Folau may suck big brand sponsors into his stoush

Pressure is growing on the deeppocketed sponsors of Rugby Australia, with legal experts saying the likes of Qantas could be dragged into a brand-damaging legal case with axed Wallaby fullback Israel Folau.

Several lawyers have said Folau could go after sponsors for damages if it can be proved Rugby Australia’s big wigs only acted to remove the star due to pressure from them, reports news.com.au.

Folau is seeking up to A$10 million in damages from RA after it terminated his $4 million contract following an Instagram post that said gay people, along with others, were headed to hell unless they repented.

The former star player’s lawyers said the sacking went against section 772 of the Fair Work Act, which bars discrimination in employment on religious grounds.

RA said it was justified to ditch Folau because of repeated breaches of the players’ code of conduct.

RA’s headline sponsor is Qantas but big brands backing the code also include Land Rover, Swisse and HSBC bank.

Michael Harmer, of Hamers Workplace Lawyers, said it could work in Folau’s favour to suck the sponsors into his stoush.

Fearing both reputational damage and a possible expensive ruling against them, RA’s corporate backers may turn their focus on the code and urge it to settle with Folau.

“If you can pull in some of them, so they are in the melting pot, you would think pressure to get the thing fixed would come from the sponsors,” Harmer told The Australian newspaper. “It would be wise to have a crack at some sponsors, particularly Qantas.”

Sponsors could be liable for penalties of up to $60,000 if a link can be proved between them and Folau’s demise.

Speaking after the breakdown of a conciliation meeting between RA and Folau on Friday, the code’s chairman, Cameron Clyne, said his former player’s repeated posting of controversial social media comments had put him at odds with the Government, staff and sponsors and left it with little choice but to act.

“[The alternative] would be that we’d have no sponsors at all because no sponsor has indicated they would be willing to be associated with social media posts of that sort and that includes government, because we’ve also heard from them,” Clyne said.

Qantas CEO Alan Joyce has been vocal in his support of LGBTI rights. He was a high-profile corporate figure in the fight for marriage equality and Qantas is a sponsor of the Sydney Gay and Lesbian Mardi Gras.

It has also made him a target for some on the right of politics, including Home Affairs Minister Peter Dutton, who notably said in 2017 that Qantas should refrain from his public support for same-sex marriage and leave that to “elected decision makers”.