CGU Insurance, a major sponsor of the Collingwood Football Club (also known as the Magpies), will redirect $1 million of sponsorship payments in 2021 to initiatives promoting race relations after a report found the club guilty of systematic racism.
The decision came after an open letter urged Collingwood's major sponsors to make statements rejecting racism in a “clear and unequivocal” way. The issue also resulted in club president Eddie McGuire's departure.
CGU Insurance expressed its disappointment in the Magpies as it is “a significant supporter of reconciliation in Australia” focused on promoting diversity, inclusion, and belonging in all communities. As a result, the insurer will donate $1 million of its sponsorship to programs and initiatives supporting First Nations and ethnically diverse organisations.
“We are deeply concerned and disappointed by the findings of the Collingwood Football Club ‘Do Better’ report, and we've made it clear to the club that the report's recommendations must be implemented as soon as possible,” a CGU Insurance spokesperson told The Age.
The spokesperson confirmed that the insurer will end the Collingwood sponsorship at the end of the 2021 season, which the club acknowledged.
“We are still in the process of confirming which programs and initiatives we will support, but it will include supporting First Nations and ethnically diverse organisations. We will provide more details when they are confirmed,” the spokesperson said.
