If the partnership had gone ahead the media would have had a field day. And since the Aussie Rules culture is often shown to be sexist and blokey (though not on the same scale as Rugby League) the decision is totally understandable.
That said, I do suspect that many fans wouldn't have been offended at all by the sponsorship deal. And there would have even been a few very liberal activist types who - believing that sex work is actually empowering to women - might have even seen it as a pro-feminist move!