south african tourism to sponsor tottenham hotspur

Inside SA Tourism's nearly R1bn Tottenham Hotspur sponsorship proposal

• Loadshedding
• South African News
• African News
• International News
• All Opinions
• Latest Opinions
• Raymond Suttner - Suttner's View
• Politics 360 - Ebrahim Fakir
• Institute for Security Studies
• South African Institute of International Affairs
• Saliem Fakir - Low Carbon Future
• The Conversation
• Real Economy
• Other Opinions
• Author Interviews
• All Legislation
• Constitution
• Audio Articles
• Recommendations
• All Case Law
• Constitutional Court
• Supreme Court of Appeal
• High Courts
• All Legal Briefs
• Company Posts
• Legal Notice

Note: Search is limited to the most recent 250 articles. To access earlier articles, click Advanced Search and set an earlier date range. To search for a term containing the '&' symbol, click Advanced Search and use the 'search headings' and/or 'in first paragraph' options.

And must exclude these words...

Sponsored by

Please enter the email address that you used to register on Polity.org.za. Your password will be sent to this address.

Email this article

separate emails by commas, maximum limit of 4 addresses

Article Enquiry

Inside sa tourism's nearly r1bn tottenham hotspur sponsorship proposal, embed video.

Embed Video Popup Video Instagram

Download Buy Photos

1st February 2023 By: News24Wire

SAVE THIS ARTICLE       EMAIL THIS ARTICLE

Font size: - +

The South African government, through the department of SA Tourism (SAT), is looking at sealing a deal worth almost R1-billion to sponsor one of England's elite soccer clubs, Tottenham Hotspur.

SA Tourism proposed a three-year deal worth £42.5-million (about R900-million) starting at the beginning of the 2023/24 English Premier League season and ending at the end of the 2026/27 season.

The presentation revealed that in exchange for the whopping investment, SA Tourism would receive kit branding, interview backdrop branding, match-day advertising, partnership announcements, training camps in South Africa, and free access to tickets and stadium hospitality.

However, it noted that a risk was raised at a board meeting on 27 January 2023, which was related to Tottenham being relegated to a lower division during the three-year agreement.

"While this is obviously unlikely, given the historic performance of Tottenham Hotspur, raising this will undoubtedly bring into consideration a possible bonus payment to be made by SA Tourism should Tottenham Hotspur perform better than expected," the proposal read.

A source close to the matter told News24 that the proposal was presented and voted for at a board meeting held at 20:00 on Tuesday.

According to the source, Tourism Minister Lindiwe Sisulu met with Tourism SA acting CEO Themba Khumalo before the meeting.

The source said a delegation was expected to fly out on Thursday to sign off the deal.

News24 understands that the finalisation of the proposal has to be settled before the imminent Cabinet reshuffle by President Cyril Ramaphosa.

The documents read, "For SA Tourism to break through the noise and reclaim our position in the global travel community, we will need a step-change growth strategy and a series of BIG strategic and specific actions to re-assert our position above pre-[Covid-19] pandemic performance measures."

The documents also revealed that SA Tourism engaged with the club to be a tier-one partner of "London's most valuable football brand and the 8th most valuable football brand worldwide".

The documents further revealed that some board members, including South Africa's High Commissioner in the UK, had already been to the Tottenham Hotspur Stadium to assess and verify the "feasibility of this proposed venture".

It noted that the football club had strong links to SA, with Manchester United's Benni McCarthy , Mbulelo Mabizela , Steven Pienaar , and another local, Bongani Khumalo , having donned the team's colours.

Under the Q&A regarding the financial obligation to be incurred by SA Tourism in terms of the partnership proportionate to Return on Investment (ROI) it would obtain as a result, the proposal stated: "As entering into a sponsorship partnership with Tottenham Hotspur will likely result in a disproportional contribution (of more than 36%) towards the achievement of primary objective (21-million tourist arrivals), it would therefore be completely justifiable for SA Tourism spending a disproportional percentage of its annual marketing budget (36%) on the proposed Tottenham Hotspur partnership while having in place a risk management strategy to properly manage all risks associated with that.

"This can in no way be construed to a scenario of 'putting all your eggs in one basket'."

