Israel Folau, Rugby Australia and the price of equality in Australian sport

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It cost Israel Folau millions.

It made Nike billions.

Equality in sport isn't just about social conformity and being on the "right side of history" — in today's world it's also about big bucks.

How you handle everything from racial to sexual diversity can impact on your bottom line. Here's why.

The cautionary tale

A few weeks ago, Rugby Australia sacked arguably the world's best rugby player for his latest comments denouncing homosexuals and other "sinners".

Israel Folau's defence of his controversial social media posts has always been his faith. But the way he has used his sizeable platform to promote it is what ultimately ended his Wallabies career.

"Izzy absolutely has a right to believe in and feel what he feels," You Can Play director Sarah Kogod said.

"This is not about changing minds or taking away someone's rights.

"Izzy had a right to say what he said, but not the way that he said it."

You Can Play is a US-based LGBTQI advocacy body and Ms Kogod is an adviser for major US sporting bodies, including the NFL and NHL, teaching them how to institutionalise inclusion and acceptance.

She is currently on a national tour of Australia holding workshops and advising on the commercial benefits of diversity within Australian codes.

Ms Kogod has met with Rugby Australia in the aftermath of their historic decision to sack Folau for breaching the game's code of conduct. She has encouraged them to learn from the experience.

"There [have] been some situations we recognise that perhaps could have been better. Mistakes happen," she said.

"People say things and how you get through that is very important. We have done a lot of that in North America.

"With Rugby Australia and with all of the teams, I think that has been a big point of conversation.

"How do we embrace someone's right to believe what they believe, players included, while also protecting the fan base?"

Appeal to their profits, not conscience

Bluntly put, codes and clubs that endorse inclusivity and promote it openly can benefit from a huge boost to their bottom lines.

More and more, sporting codes and individual athletes rely on sponsorship to stay afloat.

Professional athletes have use-by dates and embracing a more inclusive "look" is now integral to maintaining these relationships.

Because it's completely feasible that brands will soon have the biggest influence in world sport.

If you risk getting major sponsors offside, you risk moral and financial bankruptcy.

"One of the obstacles, aside from whether it is financially beneficial, is what will happen," Ms Kogod said.

"Will our fans leave us? Will we have a revolt? Will we have protesters?"

The public rewards inclusion

Often the sphere of public opinion sides with those who promote tolerance.

Look at sportswear giant Nike.

The American company added $6 billion to its bottom line when it released an ad starring controversial NFL player Colin Kaepernick.

The ex-49ers quarterback divided America when he knelt during the national anthem to protest racial inequality.

It was a move that sparked protests across the league and enraged US President Donald Trump.

But the Nike-Kaepernick case proves how beneficial sponsorship deals around diversity in sport can be. For the brand and the athlete.

In comparison, Folau has not only lost his $4 million Rugby Australia contract for saying homosexuals, among others, are destined for hell, but also lucrative ambassadorships with ASICS and Land Rover, too.

"There are a lot of reasons why it has been beneficial to either an individual athlete or an organisation as a whole to be more inclusive," says Ms Kogod.

"You look at the valuation of the LGBTQI community at almost a trillion dollars in spending power."

"And you have brands that want to be on the right side of history ... they make money when they do that.

"When you can give people a little bit of clarity around just how many people support this movement, then it makes a big difference."

Of course, backlash to controversial comments from athletes isn't new, it's just the financial ramifications have become far greater.

Just ask Stephanie Rice and Manny Pacquiao.

The champion swimmer lost her Jaguar endorsement for taunting Springboks fans after a loss to the Wallabies in 2010, tweeting, "suck on that f****ts". She later apologised.

Nike scrapped their big-money contract with boxer-turned-politician Pacquiao for his anti-gay remarks.

So perhaps that's the takeaway for Australian codes — especially for the NRL, one of the only sporting bodies to not attend any of Ms Kogod's workshops.

When you prioritise inclusivity and diversity in sport, you maximise the commercial rewards.

For better or worse, the way most "problems" are solved is when they affect your hip pocket.

Topics: sport, community-and-society, business-economics-and-finance, sexuality, australia