Leading consumer electronic brand LG, have torn up their sponsorship of the Cronulla Sharks in a move that will cost the disgraced club more than $1 Million dollars.
Choking from constant sex and drug allegations, the move by LG to dump their relationship with the NSW NRL Club could be the start of a mass exit by technology companies such as Telstra, Samsung and others say analysts. They also claim that the move will almost certainly result in the NRL having to prop up the struggling club in an effort to meet TV contract obligations.
In the past, LG have paraded Sharks players at media launches such as their Scarlet TV and Chocolate Phone roll out, but did not deem the consumer electronics trade important enough to issue them with a press release announcing the axing of their relationship with the Cronulla club who are wallowing with debts of over $12M.
LG’s Marketing Director David Brand said “We have had a successful association with rugby league and the Sharks but we no longer see the benefits of an ongoing sponsorship given the evolution of our brand,” said Brand.
“While the recent controversies around the NRL, and the Sharks in particular, were certainly a significant element in our decision, we also considered the direction of our company and where we want to take the LG brand.”
During the past week, Cronulla Sharks players and management have been accused of group sex romps, drug taking and payments to a former staff member who was hit in the face by a senior executive of the club.
More to follow.