In a statement on Wednesday, Sisulu's spokesperson, Mpumzi Zuzile , said proposals were received by SA Tourism and processed by a project team before they were sent through to the executive committee and presented to the SAT board.

"Essentially, the SAT proposal is to conclude a memorandum of understanding (MOU) with Tottenham Hotspur Football Club. It is non-binding. Such a proposal must still pass muster within the tourism ministry and is subject to the concurrence of National Treasury, to conform to government prescripts.

"With regard to this matter, Minister Sisulu is still awaiting a report and to be briefed by the SAT board as they are independent and take their own decisions on various matters. It is mischievous to relate this to the imminent Cabinet reshuffle," Zuzile said.

Zuzile added that Sisulu was consulting her legal team and would communicate the way forward in due course.

EMAIL THIS ARTICLE       SAVE THIS ARTICLE

To subscribe email [email protected] or click here To advertise email [email protected] or click here

Polity.org.za is a product of Creamer Media. www.creamermedia.co.za

Other Creamer Media Products include: Engineering News Mining Weekly Research Channel Africa

Newsletters

Sign up for our FREE daily email newsletter

Subscriptions

We offer a variety of subscriptions to our Magazine, Website, PDF Reports and our photo library.

Subscriptions are available via the Creamer Media Store.

Advertising on Polity.org.za is an effective way to build and consolidate a company's profile among clients and prospective clients. Email [email protected]

Here’s why SA Tourism chose to sponsor Tottenham Hotspur instead of your favourite team

South African Tourism acting CEO Themba Khumalo says the proposed almost R1bn deal to partner with Tottenham Hotspur has nothing to do with football but the economic impact of tourism. 

The agency on Thursday held a press conference to defend its proposed sponsorship deal with the English football club using taxpayer money, saying it will keep money rolling into the country. 

News of the proposal was met with angry reaction since it was broken by Daily Maverick , with many South Africans questioning its cost amid load-shedding and crumbling infrastructure.

Speaking to the media, Khumalo said it was nothing new for South African Tourism to spend millions on foreign marketing, as  had been done in previous years.

“We are in the business of persuading foreign nationals across 24 markets around the world that we have identified travel to South African and spend money in our economy.

“They bring foreign investment into our country, which creates job support SMMEs, supports young people to come into the sector and drives people with disabilities to have the dignity of a livelihood and recover the economy in general,” said Khumalo.

SA Tourism’s proposed Spurs deal ‘has more benefits’ than Rwanda and Arsenal

He said Tottenham Hotspur was chosen because they were the only top performing team that did not have a destination partner.

“This is the doorway for us to be able to access the followers of  Premier League football in the UK. We also looked at the audience footprint for the Premier League and the team we are engaging with. The biggest audience is in the UK, which is our biggest international travel market to South African. 

“The second biggest audience is in the US, which is our fastest growing international arrivals market, and the rest is Europe and Asia.”

Khumalo said the deal was not a UK-based initiative but it the team is based in the UK.

“Because the games are played throughout the year, it gives us presence on TV throughout the year and gives us marketing platforms throughout the year. We can change our creative and message, make it seasonal and based on what we are selling on the supply side within South Africa. 

“This is about the economic impact of tourism. It has nothing to do with football.”

ActionSA rejects SA Tourism's proposed R1bn sponsorship deal with Tottenham Hotspur

Listen | ‘it’s about economic recovery’: sa tourism on r1bn spurs partnership, tottenham hotspur deal ‘irrational, irresponsible, vain’.

Would you like to comment on this article? Sign up (it's quick and free) or sign in now.

Please read our Comment Policy before commenting.

• Pitso ‘proud of how the players fought to the end’ in Abha relegation Soccer
• Heartbreak for Mosimane in Saudi as Abha Club relegated on final day Soccer
• Proteas’ star-studded batting line-up aim for all-out attack at World Cup Cricket
• ‘If it’s meant to happen it will’: Pirates’ PSL top scorer Mabasa on Bafana call Soccer
• Second place, 23 points behind is not a huge achievement: Pirates boss Riveiro Soccer

Latest Videos

• Deputy Minister
• News Currently selected
• Integrated Tourism

Today, I am updating the media and public on the Tottenham Hotspur FC and SA Tourism Sponsorship Proposal matter.

