It’s the end for Australia’s most controversial sports sponsorship

It’s the end for Australia’s most controversial sports sponsorship

One of the most controversial sponsorship deals in Australian sporting history, between an NRL club and a medicinal cannabis clinic, has ended.

The Dolphins are seeking a new sponsor for next season after severing ties with their existing partner, Alternaleaf. The firm – described on the website of its owner, Montu, as “Australia’s largest medical cannabis clinic” – is under the microscope for potentially breaching the Therapeutic Goods Act. While medicinal cannabis is legal in Australia, the TGA bans advertising of prescription medicine such as medicinal cannabis, or consultations for medical cannabis as part of a health service.

The Therapeutic Goods Administration (TGA) launched court proceedings against Montu in April, forcing the Dolphins to cover up the Alternaleaf branding on their jerseys. It led to farcical scenes for their round seven clash against Parramatta in Darwin when the white tape covering the logo – hastily applied after the TGA made the ruling the night before – came off most of the jerseys in the hot and humid conditions.

The Dolphins and Alternaleaf had planned to continue the partnership, but the club’s inability to promote the brand effectively forced the parties to part company.

The Dolphins taped over the sponsorship logo on their jerseys in the clash against the Eels in Darwin.Credit: Getty

“There was some noise around our partnership earlier this year, and we worked closely with Alternaleaf and the TGA to find a workable resolution,” Dolphins chief executive Terry Reader said.

“Given the challenges with the regulations, our partnership concluded. We still have a great relationship with Alternaleaf, and were circumstances to change, we would certainly be open to working with them again in the future.”

Cannabis products are banned by the World Anti-Doping Agency, although the Dolphins’ sponsorship is not related to medical treatment for its players.

“While our Alternaleaf partnership with the Dolphins is no longer active, we maintain a positive and ongoing relationship with them, and there remains motivation to pursue a partnership together in the future,” said Montu spokesperson and director of public affairs Kelly King.

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“We have the utmost respect for the Dolphins, have been proud to have been associated with the team and applaud their strong performance during the 2024 season.”

The Dolphins-Alternaleaf arrangement – which has provided the latter firm with publicity and brand awareness that money can’t buy – is one of the more bold and controversial in sports sponsorship. However, there are countless instances of clubs making headlines after entering into dubious commercial arrangements.

The weird and wonderful world of sports sponsorship

  • Ashley Madison, an online dating service encouraging extra-marital affairs, offered the then cash-strapped Cronulla Sharks a sponsorship deal worth $11 million over 10 years in 2014. Cronulla’s decision to knock it back proved a prudent one. The firm was hacked the following year, resulting in sensitive member data being publicly disseminated.
  • Greek football club Voukefala in 2012 entered into a sponsorship deal with Soula brothel, resulting in the local business being emblazoned on the players’ jerseys.
  • Baking company Bimbo has sponsored several soccer teams, resulting in the likes of Mexican side Club America and Major League Soccer’s Philadelphia Union having “Bimbo” plastered on their jerseys.
  • Player concerns about Hancock Prospecting’s record on Indigenous affairs cost Netball Australia a $15 million sponsorship in 2022.
  • Baseball Australia became the first national sporting organisation to ban alcohol sponsorship in 2019.
  • Australian cricket captain Pat Cummins declined to appear in Alinta energy advertisements due to concerns about climate change in 2022. Alinta announced it would end its four-year partnership with Cricket Australia in 2023 “due to a change in its brand strategy”. The firm ended its four-year partnership with Cricket Australia “due to a change in its brand strategy” shortly afterwards.
  • “Wet, Wet, Wet″⁣ was emblazoned on the jerseys of Clydebank FC in 2012 after the Scottish band sponsored their hometown football club.

The Cronulla Sharks avoided scandal when they knocked back an $11 million sponsorship proposal to partner with Ashley Madison, an online dating service encouraging extra-marital affairs, in 2014. Baseball Australia also cost itself a lucrative income stream when it became the first national sporting organisation to ban alcohol sponsorship in 2019.

There were twin local controversies in 2022: Australian cricket captain Pat Cummins pulled out of Alinta advertisements due to concerns over climate change; and Netball Australia lost $15 million due to player concerns about Hancock Prospecting’s record on Indigenous affairs.

Some of the stranger sponsorship arrangements include Greek football club Voukefala entering into a sponsorship agreement with a local brothel in 2012; soccer clubs wearing “Bimbo” on their jerseys after entering into a partnership with the baking company; and “Wet, Wet, Wet″⁣ being emblazoned on the jerseys of Clydebank FC in 2012 after the Scottish band sponsored their hometown football club.

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