At the start of this week, Santos Ltd put out an announcement to the Australian Stock Exchange alerting investors to a conditional proposal from an XRG-led consortium to acquire all the shares in the company.
That may have left investors calculating whether the 28 percent premium on where shares closed on Friday made it worth it, put the state government in job protection mode and set the wheels in motion at the Foreign Investment Review Board but for the cycling focussed there was also another question to be pondered – what could an offer on this publicly-listed South Australian-based energy group mean for the Tour Down Under?
Santos has been a title sponsor of the event since 2010, and in that time, a number of other races have come and gone. With reliable support, however, the Tour Down Under has managed to hold a firm grasp on its place in the men’s WorldTour calendar and also introduce a Women’s WorldTour event.
"We are proud to partner with Santos to deliver the biggest cycling race in the southern hemisphere which this year saw the biggest crowds since 2018 and record economic impact for the state,” said a statement from the event delivered in reply to a query from Cyclingnews.
Through the years that the company has been a title sponsor of the state government-backed event it has been estimated that the race has contributed around $740 million to the South Australian economy.
The 16-year title sponsor was also firmed up for another three years, as the 2025 event unfolded in January. That represented a firm and public commitment which, in light of the potential ownership change, delivers what is likely now more than ever a sense of planning security for the coming editions.
“As our naming rights partner to 2028, we are in regular dialogue with Santos and can provide further information regarding your questions at the appropriate time,” said the race.
Time is on the race's side, given that for the next three years an agreement is already in place – and even if potential new owners could break that it would seem a PR folly to consider it – but what happens once that term is over?
For a start, the details of the sponsorship arrangement haven't been revealed, so while it is fair to assume naming rights make it substantial, the key to driving the race has always been the backing of the state government. The answer to the question of who funds the event on the race website states: "The Santos Tour Down Under is partially funded by the South Australian Government, with all other revenue generated through corporate partnerships, valued event sponsors and sales from associated events."
So the Santos title sponsorship is not the be-all and end-all, but it is important, though of course, there is always the option that another could be found. That, however, is not an easy task – if opting for another title sponsor was simple perhaps it may have already been considered as a way out of the nearly inevitable yearly emergence of protests surrounding the race to call for a dumping of the fossil fuels provider.
A sponsorship opening, of course, is also presuming two things which are by no means a given. Firstly, that the consortium led by XRG – the investment arm of Abu Dhabi's state-owned oil company – does get all of the many necessary approvals in place to make the deal happen and, secondly, that it would then want to walk away from the Tour Down Under sponsorship. The potential new owners have at the outset outlined in a statement that they plan to maintain the Santos brand and headquarters in Adelaide as well as "work closely with the existing management team to accelerate growth and support local employment and the communities where Santos operates".
Plus, XRG itself has already made clear it has an interest in being associated with cycling, launching as a co-title sponsor of UAE Team Emirates XRG at the start of the year. In fact the men's race at this year's event ended with an overall victory for Jhonatan Narvaez (UAE Team Emirates XRG) that put the XRG brand on his jersey right on full display on the top step of the podium in front of the Santos banners – cycling tied together the two brand names long before any deal was announced.
The reality is that there are still a considerable number of uncertainties to be resolved and time to pass before the future of Santos, and therefore the long-term outlook for its involvement in the Tour Down Under, becomes clear. What is certain, however, is that in the coming weeks, race routes will be revealed and dates confirmed as the planning continues full steam for another January outing in South Australia that will open up the 2026 women's and men's WorldTour racing.
*Cyclingnews has reached out to the XRG-led consortium for comment on its position regarding the Tour Down Under title sponsorship.