Following my appointment as the Minister of Tourism by President Cyril Ramaphosa, I expressed my commitment to working harder and doing all we can together with all stakeholders to advance the tourism sector and hitting the ground running.

The tourism sector is a major one for our country as we boast some of the world's most beautiful natural landscapes, a diverse mix of cultures, experiences and our best asset, our people.

The tourism sector is also a major contributor to the country's Economic Reconstruction and Recovery Plan as announced by President Cyril Ramaphosa in October 2020 and The Tourism Sector Recovery Plan adopted by Cabinet in March 2021.

I am therefore committed and excited about the work we can do in this space together with the private sector and communities to reach our full potential and see millions more people visiting this beautiful South Africa we call home.

Of course one of the key matters in this portfolio, which I have inherited, is that of the Tottenham Hotspur FC and SA Tourism Sponsorship Proposal which has been in the public domain for a few weeks.

Given the circumstances we find ourselves in economically, there has to be much more careful consideration of everything we do as government.

Money must at all times be spent wisely and prudently as we are entrusted with the public's funds.

SA Tourism is an entity of the National Department of Tourism, established in terms of the Tourism Act No.3 of 2014.

In terms of the proposed Tottenham sponsorship matter, some of the key information before me and some information which has been in the public domain includes:

• A presentation from Tottenham was made to a number of SA Tourism officials in December 2022 here in South Africa.
• SA Tourism Board members then travelled to London between 12 and 17 January 2023.
• On 27 January 2023 the Board considered the proposed partnership / sponsorship with Tottenham and asked management to address certain aspects and table an amended proposal.
• On 31 January 2023 at around 16h00 the matter first appeared in the media (Daily Maverick).
• Later that day, at around 22h00, the SA Tourism Board approved the proposal (31 January 2023). The approval was subject to due consultation with the Minister of Tourism and National Treasury.
• The matter also served before the Portfolio Committee on Tourism on 21 February 2023 and the PC's report can be found here:  https://pmg.org.za/tabled-committee-   report/5236/ ​

  After my appointment, I immediately sought and obtained legal advice regarding the Tottenham matter. In terms of that advice, there are three reasons why the Tottenham sponsorship is unlawful and invalid. The three reasons are:

• That the sponsorship is in fact a procurement event which does not comply with Section 217 of the Constitution, the Treasury instructions issued in terms of the Public Finance Management Act 1 of 1999 (PFMA) and SA Tourism's own Supply Chain Management Policy. It appears that the sponsorship is a service which was proposed to be acquired by procurement through “sole source". Sole source procurement is however only allowed where there is no competition in the market and only one supplier is able to provide the goods or services, which does not appear to be the case here.
• That the sponsorship has not been budgeted for as required by section 53 of the PFMA and that the expenditure thereon would be irregular or unauthorised within the meaning of those terms in the PFMA.
• That the deal amounts to a “significant partnership transaction" which required my prior approval in terms of Section 54 (2) of the PFMA.

However, I have written to the SA Tourism Board on Wednesday 22 March 2023 asking for their response regarding the above. I have asked the SA Tourism Board to respond to my letter by 29 March 2023.

The Board Chairperson has this morning, 24 March 2023 sent me an interim response and a copy of their letter is attached.

I have also written to the Minister of Finance on 10 March 2023 to enquire whether he had approved the proposal or transaction and have not yet received a response from the Minister of Finance.

A copy of my letter to the SA Tourism Board is attached, however, the key information I am seeking is as follows:

• Has the Tottenham deal been formally cancelled? If so, I have asked for proof of this.
• Does the Board regard the Tottenham deal to be a form of sole source procurement? If so, the Board has been asking to explain how the requirements for such form of procurement have been met.
• Does the Board regard the Tottenham deal to be a significant transaction which trigger the need for my prior approval? If so, will the board request my approval and when?
• Has the Tottenham deal been budgeted for in the 2022/23 budget? If not, why is the expenditure on the deal not unauthorised or irregular within the meaning of those terms in the PFMA?

As the Minister and as the Department of Tourism, we are committed to growing tourism, getting into untapped markets and truly reaching our full potential.

