When industry fund Hostplus signed on to become the major sponsor of National Rugby League team Melbourne Storm in 2006 it was deemed to be a bold and innovative marketing move.
"The partnership is significant for many reasons, but most importantly it provides Hostplus with an opportunity for existing and potential members to become associated with the brand through sport - one of the most salient forms of entertainment among core membership," Hostplus chairman Graham Duff said at the time.
But with the multitude of stories in the media about player bad behaviour and the recent arrest of, and ultimate dropping of assault charges against, star Storm player Greg Inglis, Hostplus's foray into sports sponsorship is starting to look a little shaky.
According to Evolution Media managing director Marcus Field, moving into sports sponsorship definitely had the potential to tarnish a superannuation fund's brand.
"It comes down to how the sponsee handles the scandal and it's a bit of a tough one with the Storm situation," Field said.
He told Investor Weekly the issue was often more complicated for super funds, as opposed to other types of organisations, because they had the added challenge of justifying the use of members' funds.
"It's a question of whether or not you involve your member base in a discussion about sponsorship," he said.
Hostplus should now consider using its sponsorship of the Storm to build awareness of alcohol abuse and violence, he said.
"The sponsorship could bring about a growth of understanding of the darker elements of the game," he said.
And for the moment, Hostplus is sticking with the Storm. Fund chief executive David Elia said he was satisfied with the club's handling of the incident.
"The fund went into the arrangement with its eyes open and has a contingency plan in place for such incidents," Elia told Investor Weekly.
"With anything there is a risk and a reward and we were aware of this when we entered into it."
However, the Storm's other main sponsor, the industry fund-backed Member's Equity Bank (ME), is not so sure.
In an interview with Australian Associated Press around the time the scandal broke, ME corporate affairs manager Tony Beck said the bank was "concerned with the news that a Melbourne Storm player had been charged by the police".
"ME Bank has requested from Melbourne Storm Rugby League Club a full report of the incident once all facts and investigations have been completed. ME Bank will monitor the incident and make a full review of the sponsorship," Beck said.
There has not been any follow-up comment as yet, however, Storm chief executive Brian Waldron said at the beginning of August that all sponsors would stick with the club.
Despite the scandals, Field said that for now it seemed super funds looking for ways to increase brand visibility and expand their member base would keep exploring marketing moves such as sport sponsorships.
In February, it was revealed Hostplus would be the backer of the 17th Australian Football League team to be based on the Gold Coast and last year the fund signed on Collingwood Football Club's then skipper Nathan Buckley to act as the fund's ambassador.
"Sport sponsorship can assist to make super a more day-to-day topic in people's lives. It can help with penetration into new markets and is a great way of involving the brand at a community level," Field said.
"It can be a powerful device for acquisition and as a driver to achieve scale, so in this sense it can be defended."
