Powered by MOMENTUM MEDIA
lawyers weekly logo
Advertisement
News
15 July 2025 by Miranda Brownlee

HUB24 solidifies position as market leader with record net inflows

Record net inflows of $19.8 billion over the financial year has further strengthened HUB24’s position in the platform space. Wealth platform HUB24 ...
icon

Hostplus rebounds from prior year’s defensive stance

Hostplus’ MySuper Balanced option delivered significantly stronger returns in 2024–25, bouncing back from the previous ...

icon

Global X tips bitcoin to hit US$200k soon as US embraces ‘Crypto Week’

Achieving an all-time high this week and showing no signs of slowing, Global X predicts bitcoin could climb as high as ...

icon

Tariff uncertainty and global dispersion create alpha opportunities, says BlackRock

While it remains overweight US stocks, BlackRock has acknowledged more sharp near-term market moves are likely

icon

US still stands out as a global investment powerhouse, says MLC CIO

The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief ...

icon

Metrics limits exposure to cyclical businesses amid trade turmoil

Lower interest rates and increased economic activity are expected to support strong credit quality in the near term but ...

VIEW ALL

In the eye of the sponsorship storm

  •  
By Alice Uribe
  •  
6 minute read

The Melbourne Storm salary cap scandal has thrown up questions for super fund marketing campaigns.

The Melbourne Storm jerseys looked a lot barer when the players ran out on to the field on Sunday night in the Anzac Day rugby league match against the Auckland Warriors.

Missing was the branding of its two major sponsors, ME Bank on the front and Hostplus on the back, both of whom terminated sponsorship after last week's salary cap scandal.

In its place was the logo of caravan provider Jayco, which has so far supported the beleaguered team despite revelations that an extra $1.7 million had been distributed to players over a five-year period.

But the industry fund-backed ME Bank and hospitality industry fund Hostplus were no longer willing to support a team that was struggling for survival after being stripped of two premierships, three minor premierships and all competition points it had gained this year.

 
 

The NRL team would also be forced to pay a $500,000 fine and would need to repay $1.1 million in prize money.

To say the major sponsors were not amused is an understatement after they reportedly pulled more than $2 million in sponsorship dollars.

ME Bank, sponsors since December 2008, was the first to withdraw its support, saying in a statement that it was "disappointed" and "saddened" by the events.

"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," ME Bank chief executive Jamie McPhee said.

Hostplus chief executive David Elia expressed similar emotions, saying the sponsorship was untenable due to the conduct of the Storm.

"Hostplus has at its core a commitment to the highest standards of governance. We believe in rigid accountability and continuous transparency - and the revelations about the actions of some members of the Melbourne Storm management contradict everything we believe in," Elia said.

"We are shocked and devastated by these revelations, and we feel for the many people who are now affected by the actions of some individuals."

Marketing firm for the financial services industry, Endgame Communications, recently published some research on trust and how it can be eroded and built up - it may offer some insight into super funds caught up in marketing campaigns gone awry.

Endgame Communications managing director Sally Wells said while it was common for financial brands to align with sports teams via sponsorships, it can present a risk to the sponsoring brand.

Wells suggested ME Bank and Hostplus could mitigate potential damage by engaging with their members and starting a two-way conversation.

"Giving members a channel through which to voice their support or concern will go a long way to rebuilding any damage that may have been inflicted," she said.

However, Wells said recent consumer research has shown that transparency and following through on promises are far more significant factors in members retaining trust in a brand than the existence of bad press.

"Financial services brands should not throw the baby out with the bathwater - there can be great value in sports sponsorships, and if the lines of communications are open with members and investors, the risk of bad press can be mitigated," she said.

And it certainly seems that not all of the Storm's sponsors have distanced themselves from the controversy. According to media reports, Harvey Norman chief Gerry Harvey said the retailer would not be changing any of its sponsorship arrangements.

And while fourth-tier sponsor Skins had withdrawn its support, Suzuki had been upgraded in the sponsors list along with Jayco.

"The underlying culture is very good, it's just disappointing a few individuals have created this situation," Suzuki Australia general manager Tony Devers said.

Melbourne Storm fans were also standing strong over the weekend, with 23,906 turning up to Etihad Stadium on Sunday.

Despite the game being worthless as far as a position on the leader board was concerned, a banner hung over the entrance of the players' tunnel said it all.

"No Hostplus. No Skins. No ME [Bank]. No Worries. We R Here," it read.

So while sponsors such as ME Bank and Hostplus have valid reasons for terminating sponsorship, the fans seem to be staying put.