Why the Melbourne Cup is fast becoming a PR gamble

For decades, the Melbourne Spring Racing Carnival has been the pinnacle of class, fashion and culture on the Australian events calendar.

But earlier this year, luxury wine brand Penfolds cut ties with the Carnival as the major sponsor. This was a legacy partnership over a number of years – and this isn’t the first domino to fall. Myer pulled the pin on its partnership for the prestigious Fashions on the Field back in 2023.

This comes as the Carnival is seeing consecutive year-on-year decreases in crowd numbers – from just over 122,000 in 2014 down to 91,000 in 2024.

The Victorian Racing Club has even suffered a combined loss of $70 million over the last four years.

The odds are that the turning tide of public sentiment, particularly around animal cruelty and gambling, is the contributing factor.

At least 174 racehorses died from racing or training injuries in past 12 months in Australia – the highest number recorded by the Coalition for the Protection of Racehorses records began a decade ago.

In our age of social media, no brand is safe from backlash in the public arena. The Nup to the Cup campaign has been growing for a number of years online, and is now even expanding to other racing events beyond Victoria.

This is exactly why brands must choose their sponsors and partnerships wisely. While the Carnival is still a major sporting event, it is becoming marred with multiple controversies that makes it more of a reputational risk than an opportunity.

Iconic events like the Melbourne Grand Prix and the Australian Open offer safer alternatives. A record crowd of close to half a million fans flocked to Albert Park F1 racetrack this year, and it’s only set to keep growing.

As the AO surges in popularity each year as well, experts predict it is fast becoming the premier fashion event too – with the likes of Ralph Lauren and Louis Vuitton being major partners this year. This is starting to cut the Carnival’s grass in more ways than one.

From a PR perspective, the exposure is not worth it if it ties an organisation to such a divisive debate. In the minds of consumers, sponsor’s logos will be attached to the negative public image of the Cup – whether it be conscious or even subconscious.

Organisations must be proactive and prioritise sponsorships that align with the values of the public. This way, we can push for the change we want to see in the world, instead of hanging onto outdated, tone-deaf traditions.