However, everything we do, will be done in accordance with the law and due process.

Now in this time of global economic crisis, we need innovation and we need to work together to grow our markets and create more jobs for our people in a cost effective manner.

This matter has been marred by a lot of controversy and has raised many questions and we need to resolve this matter decisively and in the best interest of the people of South Africa as soon as possible.

As a country, when we enter into such massive partnerships, it is vital that we are able to be fully accountable, that we are transparent and can answer South Africans clearly and honestly.

Based on the Board Chairperson's interim response received this morning 24 March 2023, my advice to the SA Tourism Board is that the proposal may as well be stopped completely.

I thank you

Enquiries:

Zara Nicholson

Media Liaison Officer to Minister Patricia de Lille ​Mobile: 079 416 5996

Email:  [email protected] ​

_________________________________________________ ​____________________

Attachment: Minister de Lille Letter to SA Tourism Board Chairperson ​

MINISTRY OF TOURISM REPUBLIC OF SOUTH AFRICA

Private Bag X424, Pretoria, 0001, South Africa. Tel. (+27 12) 444 6780, Fax (+27 12) 444 7027

Private Bag X9154, Cape Town, 8000, South Africa. Tel. (+27 21) 469 5800, Fax: (+27 21) 465 3216 ​

Mr Thozamile Botha Chairperson of the Board of South African Tourism ​Private Bag X10012 SANDTON 2146

SOUTH AFRICAN TOURISM AND TOTTENHAM HOTSPUR RESOLUTION

Dear Chairperson,

I refer to the Resolution of the South African Tourism Board, dated 31 January 2023, to enter into a partnership deal with the Tottenham Hotspur Football Club.

I have obtained legal advice from senior counsel to the effect that the Tottenham deal is unlawful and invalid because:

It is a procurement event which does not comply with section 217 of the Constitution; Treasury Instruction 3 of 2021/22 issued in terms of the Public Finance Management Act 1 of 1999 (“ the PMFA "); and SA Tourism's own SCM Policy. The deal amounts to a sole source procurement for which the requirements have not been met; and / or

It amounts to a significant partnership or “similar arrangement" with Tottenham or it is the commencement of a significant business activity, a transaction for which my prior approval is required in terms of section 54(2) of the PFMA.

Furthermore, I have considerable doubt whether the Tottenham deal has been budgeted for as envisaged in section 53 of the PFMA. If not, expenditure on the deal would be irregular or unauthorised within the meaning of those terms in the PFMA.

Against this background, kindly address the following issues:

Has the Tottenham deal been formally cancelled? if so, provide written proof of same.

Does the Board regard the Tottenham deal to be a form of sole source procurement? If so, explain how the requirements for such a form of procurement been met.

Does the Board regard the Tottenham deal to be a significant transaction which trigger the need for my prior approval? If so, will the Board request my approval and when?

Has the Tottenham deal been budgeted for in the 2022/23 budget? If not, why is expenditure on the deal not unauthorised or irregular within the meaning of those terms in the PFMA?

Kindly revert as a matter of great urgency by no later than Wednesday 29 March 2023.

Yours sincerely, ​

Ms Patricia de Lille, MP Minister of Tourism Date: 22 March 2023

_____________________________________________________________________

Letter from SA Tourism Board Chairperson received this morning, 24 March 2023

SOUTH AFRICAN TOURISM

Ms. Patricia De Lille 

Honourable Minister of Tourism 

Tourism House

17 Trevenna Street  Sunnyside

Dear Minister De Lille

SOUTH AFRICAN TOURISM AND THE TOTTENHAM HOTSPUR FOOTBALL CLUB TRANSACTION

The above matter and the letter dated 22 March 2023 refers.

The board has deliberated on the letter and proposes to submit its preliminary response with a view to providing you with an accurate recordal of the nature of the Board resolution taken on 31 January 2023. The Board gave an in-principle but conditional approval that SA Tourism procures the relevant approvals for the conclusion of the Tottenham Hotspur transaction. The Board must categorically point out that its decision did not give rise to a legally binding transaction between SA Tourism and Tottenham Hotspur. This is so because the Board was cognisant of the approvals that are required from both the Minister of Tourism and National Treasury prior to the transaction being consummated and becoming legally binding.

