SA franchises losing sponsors

[PaarlBok]

The new S15 start taking its toll on the SA game. WP (Stormers), Cheetahs and Brutes have to find themself a new sponsor.

Sport24

Vodacom to pull sponsorships?

Bloemfontein - Free State and Western Province may soon be looking for new sponsors and the Blue Bulls may find themselves in a similar position next year.

Even the continued existence of the Vodacom Cup is in jeopardy as Vodacom apparently intend budgeting for the planned Four Nations and enlarged Super 15.
Argentina will compete with the Springboks, Australia and New Zealand in an enlarged Four Nations.

Negotiations between the cellular phone giant, Free State and WP are at a very sensitive stage and the sponsor is apparently biding its time to see what the South African Rugby Union (SARU) is planning for the Four Nations and Super 15.

Vodacom have apparently indicated to Free State and WP, with whom their sponsorship deals expire in 2010, that they still want the final say on possibly extending the contracts.

The two unions are also being allowed to seek new sponsors.

Free State and WP denied on Wednesday that their sponsorships of several million rands will not be renewed.

Free State president Harold Verster said that Vodacom “are still considering the sponsorships and we will know in time”.

Sad day for our game and one I saw coming from miles away.

 

[Spook]

I thought all sides in SA were ok financially? Surprising news. I also would have thought the Bulls would be rolling in cash.

 

[PaarlBok]

They,r OK at the moment , but they need to find another sponsor for their Vodacom sides , in fact the whole Vodacom competition look like ending, meaning the provinces in SA will have to drop players on the edge or just outside Super Rugby franchise squads.

 

[TOCC]

im confused, how is it that the S15 is starting to take a toll on the game in SA?

All that this indicates to me is that a company isnt willing to renew a sponsorship, that could be purely based on cost cutting in there own buisness.

 

[Spook]

TOCC, the suggestion is someone like Vodafone have a pot of money for rugby which will neither increase or decrease. They are simply moving these funds elsewhere.

 

[PaarlBok]

im confused, how is it that the S15 is starting to take a toll on the game in SA?

All that this indicates to me is that a company isnt willing to renew a sponsorship, that could be purely based on cost cutting in there own buisness.

The Vodacom competition is a very important step on our rugby structure ladder. It fill the gap from youth structure CC U21 to senior CC structure and also give the edge sqaud players a change to get match sharp and the out of form S14 players to get back in form. If it fall away I think the contracted provincial squads should decrease by at least 25%.

 

[TOCC]

Spook, the limitations of funding in a indivdual company is not a reflection of the overall competitions inability to attract sponsorship.

im confused, how is it that the S15 is starting to take a toll on the game in SA?

All that this indicates to me is that a company isnt willing to renew a sponsorship, that could be purely based on cost cutting in there own buisness.

The Vodacom competition is a very important step on our rugby structure ladder. It fill the gap from youth structure CC U21 to senior CC structure and also give the edge sqaud players a change to get match sharp and the out of form S14 players to get back in form. If it fall away I think the contracted provincial squads should decrease by at least 25%.

you missed the point, this is merely a single company which is pulling there sponsorship, Vodacom obviously have budget constraints and cant continue to sponsor rugby as extensively as they have in the past.

Had this been a article about the competition or the teams complete inability to attract a sponsor then i would have agreed with you. However it isnt, companies reduce or withdraw sponorship funding all the time, in most cases there is another company willing to fill the void.

 

[PaarlBok]

Even the continued existence of the Vodacom Cup is in jeopardy as Vodacom apparently intend budgeting for the planned Four Nations and enlarged Super 15.

Thats the one that worries me. The Vodacom Cup competition dont draw spectators in SA and many of this matches are played as curtain raisors for S14 but the beaut of it is that it took quality provincial rugby to the people that normally dont get a shoe in in big rugby in SA.

Example this weekends matches
Weekend Fixtures:

Friday:

Griquas v Platinum Leopards, Kimberley (16:00)
Griffons v Valke, Welkom (19:00)
Eastern Province v Sharks XV, Port Elizabeth (19:00)
Pumas v Golden Lions, Secunda (19:00)

Saturday:

Welwitschias v Blue Bulls, Windhoek (14:00)
Pampas XV v Free State, Parow (15:00)
Border v Boland Kavaliers, East London (15:30)
Western Province v SWD, Parow (17:05)

The two Parow matches is actually played at Ravensmead, a disadvantage place.

 

[TOCC]

Even the continued existence of the Vodacom Cup is in jeopardy as Vodacom apparently intend budgeting for the planned Four Nations and enlarged Super 15.

Thats the one that worries me. The Vodacom Cup competition dont draw spectators in SA and many of this matches are played as curtain raisors for S14 but the beaut of it is that it took quality provincial rugby to the people that normally dont get a shoe in in big rugby in SA.

Example this weekends matches
Weekend Fixtures:

Friday:

Griquas v Platinum Leopards, Kimberley (16:00)
Griffons v Valke, Welkom (19:00)
Eastern Province v Sharks XV, Port Elizabeth (19:00)
Pumas v Golden Lions, Secunda (19:00)

Saturday:

Welwitschias v Blue Bulls, Windhoek (14:00)
Pampas XV v Free State, Parow (15:00)
Border v Boland Kavaliers, East London (15:30)
Western Province v SWD, Parow (17:05)

The two Parow matches is actually played at Ravensmead, a disadvantage place.

I obviously dont fully understand the intricaciesof sporting sponsorship in South Africa, but as far as i see it Vodacom are a naming rights sponsor to that competition, generally speaking, the naming rights sponsor counts for a very small percentage of the overall revenue. Its unheard of to think that a competition would fold on the back of losing there naming rights sponsor

I do understand that a few teams within the competition also have there sponsorship in doubt, but the same stands, the naming rights sponsors of teams is a small percentage of the overall revenue. I think you are jumping the gun a bit here PB, because there will be other companies willing to step in.

Like i have said before, one company scaling back there sponsorship is not necessarily a reflection of the competitions viability but rather the company itself.

 

[Spook]

Spook, the limitations of funding in a indivdual company is not a reflection of the overall competitions inability to attract sponsorship.

TOCCy, it is if noone else wants to sponsor it

 

[TOCC]

Spook, the limitations of funding in a indivdual company is not a reflection of the overall competitions inability to attract sponsorship.

TOCCy, it is if noone else wants to sponsor it

yes i understand that, my point was that PB was insinuating the end was nie over the withdrawl of one sponsor

 

[James Buchanan]

This has been a fundamental problem for SA rugby for aaaaages.

When so many teams/competitions/etc.. are sponsored by one company you're asking for the entire house of cards to fall down.

Hopefully this will encourage diversification of the investment sources from within South Africa which will in turn stabilise things substantially.

 

[PaarlBok]

Fact is the S15 format is going to hurt our game , no doubt about that. They'll probably try to demote the CC into some second rate Vodacom competition in the end. Cant see both continue and Vodacom are thinking along the line to rather sponsor the Stormers , Brutes and Tin Ear S14 franchises iso WP, Blue Bulls and Cheetah provincial teams. The S15 is a international compo , so it do make business sense.