While it's been a bad week for the New Zealand Warriors, the club should take comfort in the fact that the global sports industry is frequently rocked with scandals greater than this. What happens next, however, is crucial - for the club, its brand, owners, management, players and fans.
Recovery is possible. The Warriors need to apologise to supporters for the disappointment they have experienced. They need to make this apology personal, sincere and evident. They should consider how best to communicate directly with fans and avoid miscommunication - digital media avenues may provide opportunities for their management here.
The club also need to be open, honest and transparent. In the business world, we only need to look to Fonterra's lack of transparency in their crises management, where the public became increasingly disgruntled when issues were not tackled head-on, resulting in severely damaged brand equity that has been described as "one of the greatest gifts the company could have given to a Chinese government that's focused on rebuilding its domestic dairy industry".
This provides a good lesson for any brand facing a PR disaster. The Warriors need to work hard now to ensure that this situation doesn't do any serious long-term damage.
Management also need to demonstrate their commitment for future turnaround and present a professional front.