Honourable Minister refers to the resolution of the Board passed on 31 January 2023, and that the Board resolved through this resolution "to enter into a partnership deal with the Tottenham Hotspur Football Club." Honourable Minister would have, however, noted that the Board's resolution was conditional. In this regard, the Board approved the transaction, "subject to due consultation with the Minister of Tourism, the Department of Tourism, National Treasury and other relevant stakeholders." The conditions were imposed by the Board because the transaction legally required the approval of the identified stakeholders.

The Board records that the approval processes contemplated in the Public Finance Management Act 1 of 1999 ("PFMA") were yet to commence and be embarked upon by SA Tourism when the in-principle decision of the Board was leaked to the media resulting in the various engagements that ensued including the Parliamentary Portfolio Committee engagements.

Therefore, Honourable Minister, we humbly submit that factually, there is currently no "unlawful and invalid" transaction, as the transaction does not exist. The legal advice recorded in the letter is premised on there being a legal and binding transaction which is not the case given that the requisite PFMA approvals have not yet been sought. Moreover, there is no Tottenham transaction to be cancelled as none has been concluded. What exists is an in-principle decision to commence the required processes towards conclusion of the transaction.

We have taken note of the specific issues which the Honourable Minister requires the Board to address in relation to the procurement prescripts which were followed, as well as the PFMA prescripts - with specific reference to sections 53 and 54 thereof, and whether the transaction amounts to unauthorized or irregular expenditure as defined in the PFMA. In this regard, a detailed response will be submitted to the Honourable Minister on these aspects within the Honourable Minister's stipulated deadline of Wednesday, 29 March 2023.

Yours sincerely ​

Dr Thozamile Botha

Chairperson of the Board of South African Tourism  

New £42.5m Tottenham sponsorship deal gets conditional approval from South Africa tourist board

There looks set to be an influx of new money coming into Tottenham Hotspur in the near future if a proposed sponsorship deal is signed off

• 15:00, 2 FEB 2023

Get the weekly lowdown behind the scenes at Tottenham from our resident expert Alasdair Gold - sign up for free

We have more newsletters

Conditional approval has been given for South Africa Tourism to tie up a £42.5million sponsorship deal with Tottenham Hotspur, it was confirmed on Thursday.

Leaked documents emerged earlier in the week in South African media outlet Daily Maverick, who claimed that the country's government, through its marketing agency SA Tourism, was preparing to sponsor Spurs for 910million South African rand (£42.5million).

The media outlet claimed that they had seen documents from a presentation given by SA Tourism this month for a three-year sponsorship beginning next season and the matter was due to be discussed further by another presentation on Tuesday night (January 31) and that the deal was close to being finalised.

READ MORE: Pedro Porro struggles, curious case of Matt Doherty and Tottenham transfers that didn't happen

The news of the deal has caused some controversy within the South African sports community, with suggestions that such a large amount of money would be better spent on local sports development.

Then on Thursday, speaking to the media, South African Tourism's acting chief executive officer Themba Khumalo, while unable to confirm or deny the figures involved, did confirm that the deal had been given conditional approval.

"The board made a conditional approval because it commercially makes sense, but it needs communication with the stakeholders to make sure they're aligned," he said, as reported by South African media outlet news24 . "The stakeholders were not engaged because we were going to do so before the leak came out.

"We believe in the engagement, but there isn’t a signed contract with the entity. There was a conversation that led to the conditional approval. There's no signed contract, but there is an intention to. We need to do due diligence and follow government processes.

"We had to halt this conversation to have this conversation, so once we complete this one, we'll look forward. The other teams had tourism partners and Spurs didn't have one. We looked at every team in that tier."

One of those other teams are Tottenham's local rivals Arsenal, who have a partnership with the Rwandan tourist board.

It has been reported in South Africa that in exchange for the £42.5million investment, SA Tourism would receive kit branding, interview backdrop branding, match-day advertising, partnership announcements, training camps in South Africa, and free access to tickets and stadium hospitality.

The deal, which has reportedly been in the works for six years, would still need to be approved by South Africa's tourism ministry and receive approval from the national treasury.

