Thu May 17 17:10:45 SAST 2012

Bafana could lose R500m deal

Feb 12, 2012 | Kgomotso Sethusha and ANDILE APRIL | 0 Comments

BAFANA Bafana could lose R500m in sponsorship deals as uncertainty surrounds talks on renewal of the country's largest- ever sports sponsorship.

 The broadcast landscape has changed and we can't base our new deal on anything similar to the previous deals 

The multimillion-rand sponsorship, however, ends in winter and neither of Safa's major backers - Absa Bank and SAB - have expressed clear intentions of sustaining the partnership.

The beer company are sponsoring the mother body through their label, Castle Lager.

Together with the banking giant, SAB announced a joint sponsorship deal in 2007 worth half-a-billion to Safa over five years.

That was a much-needed windfall for Bafana Bafana ahead of the 2010 World Cup.

But it appears unlikely that Safa will continue to enjoy the benefits of the deal beyond August, given the delays in re-negotiations.

Key to the sponsorship was the broadcast deal Safa have with the SABC, who would ensure maximum mileage for the companies in Bafana products and matches the national team were involved in.

But with the broadcast deal yet to be finalised between the football association and the public broadcaster, almost a year since it expired, financial backers appear unsure of their continued backing and commitment to Bafana.

Since the expiry of the deal, the rights have been negotiated on a match-by-match basis, as will be the case when the SABC broadcasts the friendly between Bafana and Senegal in Durban at the end of the month.

Safa owns the full rights of friendly matches in South Africa.

In a statement issued last August Safa president Kirsten Nematandani said the "principal matters" had been agreed on with the SABC and that they were awaiting a final quotation on the total revenue.

Safa chief executive Robin Petersen said: "The reason we are taking our time (to sign a new deal) is because we want to ensure that we optimise our broadcast deal in terms of the new broadcast terrain."

He also admitted the impact the television deal has on other sponsorships.

"The broadcast landscape has changed and we can't base our new deal on anything similar to the previous deals.

"The SABC are an important part of that deal, but we want to ensure our new deal gives us the freedom that we require in terms of maximising our broadcast options. Fruitful negotiations are ongoing with our partners.

"Our sponsors understand our situation regarding the ongoing broadcast deal negotiations. The TV deal is important to us to conclude a favourable deal for everyone," Petersen said.

When reminded of the statement he made in October, Petersen said: "There were issues such as broadcast rights to clarify. At one point the SABC didn't believe we owned the TV rights.

"We've retained our terrestrial broadcast rights for use by the SABC and to market our other properties on channels that will expose our football to the rest of the world.

"The upcoming Bafana friendly game [against Senegal] will be the last to be negotiated on a match-by-match basis. We will finalise the TV deal quickly."

According to a top Safa official, the association values its television rights at between R130m and R150m a year.

SABC spokesperson Kaizer Kganyago refused to comment on the matter, saying the issue was between Safa and the SABC.

SAB sponsorship manager Rob Fleming confirmed negotiations have kicked off, but could not disclose more details.

"As you know every contract has its procedure and renewal clauses. We are just following the procedure that is laid out in our contract," Fleming said.

All Absa deputy CEO Louis von Zeuner would say was: "The process has started and once completed, a decision will be taken. There is no delay on the side of Absa."

SAB marketing director Ian Penhale said at the time of the sponsorship announcement that the World Cup was on the horizon and it seemed only "logical to up our commitment significantly for the coming historic chapter".

Is it now no longer logical?

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