Fallout for Davy widens as firm suspends high-profile partnerships
Davy Group has paused its sponsorship programmes – including patronage of the National Yacht Club in Dún Laoghaire and the National Concert Hall (NCH) – amid the fallout from the bond deal scandal that landed the firm with a €4.13m fine last week.
The Irish Independent has learned that Davy has suspended all activity across its sponsorships in sport, the arts and media.
The recipients affected also include golfers Leona Maguire and Ronan Mullarney and the Irish Times ‘Inside Business’ podcast.
A Davy spokesperson said the decision was a “natural” consequence of the Central Bank’s reprimand of the firm and that its sponsorships would be reviewed after an indefinite pause.
The spokesperson said the display of Davy logos would remain in place for its sports sponsorships. The Irish Times has removed the logo from its podcast already.
Davy has had a relationship with the National Yacht Club since June 2018, when the firm sponsored the club’s regatta with Irish and British Lions rugby player Paul Wallace on hand for the announcement.
The company sponsors the junior regatta annually and the senior regatta every second year, keeping its brand visible to the club’s 1,000 well-heeled members.
Davy started a three-year sponsorship deal with the NCH in April 2019 as its ‘innovation partner’ in support of the venue’s programming in contemporary music, giving the company an association with a cultural institution that welcomes 330,000 patrons every year.
Davy and the Irish Times are less than a year into a three-year multi-platform strategic partnership that kicked off in April 2020.
The Davy case is understood to relate to a deal in which businessman Patrick Kearney and his Kilmona Holdings Ltd sold Anglo Irish Bank bonds via Davy at a steep discount in order to settle a debt – without knowing the buyers were Davy employees who went on to sell the assets at a profit.
In the last six days, the firm has faced a hailstorm of negative publicity, forcing the resignations of its CEO Brian McKiernan, Deputy Chairman Kyran McLaughlin and Head of Bonds Barry Nangle.