Tottenham declined to comment on the proposed sponsorship when asked by football.london , a standard response on commercial matters.

Khumalo added that the deal was about promoting tourism to South Africa in the United Kingdom rather than being a football deal as the country is one of his country's premium travelling markets.

In response to the criticism, he also stated that SA Tourism could not use its mandated budget for other areas of government spending.

"The money that is invested in tourism isn't money that's required for other needs in the country. There are departments that are dedicated to that," Khumalo said.

"Ours is to spend money to persuade travellers to come to South Africa to spend money. That is what we're legislated to do. Sport and entertainment are audience aggregators, so people will pay money to have you access their product.

"Our deal has nothing to do with football because ours is to access the viewers who watch the football to become part of the travelling market to South Africa.

"We are accessing the audience in the English Premier League so that they can come to South Africa to spend money here through tourism. This deal is not isolation with other deals that we have in place because it's not about football, it's about audiences."

Every word Fabio Paratici said on Pedro Porro, Doherty and Tottenham teen who is 'a big talent'

• Pedro Porro struggles, curious case of Matt Doherty and Tottenham transfers that didn't happen
• Rennes transfer chiefs explain reasons behind Djed Spence loan from Tottenham on deadline day
• Bryan Gil explains exactly why he left Tottenham to join Sevilla on loan
• Tottenham's Pedro Porro transfer structure explained amid defender decision and youngster's move
• Most Recent

Former Tourism Minister, Lindiwe Sisulu and Harry Kane. Images via Backpagepics and Flickr.

Tottenham Hotspur: DA to send delegation on fact-finding mission regarding R1bn proposal

The DA says it will send a delegation to Tottenham Hotspur FC in London to find facts about the R1 billion proposal by Tourism South Africa.

The Democratic Alliance (DA) says South African Tourism’s plan to sponsor the English Premier League team, Tottenham Hotspur, with R1 billion is a slap in the face of every South African and an insult to the country’s tourism and travel sectors. 

The party will send a delegation to Tottenham Hotspur Football Club on a fact-finding mission regarding the donation. 

LATEST ON R1 BILLION DONATION TO TOTTENHAM HOTSPUR 

According to Daily Maverick report, Tourism South Africa is preparing to secure a deal worth R910,997,814.75 to sponsor to London-based football club.

The proposal along with a series of PowerPoint presentations revealed that should Tourism South Africa be successful the deal would be announced by President Cyril Ramaphosa during his State of the Nation address on 10 February.

ALSO READ: ‘No special visits’: Lindiwe Sisulu ‘denied’ access to see John Block

The party said its delegation from DA Abroad would go to the Tottenham Hotspur Football Club in London this week to ascertain precisely the deal’s status and if any money has exchanged hands. It also said it would do everything possible to oppose this lunacy.

DA Shadow Minister of Tourism, Manny de Freitas, said South Africa is in a power crisis; consumers are being crushed by inflation. There is no way the ANC will be able to condone such a decision in the 2024 election, not even among its staunchest supporters.

The Shadow Minister said they would be submitting questions about how the decision to sponsor Tottenham arrived at and what studies have been undertaken to justify the decision. 

ALSO READ: ‘No backbone’: Lindiwe Sisulu and Zweli Mkhize MIA during vote on Phala Phala report

“No doubt, this will also be a slap in the face of the sports fraternity, particularly the soccer sector, who do not receive much-needed funds to advance our sports teams. With R1 billion, the government can build a brand new soccer pitch in every town in the country! “It appears that this is yet another glitz and glamour ploy by Tourism Minister, Lindiwe Sisulu, to leave a mark in tourism before the potential redeployment to another department in a soon-to-be-announced cabinet reshuffle.” Manny de Freitas

ALSO READ: EFF wants Tshwane Mayor, Randall Williams to resign immediately

De Freitas said the money should rather be spent locally to improve the tourism sector so that it can thrive, create jobs and, in turn, contribute to the much-needed growth of the country’s economy.

In response to the report, Tourism Minister, Lindiwe Sisulu said the article is riddled with inaccuracies and untruths aimed at tarnishing my image. There is no doubt the report seeks to drive a political agenda rather to inform the public truthfully in line with journalism ethos.

