Major sponsor fails to pay up for Gold Coast SuperGP motor race 19/08/2009 |
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The State Government-run Gold Coast SuperGP motor race has crashed and been burned over a million-dollar naming rights sponsorship.
Just two months out from the race, organisers have been forced to terminate the deal after major sponsor Nitro failed to pay up. The race will still go on.
The debacle is expected to renew tensions between the Government and SuperGP chairman Terry Mackenroth, motor racing insiders say.
The former deputy premier, who has been caught up in the Government lobbying controversy, publicly endorsed the sponsorship deal with Nitro - an unknown, six-month-old Gold Coast energy drink manufacturer.
Eyebrows were raised earlier this year when Nitro, associated with embattled Olympic swimmer and former bankrupt Neil Brooks, was announced as the naming rights backer of the SuperGP (formerly the Gold Coast Indy).
The Indy had attracted multinational sponsors including Nikon and Honda but Mr Mackenroth was forced to deny organisers had settled for Nitro after struggling to find a new backer.
"We've had some great international naming rights sponsors in the past but it's great to have a Gold Coast company," he said at the Nitro naming rights announcement in March.
Yesterday, Sports Minister Phil Reeves told State Parliament the Nitro deal had collapsed after the company did not make payments to Gold Coast Motor Events Company - a partnership between the Government and promoter IMG.
Mr Reeves read a letter from SuperGP boss Greg Hooton who blamed the sponsorship collapse on "irreconcilable differences" between Nitro's shareholders, which include Mr Brooks and businessman Matt Nielsen.
Mr Hooton told The Courier-Mail he was "certainly embarrassed" but insisted proper background checks had been made on Nitro. He said the cost of the failed sponsorship would not be borne by taxpayers (who already contribute about $11 million a year to the race) but its underwriter IMG.
Organisers are now racing to remove Nitro signage.
Mr Hooton flagged possible legal action against Nitro but said it was still "full steam ahead" for the October race.
Opposition sport spokesman Jack Dempsey said the Government was presiding over a "wreck" after Mr Reeves assured Parliament just 12 days ago due diligence checks on Nitro had been done.
"Now he has told us that the sponsorship deal has crashed and burned before even getting to the starting grid," he said.
(Source: News.com.au)
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