Opinion

The Aftermath of the Brand Essendon bombshell

tom healeyIn this guest post, Tom Healey of sports marketing agency Octagon assesses the damage for sponsors of the Essendon doping scandal.

To have been a fly on the wall inside AFL house on Wednesday evening.

Twenty four hours on from the closure of negotiations between the AFL and the Essendon Football Club, the key players were keen to emphasise that their energy will be invested in the future, rather than the past.

With this in mind, let’s take a close look at what the future holds for the respective brands involved…

Brand AFL

Critics were quick to condemn the key powerbrokers within the governing body for distancing themselves from the scandal in the early days and highlighted a certain ‘aloofness’ at AFL HQ.

In hindsight, whilst the AFL might have tackled the issue more proactively, the timing of this final settlement is profound. The AFL has drawn a distinct line in the sand and the sport can now enter its showpiece period (and commercial focal point for league sponsors), the AFL Finals Series, without a black cloud above.

Most importantly, from this point on, the 2013 season will be judged by the contest on the field, rather that the shady conduct behind closed doors. You can almost hear the sigh of relief from administrators, sponsors and fans alike.

Verdict: The AFL brand has proven to be as resilient as any in the county and it will move on. Generations of goodwill earned between the league, key partners and fans, built on the back of a fantastic product, innovative partnership offerings and sound management, will ensure the AFL continues to prosper. Were it not for this stored goodwill, the outcome may have been significantly different and I dare say other codes may not have emerged as well under the same circumstances.

Brand Essendon

The Essendon Football Club brand appears to have emerged from this soap opera in better shape than one might have anticipated six months ago. As defiance gave way to genuine contrition, the club has stood tall in the face of great adversity.

The true impact of the affair will become more apparent in the coming months as key partners respond, yet to date their major sponsors are standing alongside the team. Kia’s lucrative deal with the club extends until 2016 and is understood to include clauses regarding banned drugs, whilst the relationship with True Value Solar is scheduled to end in October, as do many smaller commercial relationships. Whilst they have had an exit option, there is value in loyalty. Fans look to sponsors even more in the tough times to see how this loyalty is placed. Essendon’s ‘self-reporting’ of their misconduct has enabled them to take the moral high ground in certain areas and as a result helps their sponsors demonstrate their loyalty.

Verdict: Sponsors have kept quiet to date so the damage to the Essendon Football Club brand is yet to be fully realised. This has the potential to be a tale of redemption – a tale that savvy existing sponsors can be a positive key part of. However the heavy sanctions and subsequent performances may impact the club’s commercial appeal for new sponsors in 2014 and beyond.

Brand James Hird

As the central face in the saga, the impact on the James Hird brand promises to be the most compelling story of all. Hird boldly denied any inappropriate conduct and has shown a resilient attitude under immense pressure. The club has offered their full support, via a contract extension effective after his ban – a huge endorsement. All this considered, it is unlikely that Hird’s reputation and personal brand have emerged unscathed. Fairly or not, there was untoward conduct and the buck stops with the coach.

Verdict: Hird will return to the fold in 12 months as the head coach of the club, but his personal brand will be damaged. Regardless of the sanctions, fans will feel some level of betrayal by this episode. Trust is a crucial element in any endorsement and trust is a very fragile commodity.

Conclusion:

Whilst the Australian Sports Anti-Doping Authority investigation is ongoing and may yet yield further sanctions, the official announcement by the AFL commission on Wednesday 27 was the end of a chapter. The longer term impacts on the key brands involved is difficult to predict, but as we all know Australian sport is a fickle beast and a triumphant win this weekend will go a long way to closing the book completely.

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