Brumbies hunt new sponsors
The ACT Brumbies are putting their jersey up for sale, ramping up an international search for a major sponsor to ensure the club avoids a financial black hole at the start of the Super Rugby season.
The club hopes to land a long-term deal worth more than $1million a season as chief executive Doug Edwards puts together a list of potential partners to start locking in the Brumbies' financial viability.
The Brumbies will announce a record loss in their annual report in December as rugby union fights to keep up with the NRL, AFL and the A-League in crowd numbers and television ratings.
The Brumbies believe they can attract the biggest sponsorship deal in the club's history, putting their jersey on the market and urging multinational companies to replace the University of Canberra.
It's understood the Brumbies' search for a partner has stalled recently, but the club is in talks with several companies about signing up for what they believe is "the cheapest jersey in Australian Super Rugby". The Brumbies were on the brink of disaster three years ago when Huawei reneged on a multimillion-dollar deal just two months before the start of the season.
But Edwards is confident the club will survive and hopes to finalise an agreement with a major backer next month.
"It's imperative we get a sponsor ... if you don't have one, you're running around wondering what will happen," Edwards said. "We can't finalise our budget until we know who our major sponsor is. Rugby has gone through tough times, but our membership and merchandise is up.
"The ACT Brumbies are an iconic brand with unvetted access to the community. We want to get involved in the community and that's a focus of Stephen Moore's, but we need a solid financial base."
The Brumbies believe Super Rugby's international format in Australia, New Zealand and South Africa gives their sponsors a marketing advantage over the NRL and AFL.
More than 580,000 fans tuned in to watch the Brumbies play the Crusaders in May with marketing company Repucom valuing the Brumbies' jersey exposure at $2.7 million during the season. Brumbies merchandise sales also increased 150 per cent in the past year.
Super Rugby's governing body SANZAR is negotiating a broadcast deal which has attracted major interest in Britain and more than 60 countries.
The Brumbies admitted previously they would be "in a real dire position" had they not sold their Griffith headquarters as the ARU slashed costs, leaving a $500,000 black hole in funding and an expected loss of more than $700,000 this year.
Edwards said his No.1 priority as chief executive was ensuring the Brumbies were in a strong financial position, but conceded the club faced lean times without a major backer.
"It's never easy to get a long-term sponsor. It's hard to turn around a big ship, but we're heading in the right direction," Edwards said.
"Hopefully whatever the broadcast deal is can get us back to where we were ... back to a good financial position.
"We're developing our budget for next year ... there will be some options to get us back to where we need to be. But there could be some tough times there until we find out on the broadcast deal."
The Brumbies and ARU chief executive Bill Pulver will meet with the ACT government in the coming weeks to discuss the club's community impact, financial position and to continue talks about Canberra hosting a Wallabies Test in the future.
The Brumbies and Canberra Raiders will also meet with government officials to brainstorm ways to improve Canberra Stadium following the decision to delay a new undercover venue in Civic until 2025.
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