June 3 – Optus, Australia’s second biggest telecommunications company, has made a strategic decision to withdraw from major sports sponsorships and will not be renewing sponsorship and digital content rights deals with Football Federation Australia (FFA).
Optus waived its exclusive negotiating period to renew its deal and formally informed the FFA of its decision to end the five-year relationship with the FFA late last week.
Optus head of brand Nathan Rosenberg said: “We have made the tough decision to not renew our sponsorship as FFA’s official telecommunications partner. Exiting the sponsorship with FFA was a tough call, but we need to invest in areas where our customers will directly receive the benefits.”
Favourites to pick up the new four-year digital rights agreement covering the FFA website and websites of the A-league clubs, are Telstra and Perform Media.
The decision to exit sporting sponsorships comes as Optus CEO has said the Australian telco sector “has gone backwards in the past five or six years – I don’t think any of us have covered ourselves in glory.”
The company has experienced declines in revenues and profits and now says it seeks to redeploy funds “into activities focusing on customer experience such as upgrading our branded retail stores and online presence.”
FFA boss David Gallop said “FFA accepts that the Optus business needs to adapt to meet its changing circumstances. At this juncture, we wish Optus well in embarking on a new strategic direction,”
“We thank the company for their contribution to making Australian football what it is today; a thriving sport with a huge following in mainstream Australian society.”
Contact the writer of this story at moc.l1734840046labto1734840046ofdlr1734840046owedi1734840046sni@r1734840046ebab.1734840046kram1734840046
