said.
