When an oil and gas firm secures branding space on an AFL jersey, its intention is not to convince fans to buy its products.
For example, fans of the Fremantle Dockers cannot simply head to their nearest service station to purchase Woodside Energy oil or its liquefied natural gas.
This tactic contrasts with standard sponsorships, which usually aim to prompt consumers to buy food, beverages, or place bets.
The situation escalated when Kevin Parker, Fremantle’s primary ticket holder and member of Tame Impala, wore a team jersey with the Woodside logo obscured during a concert tour. This act reignited calls to end the partnership with the oil and gas sponsor, given its contribution to climate change.
This scenario raises an essential question: if a fossil fuel firm does not directly sell products to the public, why invest millions in jersey branding and invite public scrutiny?
Building social capital
Companies like Woodside frequently sponsor sports teams and community organizations to build social capital, which is a reservoir of goodwill that can help them withstand public criticism.
Fossil fuel companies, in particular, aim to maintain strong public support since they rely on state and federal policymakers, along with local governments, for project growth and operations. Opposition from local communities can obstruct their efforts.
This context clarifies why extractive industries pursue significant sponsorship agreements with sports teams situated near their operational areas.
For instance, the Australian branch of Indian conglomerate Adani, known as Bravus, sponsors the North Queensland Cowboys, aligning its brand with a regional club located close to its coal mine.
Professor Emma Sherry, dean of the school of management at RMIT University, points out that firms with “We often see that money go to the arts, and of course, we often see it in sport,” with local communities often invest in sports sponsorships to leverage the emotional bond fans have with their teams.
“What the companies are trying to do is use people’s love for their team to create a similar good feeling towards the company.” says Sherry, who specializes in sport management.
“Woodside, get off my chest”
While this approach is not inherently negative—since there exists an unspoken social contract for companies to give back to the communities in which they operate—the complexity arises when a high-profile sponsor is deeply involved in carbon emissions and seeks to use sports and community activities to shift public perception.
During the renewal of Woodside’s long-term sponsorship with Fremantle at the end of 2024, the oil and gas company included a poorly worded assertion that both organizations in Western Australia shared a “looking forward to continuing our work together”
This position became increasingly challenging to maintain after Woodside abandoned its long-term emissions and clean energy objectives.
In response to the “operating under genuine financial pressure and are providing valuable services to children and families” campaign advocating for the sponsor’s removal, a company representative stated that Woodside remains committed to its partnership with the Dockers and is “Sport relies on the natural environment to be successful. For example, we have heat policies, and if the temperatures keep going up, we’ll have to stop playing,”
An investigation by climate communication nonprofit Comms Declare revealed that major coal, oil, and gas companies are reaching out to children through schools, museums, science centers, sports clubs, and other youth initiatives.
Many institutions accepting funding from these companies are “It is one of those things that’s becoming increasingly visible, not just from a sponsorship perspective, but also people realising that, if I’m in a snow sport and the snow melts, then my sport doesn’t exist. “Or if I rely on grassy fields to play, and there’s a drought, I won’t be able to play.” the report indicated.
Woodside’s involvement in 47 programs, including its prominent branding on surf singlets worn by children in the beach “nippers” program organized by Surf Life Saving Western Australia, was heavily featured in the report.
Growing backlash
The connection between fossil fuel companies and sports is not a new development; for instance, Santos is a primary commercial partner of the Wallabies, and Alinta Energy previously served as a major sponsor of Cricket Australia.
However, fan discomfort is escalating into a familiar backlash, similar to the growing resistance against promotional efforts by sports betting companies.
While the AFL grand final is expected to occur in cool weather on Saturday, large areas of Australia, including Victoria, have just experienced their hottest winter on record.
Sherry emphasizes that rising climate awareness, especially among younger fans, is demonstrating to sporting codes how a changing climate threatens their future.
“Sport relies on the natural environment to be successful. For example, we have heat policies, and if the temperatures keep going up, we’ll have to stop playing,” Sherry explains.
“It is one of those things that’s becoming increasingly visible, not just from a sponsorship perspective, but also people realizing that, if I’m in a snow sport and the snow melts, then my sport doesn’t exist.
“Or if I rely on grassy fields to play, and there’s a drought, I won’t be able to play.”
- Jonathan Barrett is Guardian Australia’s business editor
