A power play could be brewing for control of AFL sponsorships worth millions of dollars after former AFL chief executive Andrew Demetriou emerged as a share holder and board member on the little known sports sponsorship and communications company Bastion Group.
Demetriou stepped down from the most powerful position in Australian sport last week, but his emergence at Bastion, founded by former Adelaide Crows player Fergus Watt and with revenues of $10 million, has raised eyebrows across the industry.
Hamish McLachlan, the brother of Demetriou's replacement at the AFL, Gillon McLachlan, is also a director of the company.
The appointment of Demetriou to Bastion comes as rival company Gemba, which has helped engineer AFL sponsorships on behalf of clients such as Toyota and Telstra, faces major challenges.
Suspended Essendon coach James Hird remains a director of the Gemba and there has been discussion about the impact the ongoing controversy surrounding the football coach could have on the business.
Bastion, founded by Watt when he retired from the AFL after injury, works with a number of AFL clubs and also boasts a strong list of consumer clients including Crown Resorts, Jetstar, Blackmores, New Balance and Continental Tires.
However, Watt told AdNews that AFL opportunities were not the focus of Demetriou's appointment.
“To be honest any AFL dealings is a very small component of what we do,” Watt said.
“(chasing AFL business) is not something we have spoken about, it's not something that's of huge strategic importance to us, it's not about going in and farming the AFL.”
He also dismissed suggestions Bastion was aiming to take on Gemba at a time when the rival company was facing challenges.
“They are a good business and they are an established business,” he said. “To be honest we are just trying to prove ourselves.”
“We are a young business and we are growing, We are a long way from being a major player in any of our individual industries but he (Demetriou) just adds another piece to the puzzle and that is a nice thing to have.”
One industry specialist noted that Bastion was aligning in exactly the same space as Gemba.
“Gemba has been involved with the AFL and Toyota and Telstra. They do precisely what Bastion defines itself as - corporate sponsorship, communications, community relations and other kinds of promotions using assets of sports codes.”
The arrival of Demetriou on the board of Bastion, which includes strategic communications agency Undertow Media; sponsorship, events and activations experts Bastion EBA; government and community relations firm Bastion S+GO and boutique lifestyle management firm Mr Cornelius, has piqued the interest of industry observers.
“There has to be something bigger than that,” one well-connected Melbourne sports and media executive told AdNews. “What has been touted for Demetriou is an international role with an international sports code so for him to wind up at some communications group is a bit of a surprise.”
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