Virgin Australia announced on Tuesday they were entering voluntary administration as a result of the COVID-19 (Coronavirus) global pandemic, putting the airlines major partnership deals at risk.
Virgin has very lucrative major sponsorship deals with the AFL and Supercars, along with a host of AFL clubs including Carlton, Greater Western sydney, and gold coast.
With Virgin entering voluntary administration, all sponsorship agreements are now under the microscope with the extent of the financial damage set to be determined by administrators and contractual obligations.
Depending on the findings of administrators, the AFL could miss out on a reported $5-10 million per year and Supercars could miss out on a reported $1.5 million this year as they were in the final year of their naming rights sponsorship with the airline.
Virgin Australia CEO, Paul Scurrah, said the organisation’s sport sponsorships will be a large focus of the administration.
“We’ll work through every one of those contracts as part of administration,” Scurrah said.
“The AFL is a very important partner of ours and it’s important that we have those partners on the other side.
“I know that we have a lot of sponsorships as well in…