Major sports in Australia are facing the possibility of multi-million dollar revenue hits after Virgin Australia entered voluntary administration.
Virgin holds a lucrative sponsorship deal with the AFL, reportedly worth between $5 million and $10 million per year.
The airline is also in partnership with AFL clubs Carlton, Greater Western Sydney and Gold Coast.
Meanwhile, Virgin has been the naming rights sponsor of the Supercars championship since 2016.
The five-year deal with the motorsport category is set to finish at the end of 2020 and is reportedly worth $1.5 million a year, including discounted ticket rates and access to Virgin’s private VIP facility known as ‘The Club’ for senior management, team owners and all previous champions.
Virgin airlines is a partner to the Carlton Football Club and the Blues could lose up to $2 million now Getty
However, all the sponsorship agreements are now under the microscope with the extent of the financial damage to be determined by administrators and contractual obligations.
“We’ll work through every one of those contracts as part of administration,” Virgin CEO Paul Scurrah said on Tuesday.
“The AFL is a very important partner of ours and it’s important that we have those partners on the other…