1 00:00:00,040 --> 00:00:02,280 Speaker 1: As if New Zealand Rugby didn't need more trouble there, 2 00:00:02,320 --> 00:00:04,560 Speaker 1: right off to court after calling and the lawyers has 3 00:00:04,640 --> 00:00:07,680 Speaker 1: resulted in US and their sixty year sponsorship partner bailing 4 00:00:07,720 --> 00:00:10,440 Speaker 1: after only three it's a breach of contract, scrap. Simon 5 00:00:10,560 --> 00:00:13,080 Speaker 1: Porter is managing director of Halo Sport, which is rugby's 6 00:00:13,080 --> 00:00:16,680 Speaker 1: most influential player business. He's one of the sport's most 7 00:00:17,120 --> 00:00:20,600 Speaker 1: influential player agents. I hope I have an over soldier there, Simon. 8 00:00:20,640 --> 00:00:22,520 Speaker 1: Morning to you, good. 9 00:00:22,280 --> 00:00:25,040 Speaker 2: Morning, good morning. Now it's always humbling in Tesla. 10 00:00:25,360 --> 00:00:27,680 Speaker 1: Well that's good. Do you know what's happened here? I mean, 11 00:00:27,720 --> 00:00:30,320 Speaker 1: do you is there a lot of scuttle but behind 12 00:00:30,320 --> 00:00:32,160 Speaker 1: the scenes and we're all going, you know, oh yeah 13 00:00:32,440 --> 00:00:33,440 Speaker 1: we saw this coming or not? 14 00:00:34,520 --> 00:00:37,000 Speaker 2: No, not really. I think there were a few whispers 15 00:00:37,040 --> 00:00:39,280 Speaker 2: around the place last year sort of off the back 16 00:00:39,320 --> 00:00:44,680 Speaker 2: of reckless investment into Manchester United, but really don't know. 17 00:00:44,800 --> 00:00:47,000 Speaker 2: That's what would be quite interesting if it ever does 18 00:00:47,040 --> 00:00:49,440 Speaker 2: see the light of day in court with pleadings, et cetera, 19 00:00:49,560 --> 00:00:52,520 Speaker 2: to see what is behind it. But no, it sort 20 00:00:52,520 --> 00:00:53,680 Speaker 2: of came a little bit out of the. 21 00:00:53,680 --> 00:00:56,760 Speaker 1: Blue because the risk the union take is that in 22 00:00:56,880 --> 00:00:58,840 Speaker 1: the us have got a counter argument, which is we 23 00:00:58,840 --> 00:01:01,560 Speaker 1: were expecting as part of the contract ABC dn E 24 00:01:01,800 --> 00:01:02,760 Speaker 1: and none of that's happened. 25 00:01:02,800 --> 00:01:06,720 Speaker 2: Hence we've gone, yeah, that that is one way it 26 00:01:06,720 --> 00:01:09,040 Speaker 2: could be. Or they might just be backing themselves that 27 00:01:09,040 --> 00:01:10,680 Speaker 2: the All Blacks, being one of the biggest brands in 28 00:01:10,720 --> 00:01:13,479 Speaker 2: the world, can just replace them quite easily given what 29 00:01:13,720 --> 00:01:16,560 Speaker 2: there is to offer with space on the Jersey and 30 00:01:16,600 --> 00:01:19,120 Speaker 2: the training jusey, etcetera, and going yep, well we've broken 31 00:01:19,160 --> 00:01:21,280 Speaker 2: the contract, but you've now got a duty to mitigate 32 00:01:21,319 --> 00:01:24,840 Speaker 2: your loss and go and find a replacement for that hole, 33 00:01:24,920 --> 00:01:28,319 Speaker 2: and that they might just be backing themselves that New 34 00:01:28,440 --> 00:01:30,160 Speaker 2: Zealand can do that, But I think New Zealand have 35 00:01:30,200 --> 00:01:33,480 Speaker 2: to protect themselves by getting the proceedings in Really, so. 36 00:01:33,800 --> 00:01:35,320 Speaker 1: You think they're making the right move? 37 00:01:36,400 --> 00:01:39,280 Speaker 2: Who's that in New Zealand? Right? Yeah? Yeah, I just 38 00:01:39,319 --> 00:01:42,280 Speaker 2: don't think they've probably got another option. Look, and I'm 39 00:01:42,280 --> 00:01:44,839 Speaker 2: sure one thing, you know, scuttled up behind the scenes, 40 00:01:44,840 --> 00:01:48,280 Speaker 2: et cetera. Discussions would have been going like this will 41 00:01:48,320 --> 00:01:50,440 Speaker 2: be last resort, this isn't the first thing they'll do. 