/ 31 May 2000

MTN pulls out as Pirates, Chiefs stand firm

OWN CORRESPONDENT, Cape Town | Tuesday 11.20am.

CELLULAR service provider MTN will no longer sponsor the Charity Spectacular football tournamnt following a decision by Kaizer Chiefs and Orlando Pirates not play in the event.

The two clubs — who landed a R120-million sponsorship deal with rival cellular company Vodacom last week — have contract clauses which stipulate that they are not allowed to play in events sponsored by Vodacom’s opposition.

MTN had similar clauses in their contracts with four other clubs, Jomo Cosmos, SuperSport United, Ajax Cape Town and Moroka Swallows, but withdrew the clauses after hearing that they contravene Fifa regulations.

On Tuesday, the PSL Board of Governors ordered that the Charity Spectacular go ahead as planned, with or without a sponsor. All clubs have committed themselves to participate in the event.

As far as the BP Top Eight is concerned, the competition will proceed with a commitment of all the top eight clubs to participate unconditionally.

The Board, however, did not stipulate that Chiefs will only play if the event is not sponsored by MTN, neither did they refer to the legality of the restrictive clauses in the clubs’ contracts and did not mention that MTN had withdrawn the particular clauses from their contracts.

MTN group executive, Rob Reynolds, on Monday sent a letter to Rob Moore of the PSL sponsorship committee detailing the company’s moves — and saying that it was unaware that Fifa regulations were being contravened through the clauses.

MTN released a statement on Tuesday saying that as the sponsorship of the Charuty Spectacular was being finalised last week, spokesmen of both Kaizer Chiefs and Orlando Pirates stated publicly that they will not take part in the event.

The clubs’ refusal to play in the competition is a direct contadiction of the National Soccer League’s offer to MTN, and the company requested written guarantees of participation from Chiefs and Pirates.

Reynolds said that the NSL’s attorneys have informed him that Chiefs and Pirates are not prepared to accede to the request and that MTN have no choice but to terminate their involvement.

Reynolds said that most of the sponsorship problems can be resolved if the NSL declares restrictive contract clauses as being detrimental to the game, and outlaws them with immediate effect to protect the interests of soccer.

The ball is now in the NSL’s court to step in and enforce the contract regulations as stipulated by Fifa. Chiefs and Pirates cannot be allowed to continue holding the League, and other teams, to ransom.