NRL club Penrith and a government agency have become the first private and public entities in sport to share a sponsorship deal. From 2008, welfare agency Centrelink and the western Sydney side will share promotions, with Centrelink the highest bidder for the central sponsorship position on the Penrith Jersey.
The agreement, for four years until 2012, was a unanimous decision by Penrith Leagues board members. "We just felt that this agency could offer the club and community the most" said chairman Barry Walsh.
"It was not an easy decision from the money perspective, but we knew it would set a precedent".
The deal is believed to be worth over $4 million, a moderate sum in the world of modern sports sponsorships. It also sets a dramatic precedent for government organisation spending, and, resultantly, is expected to attract some concern.
Centrelink director-general Marc Quincy noted that while it would be unpopular at first: "We're trying to level the playing field and draw back the gap between government and non-government organisations."
"Penrith as an area is one of our most popular dealership and highest welfare areas, so it was a natural decision once the offer was made."
When questioned about the price the agency had to pay, Quincy maintained that it was a good deal. "For what we're getting, yes, it's good. We're very happy."
Penrith, who play the Tiger's today, unveiled the new jersey and sponsor's logo yesterday but it will not be used until season kick off next March.
