The national governing body, Cricket Australia (CA) has rejected a AUS$10 million deal proposed by Mcdonald’s in order to gain the naming rights to the T20 Big Bash League tournament.
Cricket Australia have instead chose to stick with the current right holders and Mcdonald’s market rivals KFC.
Long time and current sponsor KFC look likely to extend the deal which is said to be worth AUS$8 million a year. Since the creation of the Big Bash tournament KFC have been the sponsor and have created a strong relationship between the two parties. Cricket Australia decided to turn down the larger offer of Mcdonald’s in favour of loyalty and the strong relationship they have with KFC.
A CA spokesman commented: “KFC is a longstanding partner of ours and loyalty is important to us during times like this.”
It was reported that Mcdonald’s had written to CA chairman Earl Eddings directly so they knew the board was fully aware an offer had been made. Mcdonald’s are frustrated with the situation as they had not been able to secure a meeting with the governing body; this was while CA extended their negotiation period with KFC and already agreed terms in-principle.
Mcdonald’s had sent a series of offers over the past 12 months, all being unsuccessful. One of the deals included funding being allocated to the US, who are being asked to have CA funds reduced by 25%.
Turning down extra millions from Mcdonald’s has raised questions with officials as more than 200 jobs have been lost this year and cuts within the organisation are being proposed. Since the resignation of chief executive Kevin Roberts in June, CA have been under the spotlight with Roberts heavily criticised for his handling of the Covid-19 pandemic. This was not the only departure at CA, with COO Scott Grant and head of public affairs Karina Keisler also leaving as a part of the new restructure.
The in-principle deal is said to be worth more than the previous deal, which is expiring, and was reported to have been worth around $6.5 million a year.
Author: Bradleigh Amis