🚨 Media Statement 🚨 I have noted the report by the Daily Maverick. Sadly, the article is riddled with inaccuracies and untruths aimed at tarnishing my image. There is no doubt the report seeks to drive a political agenda rather to inform the public truthfully in line with pic.twitter.com/8ERamEDJiD — Lindiwe Sisulu (@LindiweSisuluSA) February 1, 2023

ALSO READ: CONFIRMED: Here are the NSFAS allowances for 2023

Huureiendom: ken jou verantwoordelikhede. Klik hier!

Latest Posts

Are you an easy target for criminals? Find out

Ex-Kaizer Chiefs star Khama Billiat set for immediate SA return! 

Newspaper front page headlines from around the world – 29 May 2024

WEATHER UPDATE: Cool to warm weather with morning fog this election day

Daily Lotto draw: Four winners of Tuesday, 28 May’s jackpot – numbers and results

‘I still call myself a Pirates fan’ – Morton after hurting Kaizer Chiefs

We've detected unusual activity from your computer network

To continue, please click the box below to let us know you're not a robot.

Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy .

For inquiries related to this message please contact our support team and provide the reference ID below.

Wednesday 29 May 2024 | 7:25 am

South African Tourism wants to sponsor football club Tottenham Hotspur – is it a good idea?

• February 8, 2023

Please login to bookmark

No account yet? Register

View Bookmarks

Share This Article:

Picture: ANA files – Tottenham Hotspur players in Durban meet the the fans. But is a R900 million sponsorship of the UK football team over three years worth it for South Africa?

By Brendan Knott

South African Tourism (SA Tourism) is reported to be planning to spend US$52 million (about R900 million) to sponsor UK football team Tottenham Hotspur over three years. The proposal gives the country branding on the club’s kit, backdrop branding in interviews, advertising on match days, partnership status, local training camps and access to tickets and stadium hospitality. Football has a massive TV viewership and can attract big spending and big eyeballs. But is it an effective way to market a country? And is it money well spent? Brendon Knott researches nation branding and football. The Conversation asked him four questions.

Is this a good idea for nation branding?

Sponsorship of a sport team, event, or of individuals is an accepted and proven marketing communication tool. As countries, regions and cities are increasingly competing in the global marketplace for the attention of potential customers – in this case tourists – some destinations have also embraced sport as a marketing medium.

Typically, destinations promote themselves through associating with a sport event or team within their geographic location. In Spain, for example, Visit Catalunya sponsors Spanish club FC Barcelona.

It’s less common for a destination to use a more strategic approach to connect with a desired audience in another location.

Can it help tourism?

We need to understand that tourism destinations are “brands”, which compete against other brands for attention. SA Tourism therefore has a mandate and a budget to attract global tourism. There are a number of ways to promote a brand or engage with a target audience. Sport sponsorship has grown in favour as a marketing tool as it has shown an ability to break through the advertising clutter and get customers’ attention. It reaches them in a place where they are generally relaxed and can be engaged through a common passion for sport.

A sponsorship can achieve various objectives for a brand. Most commonly, the organisation seeks greater awareness of the brand, by making it visible on the players’ jerseys and signage around the stadium. This is most helpful for new or relatively unknown brands in a market, or to keep a brand top-of-mind among consumers in that market.

The second major objective is to enhance or change the brand image among a target audience through the association with a sport team. Brands typically benefit from a more favourable perception by fans of the team being sponsored. This is why the global sport sponsorship industry was estimated at US$77.69 billion in 2022 and is projected to grow at a rate of 8% over the next few years.

From what has been shared by SA Tourism, it appears that their objective is to reach the global audience that follows the football Premier League, and particularly reach the key UK tourism market. However, it is debatable whether this high profile, high cost approach is the best way to spend their marketing budget to boost international tourism.

Are there any precedents for this approach?

Two other high profile examples of destinations sponsoring football clubs in the past decade are Malaysia sponsoring UK team Cardiff City in a US$3.6 million deal in 2013; and Rwanda’s US$12 million a year sponsorship of UK team Arsenal FC, where “Visit Rwanda” is emblazoned on the sleeve of the team kit. Signed in 2018, the Rwanda agreement has been particularly slammed as an attempt at “sportswashing”. This refers to the covering up of human rights abuses within the African nation by trying to garner goodwill through the sponsorship.