42 00:01:50,480 --> 00:01:52,200 Speaker 2: They would have been trying really hard to get in 43 00:01:52,560 --> 00:01:56,040 Speaker 2: across the line et cetera. And so I would have 44 00:01:56,040 --> 00:01:59,240 Speaker 2: thought to protect their position, they probably have to be 45 00:01:59,400 --> 00:02:01,960 Speaker 2: in the proceed needs to say hey, well we're actually serious, 46 00:02:02,080 --> 00:02:06,200 Speaker 2: and you know you've got a front with cash, even 47 00:02:06,240 --> 00:02:08,280 Speaker 2: if they are trying to find a replacement. I think, 48 00:02:08,320 --> 00:02:11,280 Speaker 2: you know, is a is a very rusty lawyer. I 49 00:02:11,280 --> 00:02:13,280 Speaker 2: think you probably just have to you know, you've got 50 00:02:13,280 --> 00:02:15,120 Speaker 2: to protect your position. Begin the proceedings in. 51 00:02:15,440 --> 00:02:18,120 Speaker 1: In what court would this be held and over what 52 00:02:18,160 --> 00:02:19,960 Speaker 1: time frame would it unfold? 53 00:02:20,800 --> 00:02:23,880 Speaker 2: Well, there'll be a jurisdiction clause in the contract, which, 54 00:02:23,960 --> 00:02:27,760 Speaker 2: given that New Zealand are based, when he's in a 55 00:02:27,840 --> 00:02:30,160 Speaker 2: Rugany's based obviously in New Zealand, I would have thought 56 00:02:30,160 --> 00:02:32,640 Speaker 2: it's probably in the High Court here in New Zealand. 57 00:02:33,000 --> 00:02:35,800 Speaker 1: Okay, it would be my guess, and presumably. 58 00:02:36,200 --> 00:02:39,040 Speaker 2: Insisted on an English clause for other world of law 59 00:02:39,120 --> 00:02:41,240 Speaker 2: for the contract. And I just don't actually know. 60 00:02:41,480 --> 00:02:43,440 Speaker 1: The interesting thing for me is that this is a 61 00:02:43,440 --> 00:02:45,800 Speaker 1: fifty five billion and when I say billion, I mean euros, 62 00:02:45,919 --> 00:02:49,160 Speaker 1: so it's one hundred billion dollar plus company. And they're claiming, 63 00:02:49,200 --> 00:02:51,760 Speaker 1: allegedly this morning that times are a bit tight in petrochemicals, 64 00:02:52,040 --> 00:02:54,440 Speaker 1: you know, six six, seven, eight, million dollars worth of 65 00:02:54,480 --> 00:02:57,880 Speaker 1: business is not falling it because I mean that's not 66 00:02:57,919 --> 00:03:00,000 Speaker 1: a reason is it to walk away from a contract? 67 00:03:01,480 --> 00:03:05,800 Speaker 2: No, something's happened there. Yeah, I don't know. I honestly 68 00:03:05,840 --> 00:03:08,840 Speaker 2: don't know. They could. Yeah, well, I mean they've got 69 00:03:09,440 --> 00:03:13,680 Speaker 2: I mean it's very hard with always sponsori contract designed 70 00:03:13,880 --> 00:03:16,280 Speaker 2: you effectively give up a bundle of right. So they 71 00:03:16,320 --> 00:03:18,639 Speaker 2: gave them the training Jersey. I think there's a spot 72 00:03:18,680 --> 00:03:22,560 Speaker 2: on the shorts, which was a new initiative by New 73 00:03:22,639 --> 00:03:25,200 Speaker 2: Zealand Rugby. And then it'll say they get to see 74 00:03:25,240 --> 00:03:28,240 Speaker 2: a number of player hours where you know, players come 75 00:03:28,280 --> 00:03:31,360 Speaker 2: and they're available for photo shoots or they're available for 76 00:03:31,400 --> 00:03:34,680 Speaker 2: in person appearances, et cetera. Like to say that you 77 00:03:34,680 --> 00:03:37,400 Speaker 2: haven't provided something. It's probably pretty difficult because they are 78 00:03:37,440 --> 00:03:40,279 Speaker 2: extremely prescriptive contracts. 79 00:03:41,000 --> 00:03:42,080 Speaker 1: Is six years unusual? 