Vodafone pulls plug on Waikato sponsorship

The Waikato Rugby Union has taken a major financial hit.

Waikato's front-of-jersey sponsor Vodafone has ended a lucrative sponsorship deal with the union.

Vodafone pulled the plug after six years' involvement with Waikato, deciding to consolidate its activities in 2010.

The news comes as a big blow to the union, whose Air New Zealand Cup side have not made the semifinals in the past three seasons after winning the national provincial championship in 2006.

Vodafone will continue to sponsor the Chiefs in the Super 14, with two years remaining on that three-year deal, and also has partnerships in the region with the Waikato/Bay of Plenty Magic netball team and Team Vodafone at the Hamilton 400 V8 Supercars.

Waikato Rugby Union (WRU) marketing manager Pat Mellsop said the decision by Vodafone was disappointing but he understood it needed to cut back.

"They've changed their sponsorship levels and direction and something's got to be cut and sadly we were part of that cut this year," he said.

Mellsop said the amount of money that Vodafone was bringing into the union was confidential, but indicated its support was a major loss in many respects.

"Obviously they're the front of our jersey so they're a very significant sponsor, so it's something that we're sad about and we're disappointed about but we recognise that's what happens in the world and we've just got to get out there and find a replacement."

Vodafone will work with the WRU to assist in finding a new sponsor and will continue to support the union by providing the free text alerts service for mooloo fans.

Mellsop said the union was already exploring new possibilities and it would take cost-cutting measures where necessary.

"We've got a number of different people that we're talking to," he said.

"We have other options and parties but it's a tough market so it's not a quick process.

"We'll be looking for a good partner that wants to be part of NPC rugby and Waikato rugby and show their faith."

Vodafone head of sponsorship Richard Howarth said the decision to part ways with Waikato was not easy, but every year the company reviewed its sponsorships and looked at its overall portfolio, and it was keen to consolidate in order to be more effective in delivering benefits and quality experiences to their customers, and fans of sport and music.

Mellsop believed the split was not due to a lack of on-field performances and also said it was not an unusual situation for the Chiefs and Waikato to have conflicting sponsors because they were stand-alone organisations.

- © Fairfax NZ News