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Qantas end 30-year, multi-million dollar sponsorship deal with cash-strapped Wallabies

(Photo by Chris McGrath/Getty Images)

Qantas will pull about $20 million of sponsorships from Australian sports already taking big financial hits from the coronavirus pandemic.

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The airline will withdraw cash sponsorships of cricket, rugby, soccer and Olympics and Paralympics in Australia.

Qantas says cash sponsorships will end but the company will continue in-kind agreements such as commercial flights.

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The Breakdown | Episode 35

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The move is a particularly heavy blow for financially-stricken Rugby Australia.

Qantas had held naming rights for the Wallabies since 2004 and been a sponsor for three decades.

Qantas chief customer officer Stephanie Tully says the airline will save around $20m from the decision.

“In an environment where thousands of our people have lost jobs and thousands more are stood down while they wait for flying to restart, we can’t maintain these sponsorships in the way we have in the past,” Tully said on Wednesday.

“While we’re dealing with this crisis and its aftermath, the cash cost of our sponsorships has to be zero.”

Since the start of the COVID-19 crisis, Qantas has stood down more than 20,000 employees and announced up to 8500 jobs will go.

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In August, the airline group posted a $2.7 billion before-tax loss for the 2020 financial year and forecast revenue to fall by $10b next year.

Rugby Australia’s current broadcast deal is set to expire at the end of this year with the loss of Qantas’ estimated $5m sponsorship another blow to the code.

“While it is obviously disappointing … it is understandable given the world we are all now living in and the challenges we are all facing,” RA chief executive Rob Clarke said in a statement.

Qantas said its in-kind support of RA, Cricket Australia, Football Federation Australia, the Australian Olympic Committee and Paralympics Australia would continue for the next 12 months before being reviewed.

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The Qantas logo would continue on shirts of Australia’s cricketers with the airline expected to fly athletes to next year’s Tokyo Olympics and Paralympics.

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AllyOz 1 day ago
Does the next Wallabies coach have to be an Australian?

I will preface this comment by saying that I hope Joe Schmidt continues for as long as he can as I think he has done a tremendous job to date. He has, in some ways, made the job a little harder for himself by initially relying on domestic based players and never really going over the top with OS based players even when he relaxed his policy a little more. I really enjoy how the team are playing at the moment.


I think Les Kiss, because (1) he has a bit more international experience, (2) has previously coached with Schmidt and in the same setup as Schmidt, might provide the smoothest transition, though I am not sure that this necessarily needs to be the case.


I would say one thing though about OS versus local coaches. I have a preference for local coaches but not for the reason that people might suppose (certainly not for the reason OJohn will have opined - I haven't read all the way down but I think I can guess it).


Australia has produced coaches of international standing who have won World Cups and major trophies. Bob Dwyer, Rod Macqueen, Alan Jones, Michael Cheika and Eddie Jones. I would add John Connolly - though he never got the international success he was highly successful with Queensland against quality NZ opposition and I think you could argue, never really got the run at international level that others did (OJohn might agree with that bit). Some of those are controversial but they all achieved high level results. You can add to that a number of assistants who worked OS at a high level.


But what the lack of a clear Australian coach suggests to me is that we are no longer producing coaches of international quality through our systems. We have had some overseas based coaches in our system like Thorn and Wessels and Cron (though I would suggest Thorn was a unique case who played for Australia in one code and NZ in the other and saw himself as a both a NZer and a Queenslander having arrived here at around age 12). Cron was developed in the Australian system anyway, so I don't have a problem with where he was born.


But my point is that we used to have systems in Australia that produced world class coaches. The systems developed by Dick Marks, which adopted and adapted some of the best coaching training approaches at the time from around the world (Wales particularly) but focussed on training Australian coaches with the best available methods, in my mind (as someone who grew up and began coaching late in that era) was a key part of what produced the highly skilled players that we produced at the time and also that produced those world class coaches. I think it was slipping already by the time I did my Level II certificate in 2002 and I think Eddie Jones influence and the priorities of the executive, particularly John O'Neill, might have been the beginning of the end. But if we have good coaching development programmes at school and junior level that will feed through to representative level then we will have


I think this is the missing ingredient that both ourselves and, ironically, Wales (who gave us the bones of our coaching system that became world leading), is a poor coaching development system. Fix that and you start getting players developing basic skills better and earlier in their careers and this feeds through all the way through the system and it also means that, when coaching positions at all levels come up, there are people of quality to fill them, who feed through the system all the way to the top. We could be exporting more coaches to Japan and England and France and the UK and the USA, as we have done a bit in the past.


A lack of a third tier between SR and Club rugby might block this a little - but I am not sure that this alone is the reason - it does give people some opportunity though to be noticed and play a key role in developing that next generation of players coming through. And we have never been able to make the cost sustainable.


I don't think it matters that we have an OS coach as our head coach at the moment but I think it does tell us something about overall rugby ecosystem that, when a coaching appointment comes up, we don't have 3 or 4 high quality options ready to take over. The failure of our coaching development pathway is a key missing ingredient for me and one of the reasons our systems are failing.

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