The Israel Folau saga won't go away for Rugby Australia.

The latest is that Rugby Australia yesterday afternoon formally announced there would be no sanctions for Folau.

However, it's understood Rugby Australia told its major corporate partners it would take action over Folau's comments, but they've reneged and the sponsors aren't happy.

Folau's spot at his Super Rugby franchise, the Warratahs, is also said to be up in the air.

Sports management expert Chris Collins told Mike Hosking the issue falls with Rugby Australia, not Folau.

He says that this raises questions about what influence sponsors have over the teams they put money into.

LISTEN TO CHRIS COLLINS TALK WITH MIKE HOSKING ABOVE