A Gqeberha insurance company is deeply concerned about the future of club rugby in the region following a sponsorship deal between the Eastern Province Rugby Union and a sports drink brand.
Multisure Corporation has taken issue with teams playing in the Score Energy Drink EPRU Grand Challenge Top 12 being forced to carry the competition sponsor’s branding on their jerseys rather than those of the local businesses that prop them up financially.
“Because of this agreement, communities are being denied the opportunity to grow by getting in vital funding,” Multisure CEO Denton Goodford said.
He said that in some instances businesspeople were willing to invest more than R10 000 per month into clubs. But then they at least want their names prominently displayed on jerseys or be acknowledged as title sponsors.
“This branding is what encourages the community to support their businesses.”
Apparently, other companies are already pulling out of sponsoring Grand Challenge teams because of the agreement.
This is causing clubs to lose out on the tens of thousands of rand needed each season to cover essentials such as kit, transport and medical supplies.
Multisure Corporation CEO Denton Goodford, third from right, sealed the sponsorship deal with Gardens Rugby Club life president and SARU rugby legend Gert Whitebooi a month ago. With them are other club representatives. Photo: Supplied
Clubs are also recognising that they cannot approach businesses for funding when the latter will get nothing in return.
Multisure signed a sponsorship deal with historic Kariega rugby club Gardens a month ago. However, it was informed by EP Rugby that it cannot display its logo on the front of the jersey.
Goodford requested a copy of the agreement between the provincial rugby bosses and sponsor but was denied access.
He has now written to the union in a bid to access the contract in terms of the Promotion of Access to Information Act and receipt has been acknowledged.
“Nobody knows much about this agreement; whether it’s verbal or written and what the exact terms and conditions are.
“Gardens and other clubs have asked for it, but George Malgas has not released it, citing confidentiality,” Goodford said.
He argued that the union was a public body of which the clubs were members.
“So how can he sit there and tell us this is confidential?”
EP Rugby was not a private company and should not be treated as such, he said.
“It belongs to the clubs and communities.”
What apparently annoys the clubs even more is that each was only given 23 jerseys. None was provided to the second, third and age-group squads.
He also understands that the competition sponsor will provide EPRU with a sum of money to be awarded to the overall winner and outstanding individual performers at the end of the season.
“A set of good-quality jerseys will cost you less than R10 000,” Goodford pointed out. “But other sponsors provide far more assistance.”
Besides jerseys, players also required shorts, socks, boots, warm-up and winter kits as well as food, he explained. Medical costs for injured players and transport (teams often have to travel long distances) also add to the financial burden.
“These boys practise three times a week and need to cover transport fees,” Goodford, pointing out that many of the Gardens players live in Despatch and surrounding areas such as KwaNobuhle, said.
“The local business sponsorships help them do that. Individuals and smaller businesses have been assisting clubs for years because the unions cannot provide for them.”
Goodford encountered a similar situation at the South Western Districts Rugby Football Union, where the parties entered into a similar agreement, and he believes Garden Route clubs may suffer as a result.
Meanwhile, Multisure has ploughed money into Pacaltsdorp’s Evergreens in George this year with the result that the 93-year-old George club has experienced a massive resurgence.
One team in the Eastern Cape competition have managed to retain their original sponsor’s branding, but only after a trade-off was reached with EPRU and the sports drink.
Goodford called this unfair as “poorer clubs” that had been around for decades were not allowed the same courtesy.
The South African Rugby Union has been informed of the situation and he hopes that the custodian of rugby in the country will get involved.
“They cannot stand by and watch how unions and sponsors bully community clubs for their own benefit without any significant investment in those clubs.”
He said Gardens supporters were already questioning why Multisure was not making any further investments in the club.
“This is why it is important to set the record straight for people in our communities.”