With Virgin Australia having earlier this week entered voluntary administration, there are serious questions around some of the airline’s sponsorship deals.
Virgin Australia currently has a deal in place with the AFL worth around $10 million and a Supercars deal worth $2 million.
Such deals are partly built around discounted flights for athletes flying domestically to different fixtures.
Having appointed consultancy firm Deloitte as administrators, expenses such as these deals are expected to come under scrutiny.
Deloitte partner Vaughan Strawbridge yesterday told the media that while there are “no plans to make any redundancies”, there are “immediate steps” being taken towards securing the future of the business.
Virgin also has deals in place with AFL teams Carlton, GWS Giants and Gold Coast Suns.
Speaking with The Australian, Carlton CEO Cain Liddle admitted the existing deal is likely to change as a result of COVID-19.
“Like our club, Virgin Australia will likely look quite different post COVID-19, but whilst they continue to fly Australian skies, they will always have the unequivocal support of our club.
“This is an incredibly difficult time for all Virgin Australian staff and their families, and the thoughts and best wishes of the entire Carlton family are with them.”
Like the NRL, the AFL is expected to return in some form this year.
The competition was last month shut down until at least May 31, with plans for a restructured 17-round competition tipped to be announced this month.
Also on hold, the Supercars organisation has stated it is committed to completing the 2020 season, even if that runs into early 2021.
