Jacob’s Creek "pulled out of its 13-year stint" as one of the biggest sponsors of the Australian Open, with the company’s logo "withdrawn from the multi-million-dollar tournament’s website in recent weeks," according to Nick Tabakoff of THE AUSTRALIAN. Talks between Jacob’s Creek and Tennis Australia "stalled recently," with the parties "failing to agree to terms" after the winemaker’s existing contract expired after the 2018 Australian Open. Jacob Creek's owner Pernod Ricard Australia Marketing Dir Eric Thomson confirmed the winemaker is "no longer a sponsor." He said, "Jacob’s Creek has decided to not renew its sponsorship of the Australian Open." It is believed Jacob’s Creek previously paid Tennis Australia at least A$5M ($3.6M) a year. Around the Australian Open, Jacob’s Creek "has also paid millions more to some of the sport’s biggest names," including Novak Djokovic and Andre Agassi, to be ambassadors in branded content segments during recent tennis telecasts. Jacob’s Creek reportedly ended its existing deal with Djokovic as a brand ambassador. Additionally, it will withdraw from TV sponsorship agreements with the tournament’s host broadcaster, for which it paid between A$1.5M ($1.08M) and A$1.9M ($1.37M) a year for ads and segments. One possible contributor to Jacob’s Creek’s withdrawal from the Australian Open was an "August deal struck by the tournament with top French brand Piper-Heidsieck to be its champagne partner." Sponsorship agency Total Sport & Entertainment CEO Paul Kind said, "Given the recent new arrangement by the Australian Open with Piper-Heidsieck, it’s likely a wine brand like Jacob’s Creek, which also offers sparkling wine, could see that deal diluting some of its value" (THE AUSTRALIAN, 10/2).
