Graham Welch
Investec is discontinuing all Fedsure sports sponsorship programmes, including the high-profile naming rights deals Fedsure has with the Fedsure Stormers, Western Province Rugby and Fedsure Park Newlands.
Investec, which recently acquired Fedsure for R4,5-billion, also refused to renew Fedsure’s backing of Gauteng Youth Cricket when the R3,2-million contract came up for renewal at the end of March.
Fedsure group manager for marketing Sandy Barnes confirmed that Investec-Fedsure is looking for replacement sponsors. These sponsors will have to take over Fedsure’s contracts and meet exactly the same terms and conditions that Fedsure had with the rugby unions.
The rugby contracts and the Newlands deal are set to expire in 2004. Barnes refused to disclose the value of these contracts, but said neither the Stormers nor Western Province Rugby will lose any money as a result of the Investec decision.
The Stormers’ deal alone, however, is believed to be worth at least R25-million a year. The Investec announcement means that this investment has been effectively written off.
“Investec reviewed Fedsure’s commitments to Western Province Rugby and the Stormers and decided that rugby does not fit into Investec’s marketing strategy and brand positioning in South Africa,” Barnes said.
According to Fedsure the decision has nothing to do with the disappointing performance of the Stormers at the start of the Super 12 season. “The teams are very popular and provide excellent brand-building and marketing opportunities for prospective sponsors, so we do not believe that it will be difficult to find replacement sponsors to take over these sponsorships,” Barnes said.
The decision means that Newlands rugby stadium will undergo its third name change in four years. The last two changes were a result of mergers and acquisitions. The stadium’s name initially changed when Norwich bought rights in 1996; Fedsure then bought Norwich and changed the name.
Barnes said that naming rights of all Western Province rugby teams will be sold to the same company, but the Stormers and the stadium may gain different branding.
A Western Province Rugby (WPR) representative refused to comment on their sponsorship position. At the time of publication the WPR managing director Rob Wagner was unavailable for comment.
Gauteng Cricket’s Sheldon Miyet said Gauteng Youth Cricket has not yet secured another sponsor. He said Investec’s decision not to renew the five-year contract was not unexpected.
“We were warned during Investec’s takeover of Fedsure that there would be a review of sponsorship commitments. We are currently working on sponsorship proposals,” he said.
Investec’s entire top management was unavailable for comment on Wednesday and Thursday. African Eye News Service