NRL clubs to tackle sponsor in court

Skyhunter · NRL clubs to tackle sponsor in court

Roy Masters and Brad Walter
March 8, 2007
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A QUEENSLAND developer, who reneged on a previous NRL club sponsorship, has again walked out on three clubs, two of which are taking legal action.

QLD Group, a land and housing developer active in Queensland, has failed to honour sponsorships with the Cowboys, Bulldogs and Sea Eagles, after being dumped as a sleeve sponsor of Wests Tigers in 2001.

A director of QLD Group, George Cheihk, admitted defaulting on $120,000 to Wests Tigers for a sponsorship with his No Bull Fones.

Cheihk told the Herald in September 2005 that he was forced to renege on the Wests Tigers deal because his company went into liquidation, losing $40 million.

"We were officially broke and moved to Brisbane and have been lucky with the Queensland property market," he said at the time.

Now, however, it would appear QLD Group's interests in the Queensland property market have evaporated along with the Cowboys, Bulldogs and Sea Eagles sponsorships.

The Sea Eagles deal has fallen over, one year into a four-year agreement, with Manly chief executive, Grant Mayer, describing QLD Group as "asset rich and cash poor".

Manly also have a major sponsorship with Strathfield Car Radio, a company associated with Cheihk.

The Bulldogs and Cowboys are not as optimistic their payments will be received, with both pursuing legal action.

QLD Group was the Bulldogs sleeve and front of shorts sponsor last year, with an option for 2007, and the club is owed $120,000.

"The legal action is regarding a breach of the sponsorship contract, specifically the non-payment of money," Bulldogs CEO Malcolm Noad said when contacting media editors yesterday, seeking co-operation in not using file photos of his players wearing gear featuring the QLD logo.

Cowboys chief executive Peter Parr said: "I have no comment on QLD Group. They are no longer a sponsor of the club."

Cheihk, who said No Bull Fones had been a supply company for the collapsed One.Tel, last night told the Herald he intended paying the Bulldogs the money they were owed from last season.

"We know we owe the Bulldogs money and have proposed terms to pay them through a series of instalments," he said.

Cheihk said QLD Group was in dispute with the Cowboys over a $35,000 invoice after the company's logo was blacked out on the player's jersey in a game last year.

"Of the other clubs, the Broncos got paid, Manly got paid and the Cowboys got paid everything except $35,000 that we are refusing to pay."

QLD Group also had a sponsorship deal with the Broncos which lapsed last year after difficulties with payment, and was resolved only after game-day hospitality had been withdrawn.

Brisbane Broncos chief executive Bruno Cullen said his club acted on rumours in the financial community and opted to replace QLD Developments as a sleeve sponsor at the end of last season.

"They were under suspicion and that's the reason we didn't renew," Cullen said of the $350,000 sleeve sponsorship deal. "We replaced them with a car radio company for slightly more money.

"The rumours were around, and we didn't renew, but I must say they fulfilled their contract 100 per cent."

QLD Group was also a shorts sponsor of the Queensland State of Origin team in 2004-05. "We got paid both years but we had a lot of angst in getting paid and severed the relationship by mutual agreement," QRL general manager Ross Livermore.

NRL director, commercial and marketing, Paul Kind, conceded no independent checks were done of club sponsors' finances.

Wests Tigers chief executive Steve Noyce said the NRL should introduce an early warning system to protect clubs. "Anything which helps clubs to avoid defaulting sponsors should be considered by the NRL," he said. "We should have a system where we share this type of information."

Cheihk supported halfback Matt Orford's move to Manly last year, accepting a reported $450,000 a year over four years after rejecting offers of $550,000 from South Sydney and $540,000 to remain with Melbourne.

Cheihk and Orford's manager, George Mimis, are long-term associates.

Source
http://www.smh.com.au/news/league...7.html?page=fullpage#contentSwap1