The costly fallout from the ball-tampering scandal has continued, as naming rights sponsor Magellan ended its deal with the Australian Test team and more personal sponsors distanced themselves from the players involved, who stand to lose millions of dollars from the incident.

In a major blow to Cricket Australia on Thursday, the financial group announced it would withdraw its sponsorship as recent events in South Africa were “so inconsistent” with its values. The three-year deal with CA was only struck in August 2017 and had been in place for the recent Ashes series.

Later in the day, Steve Smith’s high-profile sponsorship deal with Sanitarium was torn up, ending his association with the breakfast cereal Weet-Bix, and Commonwealth Bank dropped the former captain as one of its cricket brand ambassadors.

Smith, David Warner and Cameron Bancroft were sent home and handed bans for conspiring to gain an advantage by tampering with the ball in the third Test match against South Africa. Smith and Warner were stripped of the captaincy and vice-captaincy, respectively.

“A conspiracy by the leadership of the Australian men’s Test cricket team ... [was] so inconsistent with our values that we are left with no option but to terminate our ongoing partnership,” the Magellan co-founder and chief executive, Hamish Douglass, said. “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.”

Warner, who has been told he will never hold a leadership role in the Australian team again and is unlikely to play for his country again, has so far been hit hardest in the immediate aftermath of the scandal. On Wednesday he lost a sponsorship deal with the electronics giant LG and on Thursday sportswear company Asics also withdrew its association with Warner and Bancroft.

“The decisions and actions taken by David Warner and Cameron Bancroft are not something that Asics tolerates and are contrary to the values the company stands for,” a statement read.

Quick Guide Ball tampering Show What is ball tampering? When someone interferes with the condition of the ball with the primary aim of altering its aerodynamics. Why would they do that? To gain an advantage over the batsman by making the ball swing more in the air, to achieve reverse swing or to degrade the ball to a point that a new one is required. New balls are favoured by fast bowlers as they move quicker and bounce more. How can it be it done? The ball can either be shined on one side – with the application of lip balm, saliva sweetened by a lolly, polish, sun cream or hair gel – or made more abrasive on the other – by scuffing the ball with a finger nail, rough paper, dirt or even teeth. The seam of the ball can also be picked. Why is it considered cheating? Ball tampering is outlawed by the Laws of Cricket. Under law 41, it is an offence for any player to take any action which changes the condition of the ball, however polishing it on clothing, removing mud and drying the ball with a pre-approved piece of cloth are acceptable. If an offence is found to have taken place during a match, five penalty runs are awarded to the batting side and the doctored ball must be replaced. If discovered retrospectively, other sanctions can be applied.

Photograph: www.alamy.com

Commonwealth Bank said it appreciated the work Smith had done in partnership to support cricket for all Australians but, “in light of recent circumstances we have concluded our current arrangement with Steve as a sporting ambassador”.

“We continue to be proud sponsors of women’s cricket, Indigenous cricket, cricketers with disabilities and grassroots cricket across the country,” a statement read.

Smith is expected to lose over $5m in salary, match fees and sponsorship deals as a result of his 12-month ban, announced by Cricket Australia on Wednesday. The former captain was the best-paid player in the national team, earning a salary of $2m a year and $400,000 in additional match fees. He was also the equal highest-paid Australian in the Indian Premier League, earning $2.4m from the Rajasthan Royals.

But both Smith and Warner have had their IPL contracts torn up. For Smith, that means he is guaranteed to lose $5m in earnings and potentially more if his personal sponsors cancel their contracts. Smith is also sponsored by sporting apparel maker New Balance but it has not yet confirmed whether or not he will remain on its books.

Smith’s loss of status will cost the top-order batsman even more in the longer term. He is banned from leadership roles for two years, meaning his salary, if he returns, will be significantly lower.

Last year’s new pay deal, struck between Cricket Australia and the players’ union, would have provided Smith a substantial pay rise as captain. Currently, players are paid a salary as well as an additional fee of $14,000 for every Test match, $7,000 for each one-day international and $5,000 for an international Twenty20. Cricket Australia’s 2018 schedule would have provided roughly $400,000 in match earnings.

The financial damage for Warner will also be significant and expected to exceed $4m. According to the Australian, Warner earned roughly $1.5m in salary and match fees from Cricket Australia. As the captain of the IPL’s Sunrisers Hyderabad, he also earned $2.4m a year – the same as Smith.

Both Smith and Warner may be able to recoup some of their losses through other club contracts, in England for instance. The England and Wales Cricket Board is seeking clarification as to whether the two would be eligible to play county cricket in the UK.

Warner has current sponsorship contracts with sports equipment manufacturer Gray-Nicolls, Channel Nine, Toyota and the Make-A-Wish Foundation.