Magellan Financial Group Ltd cancels Cricket Australia partnership

Magellan Financial Group Ltd (ASX: MFG) is one of Australia’s leading fund managers, it runs several market-beating internationally-focused funds. Magellan recently signed an agreement with Cricket Australia last year to be the naming rights sponsor of the Australian Men’s Domestic Test Series.

Today, Magellan has announced that it is withdrawing from the Cricket Australia partnership. Magellan went into the agreement because the partnership was based on “shared values and reputations of integrity, leadership, dedication and an unwavering customer-first culture.”

You would only have needed to have glanced at the sports news recently, or even just the main news, to see that the Australian Men’s Cricket team has been embroiled in a cheating scandal. It appears that one of the team was tampering with the ball, with the full knowledge of the leadership of the cricket team.

Magellan spent quite a few million on the arrangement for sponsorship, so it’s likely that it will get a fair chunk of that back. The Ashes, the main cricket test series, has already occurred – this was going to be the big draw for viewers.

Hamish Douglass, co-founder and CEO of Magellan said “A conspiracy by the leadership of the Australian Men’s Test Cricket Team which broke the rules with a clear intention to gain a fair advantage during the third test in South Africa goes to the heart of integrity.

“Regrettably, these recent events are so inconsistent with our values that we are left with no option but to terminate our ongoing partnership with Cricket Australia. We were delighted with the recent Magellan Ashes Series sponsorship and it is with a heavy heart that we have to end our partnership in these circumstances.”

Foolish takeaway

This isn’t a huge shock, nor will it make a big difference to Magellan’s FY18 result. But, it’s good to see that Magellan are taking a stand on principal against cheating. Warren Buffett once said “it takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

Reputations are important, that’s why I think this top stock is a leader in its field.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!