With further criticism of Chippa United’s lacklustre performance by the city’s political leadership on Wednesday, a multimillion-rand sponsorship for the soccer side hangs in the balance.
The council is due to make a final decision next week.
The sponsorship agreement was debated at a mayoral committee meeting, with roads and transport political head Bradley Murray questioning whether it was necessary to continue ploughing funds into a team that regularly faced relegation from the DStv Premiership.
Councillors are considering a proposal for the municipality to continue bankrolling Chippa United for a further three years at a cost of R13.5m a year.
The deal would involve a R6m-a-year sponsorship and an anchor tenant agreement — called a relocation fee — that guarantees the team R7m a year if it remain in top-flight soccer.
An additional R500,000 for marketing would also be given to the franchise, known as the Chilli Boys.
However, it was agreed that the relocation fee and marketing expenses be reviewed going forward.
“If we look at their performance, I don’t know if it is something we should encourage by pouring more money into the team,” Murray said.
He suggested the municipality look into supporting a first-division team made up of local players and helping it gain promotion to the top flight.
“What happens if Chippa United gets relegated this season? What will we fall back on as a city because we will have no team?”
When contacted, Chippa United executive director Lukhanyo Mzizi said the club had presented what it had done to develop local players at a sports, recreation, arts and culture committee meeting in June.
“We presented the number of players that are in circulation in the PSL who have played for Chippa United and that is more than 40.
“In the National Football League, we have got more than 200 players we have developed.
“We did all these things without proper support and facilities required for development.”
Mzizi said the funding the club received from the metro did not include development but only focused on the main team.
“We enjoy the support of the municipality and we take this criticism from councillors positively and we will ensure that we are not relegated,” he said.
At the meeting, corporate services politics head Yolisa Pali said it was important for the metro to continue its support of the Chippa because the team played a big role in assisting communities.
“I’m not saying [Murray] is incorrect for saying we should open our eyes about the sponsorship, but we must appreciate that the team is assisting our communities.
“It’s not a bad idea to have another team but I would like us to continue supporting Chippa, and even increase the sponsorship if we can, because the team is now not relegated.”
Public health politics head Thsonono Buyeye said his concern was that the new season was about to start and no decision had been made.
“We are considering a serious item that requires the council’s approval of the funds.
“In the event that council does not approve it, we would be throwing Chippa United under the bus because where will they go find sponsors from in such a short period?”
Buyeye said the deal should have been presented to the committee earlier.
“It is unfair that we are in this situation.”
Deputy mayor Babalwa Lobishe said she understood the concerns raised and hoped sports, recreation, arts and culture political head Bassie Kamana would meet the team to iron out problems before the council meeting.
“The meeting will touch on our brand, which is said to be tarnished by its association to the team as alluded to by councillors and the fact that there is a possibility of relegation.”
Lobishe said she supported the deal for now because it was not the responsibility of the team to ensure tangible economic spin-offs.
“Chippa United must also state in writing what their development plans are for players that will be scouted in the city.
“He [Chippa boss Siviwe ‘Chippa’ Mpengesi] must also address the issue of stability in the team with him firing people [coaches] every now and again.
Kamana said the metro was exploring options in terms of finding a first-division team to support.
“We do everything to market games at the stadium by going into townships and mobilising local teams to go watch games.
“The support is there and those who say the stadium is empty probably have not been to a single game this year.”
Safety and security politics head Stag Mitchell said he agreed with Murray.
“We have a home-grown Eastern Province Rugby Union competing in the first division.
“All they need is a cash injection from the city and big businesses we deal with.”
City manager Noxolo Nqwazi said sports, recreation, arts and culture directors should prepare a report that clarified the issues raised by councillors.
“If we do not move the item to council we could be found non-compliant to our own agreement that we signed.
“There is a long-term agreement, in this case 18 years, and as per that agreement, it has to be renewed every three years by the council.
“At some point, things get confused along the way but we need to give the mayoral committee time to look at the actual agreement.”
The 18-year agreement, beginning with the 2014/2015 season, ensures the city funds the team for that period but the sponsorship amount is reviewed every three years.
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