In this case, the Rwandan president Paul Kagame is known to be a fervent supporter of Arsenal. Sports marketers would cite this as an example of a “chairman’s folly” approach to sponsorship. In the SA Tourism case, the strategic reasoning governing their decision has not been fully disclosed.

With the recent men’s football Fifa World Cup still fresh in our memory, the example of Qatar and sport sponsorship is also relevant. Besides multiple sport event sponsorships, the Qatar Foundation sponsors FC Barcelona, while Qatar Airways sponsors another European football giant, PSG. These sponsorships have often been questioned as attempts by the nation to deflect attention from criticism relating to workers’ rights and other human rights and freedoms. It is too early to assess whether the hosting of the World Cup aided the Qatar image or development of its tourism economy.

What are the potential downsides?

The media and public backlash at the SA Tourism sponsorship agreement indicates the lack of local public support for this initiative. Instead of viewing this as a good marketing opportunity that could bring in tourism revenue, there is the view that the government money could be spent better – either on sponsorship of local sports or on other projects altogether. Destinations should not aim to boost their “external” brand at the expense of the valuable “internal” brand strength.

The examples of Rwanda and Qatar, in particular, indicate that the negative media associated with perceived sportswashing diminishes the anticipated benefits. In the case of South Africa, it may appear as an attempt to counter the damaging global media coverage relating to the power crisis and other high profile challenges experienced in the nation. SA Tourism has given conditional approval to the plan, which is expected to go ahead in the next few months despite a growing backlash.

This article was first published on The Conversation

Renewal time? Lessons on Women, Peace, and Security in Afghanistan

Creating life from a life sentence: Sana’ Daqqah

Technical and vocational education – catalyst for sustainable development

More from this author, traditional wrestling in senegal – much more than a sport, it keeps culture alive, pan-africanism remains a dream – 4 key issues the african union must tackle, aka: slain south african rapper was a once-in-a-generation pop culture sensation, featured articles.

The African is a platform to showcase African thinking for a better world, featuring thought leaders from a range of fields sharing knowledge, thinking and creative solutions toward making the world a better place. Please see About The African for rules on republishing and how to submit your articles for publication.

About The African

Copyright © The African 2023  |  All Rights Reserved

Terms & Conditions

CAPE TOWN FOR CAPETONIANS

South African government pursues R1bn sponsor deal with Tottenham

Through its marketing agency, SA Tourism, the South African government is preparing to sign a nearly R1 billion sponsorship agreement with the English Premier League football club Tottenham Hotspur.

Given the country’s energy and economic crises, as well as the crumbling sports infrastructure, news about the proposed deal has sparked controversy.

Also read: Proposed state of disaster forewarned of risks with limited benefits

SA Tourism presented a proposal for a three-year agreement worth £42.5 million (roughly R900 million), beginning at the start of the 2023–24 English Premier League season and concluding at the end of the 2026–27 season.

A source informed News24 that the proposal was presented and voted for at a board meeting held at 8pm on Tuesday.

According to the presentation, in return for their enormous investment, SA Tourism would receive advertising on match day, partnership announcements, branding on interview backdrops, training camps in South Africa, complimentary tickets, hospitality and media exposure to the value of £277 million, or almost R6 billion.

News24 noted that a risk was brought up at a board meeting on 27 January, regarding Tottenham potentially being relegated to a lower division during the three-year contract, a risk that was countered in the proposal with a statement claiming that this was unlikely, given the historical performance of Tottenham Hotspur, and raising this will undoubtedly bring into consideration a possible bonus payment to be made by SA Tourism should Tottenham Hotspur perform better than expected.

An article by Daily Maverick alludes to the deal being announced by Ramaphosa during his State of the Nation Address on 10 February.

Also read: 

The City announces Cape Town’s calendar of events for 2023

Picture: Unsplash

Article written by Sarah du Toit

CapeTownETC

Subscribe to our Newsletter cheap cars for sale cheap cars for sale in western cape cheap cars for sale in cape town Joburg news News in Johannesburg Bikes for sale