Telstra has backed down in the battle against the NZ Warriors' sponsorship naming rights.
On Tuesday, the NRL forced the Warriors to end their sponsorship deal with Vodafone due to its conflict with the primary competition sponsor and fellow communications giant.
But in a stunning about-face, the company has announced its support for the Warriors partnership with Vodafone to continue a further 12 months to help ease the club's financial burden in light of the sacrifices the team has made to ensure the NRL season could resume after the COVID-19 hiatus.
"Our sporting clubs are feeling the pinch right now and many, like the Warriors, have stepped up to support their fans and the game," Telstra says in a tweet.
"While our naming rights sponsorship is a big investment from us in the game and should be protected in the long term, now is not the time to be taking money out of the sport.
"Just as we've extended our sponsorships that were due to expire for 12 months to support our partners, the Warriors have our support to extend their sponsorship too."
The reprieve should afford the club some time to secure a new long-term sponsor for 2022 and beyond, while ensuring the NRL avoids what newly named advisor Phil Gould predicted would become a "PR disaster".
The club has had an exemption to remain with Vodafone in spite of the direct conflict with Telstra - which became the NRL's primary sponsor in 2015 - due to the long tenure of their partnership.
On Monday, Vodafone announced a new two-year deal to extend their 22-year long partnership with the Auckland-based NRL side, only to be advised by the NRL a day later that it had to end the partnership at the end of this season.
"Sadly, we understand the NRL has advised the Warriors their naming rights partnership with Vodafone NZ is now in conflict with the NRL game-wide partnership with Telstra," the company had said.
"As a result, we understand the NRL is not intending to grant an exemption for the Vodafone NZ partnership beyond the current season, which ends in October 2020.
"This means unfortunately, and very reluctantly, Vodafone NZ will likely conclude its 22 year sponsorship of the Warriors at the end of the current season, having in effect been told by the NRL our brand isn’t welcome."
The loss of the annual $1 million the company provides in sponsorship would have further compiled the club's financial woes, with their coffers already stung by the loss of ticketing, merchandise, and match day hospitality.
