RIP Melbourne Storm; a PR disaster on so many levels

“The biggest scandal in Australia’s sporting history…” is how just one journalist describes the Melbourne Storm storm. It’s a salutory reminder of how the underhand actions of just one or two individuals can have a cascading or domino effect on PR, trust and reputation. The NRL uncovered salary breaches and financial irregularities estimated to be in excess of $1.7million over five years, around $400,000 in 2009 and with a projected breach of $700,000 in this year (2010). The ‘Storm’ has been stripped of its premierships in 2007 and 2009, three minor premierships and their eight competition points this season. They will not be able to accrue any more points this season, have been fined $500,000 and must pay back $1.1m in prize money.

It’s a PR disaster for the execs who masterminded the breaches; PR embarrassment for the club(s) they represent now and in the past; PR humiliation for the players they paid; PR nightmare for the sponsors who invested in good faith; major PR gaffe for the league and code of Rugby League; and PR shame for the image of Australian sport. Storm indeed.

Advertisements

One thought on “RIP Melbourne Storm; a PR disaster on so many levels

  1. PR will have to ‘fix’ it – get the sponsors back, rebuild the integrity of the brand, build membership etc and they will not be allowed to make a single move without the corporate lawyers’ imprimatur. The irony lies in the fact that if the lawyers were engaged by management in the first instance this unholy mess should not have arisen.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s