Monday , August 3 2020
Breaking News
Home / Sport / FFA suffers $6m hit after losing major A-League sponsor Hyundai

FFA suffers $6m hit after losing major A-League sponsor Hyundai

“Football Federation Australia has enjoyed a great, whole of game partnership with Hyundai over the past 15 years. FFA remains in continued commercial discussions with the company regarding their long and significant commitment to the game from the grassroots to elite levels. As these discussions remain ongoing, FFA cannot provide specific comment,” an FFA spokesperson said.

“However, despite the impact of COVID-19, FFA can confirm that it is in discussions with numerous commercial partners – existing and prospective – about supporting the re-emergence of football at the professional and grassroots levels, and has been buoyed by the positive sentiment in the market.”

Who that will be remains to be seen, however Hyundai will continue its support through until the end of the season, despite its contract officially ending on June 30. Sources suggest FFA and Hyundai have agreed to a short-term extension of the deal to cover the remainder of the delayed season, up until a likely grand final that is set to be held no later than August 30.

The value of Hyundai’s sponsorship of the A-League has risen to nearly $5m a year, with the car company tipping in another $1m to sponsor Australia’s national teams, contributing a total of $6m to FFA’s coffers, not including the provision of almost 80 cars each year to the FFA and A-League clubs. It is the FFA’s second-most valuable corporate partnership, after their broadcast deal with Foxtel.

While COVID-19 has caused a financial crisis for several industries, Hyundai’s decision not to renew its sponsorship was made before it brought businesses to a standstill in Australia. A-League clubs were warned in February not to design jerseys with the logo of Hyundai due to uncertainty about the future of the partnership.

Public interest in the A-League has dropped significantly during the past two years while the motor vehicle industry was experiencing poor financial results well before the pandemic struck. The impending loss of Hyundai follows the departure of three other key FFA sponsors in the past 12 months.

Loading

German supermarket giant Aldi was the naming-rights sponsor of Australia’s junior football program, Miniroos, but chose not to renew its deal beyond its expiration in December 2019. The Socceroos are without a major partner after Caltex did not renew its sponsorship, while NAB bank ended its long-term sponsorship of FFA and the A-League last year.

NAB and Caltex had close ties with two former FFA administrators. Former NAB executive Joseph Healy and Caltex chief financial officer Simon Hepworth served on the FFA board lead by former chairman Steven Lowy.

About admin

Check Also

‘He’s given us his word’: Tigers probe Maguire over Cowboys rumours

“From our discussions with Michael, he has assured us that he won’t be tendering any …