National Rugby League side Manly Sea Eagles is facing the prospect of a A$2.8M ($2M) "sponsorship black hole" after losing its initial court case with major backer Coco Joy, according to Adrian Proszenko of the SYDNEY MORNING HERALD. The club was of the belief it had entered into a binding A$3.6M ($2.7M) contract with the coconut water brand and was "seeking the winding up of the company if it failed to pay" the A$302,500 ($229,333) it claimed was due and payable on Feb. 20. However, the statutory demand served on parent company FAL Healthy Beverages "was set aside in the Supreme Court on Wednesday, with the Sea Eagles ordered to pay FAL's costs." The club "plans to launch fresh Supreme Court proceedings for breach of contract" in another attempt to recoup its money. But given that process would likely take a minimum of 18 months, and probably cost a six-figure sum, "it remains to be seen whether the club attempts to find a new sponsor." To date, the Sea Eagles have "ignored FAL's request to remove its brand from jerseys in the belief it should uphold its end of the contract" (SMH, 8/3).
