The Dolphins rugby league club has officially terminated its controversial sponsorship with medicinal cannabis clinic Alternaleaf, citing challenges with regulatory compliance under the Therapeutic Goods Act.
The decision to part ways with Alternaleaf comes ahead of the 2025 season, as the Dolphins begin the search for a new sponsor.
The sponsorship, which initially raised eyebrows, ran into issues due to Australia's stringent advertising laws surrounding prescription medicines, including medicinal cannabis. Under the Therapeutic Goods Act, the advertisement of such products is strictly prohibited, and the partnership potentially risked breaching these regulations.
Dolphins chief executive Terry Reader confirmed that despite efforts to resolve the matter, the regulatory hurdles were insurmountable.
"There was some noise around our partnership earlier this year, and we worked closely with Alternaleaf and the TGA to find a workable resolution," Reader explained.
However, the challenges persisted, leading to the end of the relationship.
"Given the challenges with the regulations, our partnership concluded. We still have a great relationship with Alternaleaf, and were circumstances to change, we would certainly be open to working with them again in the future."
The issue came to a head earlier in the year when the Dolphins were forced to cover up Alternaleaf's branding on their jerseys following a court ruling in April.
The situation became even more problematic during a match against the Parramatta Eels in Darwin, where the tape used to cover the logo peeled off due to the humid conditions, drawing further attention to the sponsorship's legality.
Despite the premature conclusion of the sponsorship, both parties remain on good terms.
Montu, Alternaleaf's parent company, expressed their continued admiration for the Dolphins.
โWhile our Alternaleaf partnership with the Dolphins is no longer active, we maintain a positive and ongoing relationship with them, and there remains motivation to pursue a partnership together in the future,โ said Kelly King, Montu's spokesperson and director of public affairs.
She added, โWe have the utmost respect for the Dolphins, have been proud to have been associated with the team and applaud their strong performance during the 2024 season.โ
The sponsorship did not involve medical treatment for Dolphins players, and while cannabis products remain banned by the World Anti-Doping Agency (WADA), the agreement focused purely on the promotion of medicinal cannabis services.
However, the legal constraints made it impossible for the partnership to continue without breaching advertising laws.