80 00:03:43,280 --> 00:03:47,760 Speaker 2: No, Well, they did the fun of Jersey with our 81 00:03:47,840 --> 00:03:50,240 Speaker 2: trade was six years, and a lot of the contracts 82 00:03:50,240 --> 00:03:53,560 Speaker 2: that have done we're all six year contracts that were 83 00:03:53,600 --> 00:03:56,400 Speaker 2: done at a similar time. Now, probably that is collective 84 00:03:56,400 --> 00:03:59,360 Speaker 2: agreements normally run three years, so I imagine that they try 85 00:03:59,400 --> 00:04:04,080 Speaker 2: to get two cycles of collective agreements to give certainty 86 00:04:04,800 --> 00:04:07,040 Speaker 2: when you're doing collective agreement negotiations. 87 00:04:07,200 --> 00:04:10,080 Speaker 1: Is eight million a good deal? I was surprised at 88 00:04:10,120 --> 00:04:13,480 Speaker 1: how low it was to be, Frank, I. 89 00:04:13,480 --> 00:04:18,839 Speaker 2: Don't know if that's actually the number right, but there's 90 00:04:18,880 --> 00:04:22,040 Speaker 2: a lot of those for a team that only plays 91 00:04:22,160 --> 00:04:24,560 Speaker 2: fourteen games a year, you know, compared to a Major 92 00:04:24,640 --> 00:04:26,880 Speaker 2: League Baseball team that plays one hundred and sixty or 93 00:04:28,240 --> 00:04:31,520 Speaker 2: you know anything, it's probably not bad in the in 94 00:04:31,560 --> 00:04:34,159 Speaker 2: the scheme of things of their other partners, you know, 95 00:04:34,240 --> 00:04:36,239 Speaker 2: it's right up there as one of their top deals. 96 00:04:36,279 --> 00:04:38,560 Speaker 2: I think the Turner was about two hundred and sixty 97 00:04:38,560 --> 00:04:40,599 Speaker 2: eight million last year, and about one hundred and twenty 98 00:04:40,600 --> 00:04:46,040 Speaker 2: of that was sponsorship front of Juicy pay a Lot 99 00:04:46,160 --> 00:04:50,279 Speaker 2: because that is the premium spot. So you know, look 100 00:04:50,279 --> 00:04:52,400 Speaker 2: at and all those deals were done before and he's 101 00:04:52,400 --> 00:04:55,440 Speaker 2: in a MBI commercial split off and before civil it 102 00:04:55,600 --> 00:04:57,720 Speaker 2: was really done because you know, if you look back 103 00:04:57,720 --> 00:05:00,920 Speaker 2: at the timing. So this is actually a really interesting 104 00:05:01,760 --> 00:05:04,320 Speaker 2: little exercise now to see if they do go out 105 00:05:04,360 --> 00:05:06,400 Speaker 2: and try to replace you, if they get another sponsor 106 00:05:06,640 --> 00:05:08,520 Speaker 2: or one of their existing sponsors who's not on the 107 00:05:08,560 --> 00:05:10,760 Speaker 2: jersey to step up and fill the hole. 108 00:05:10,680 --> 00:05:14,560 Speaker 1: Is the market the point eight million you can't get 109 00:05:14,600 --> 00:05:16,600 Speaker 1: it locally, it has to be a big player internationally. 110 00:05:16,680 --> 00:05:21,560 Speaker 2: Yep. Yeah. If you look at their sponsors, then generally 111 00:05:21,680 --> 00:05:25,920 Speaker 2: they are from abroad, in big foreign companies, because you know, 112 00:05:26,160 --> 00:05:28,680 Speaker 2: they're just that's probably one of the biggest changes in 113 00:05:28,680 --> 00:05:31,400 Speaker 2: the sponsorship landscape over the last sort of fifteen years 114 00:05:31,480 --> 00:05:34,520 Speaker 2: is that you know that the numbers needed to run 115 00:05:34,600 --> 00:05:37,760 Speaker 2: these teams and to run these organizations are so huge 116 00:05:37,839 --> 00:05:39,919 Speaker 2: that you know you kind of have no option but 117 00:05:40,000 --> 00:05:43,120 Speaker 2: to position it as a as a global brand attracting 118 00:05:43,200 --> 00:05:44,120 Speaker 2: global sponsors. 119 00:05:44,520 --> 00:05:46,919 Speaker 1: Interesting stuff, all right, So I appreciate your expertise. Simon 120 00:05:46,960 --> 00:05:49,040 Speaker 1: port Halo, Sport Managing Director. 121 00:05:49,520 --> 00:05:52,400 Speaker 2: For more from the Mic Asking Breakfast, listen live to 122 00:05:52,520 --> 00:05:55,599 Speaker 2: news talks they'd be from six am weekdays, or follow 123 00:05:55,640 --> 00:05:57,200 Speaker 2: the podcast on iHeartRadio.