Did Google Penalize my site due to interlinking backlinks around same company website and blog?

I’m handling two websites in my company and both have more than 18,000 backlinks (I checked it through my GWT) and most of the links are coming from Blogspot. I checked each and every backlink and I found that one particular blog contains most of our links. That blog has been handled by our colleague and he had posted more than 1080 posts. Each and every post contains my website’s link. That blog is related to cricket and mine is about boxing and track and field. At the end of each post my links have been placed by comma separation which looks odd for me because all the posts are related to cricket and mine is about boxing and track and field. He placed Anchor texts as Boxing gloves and Athletic Gear in the last line of each post and from that Anchor text my website has been getting backlink. After Google Last penguin 2.0 update I found that both of my websites lost ranking on Google. All my main keywords gone to 100th page (Before Penguin update they were on first two pages) including Boxing Gloves and Athletic Gear.


Now my doubt is about the backlinks from that blogspot. Did Google Penalize my site because of that backlinks (interlinking around same company website and blog)? Does Inbound links from cricket related page to boxing page is a link spam?

See this image for more info : http://share.pho.to/2piNo

 

I don't think it's about a cricket site not being related to a boxing site. The two are related in a way as they are both a form of sport. I'm thinking it must be the number of the backlinks from that blogspot to your main site. A couple of links are fine, but a thousand links with each link on each article within the site? Now that's a little fishy don't you think?

My two cents. Have a good day!

 

If the anchor text is all the same then that might be another problem. Google likes it to be a little more diversified these days.