A bitter row has reportedly erupted over the proposed renewal of Nelson Mandela Bay’s R18 million sponsorship of Betway Premiership club Chippa United.
According to the Daily Dispatch, a war erupted into a dramatic standoff in the Municipal council, with the political head of sports threatening to defer the city’s Ironman sponsorship if councillors delayed the football deal.
Councillors were said to be debating report to extend Chippa United’s anchor tenant agreement between the Mandela Bay Development Agency, the municipality and the sports team.
The report also sought approval for a sponsorship fee of R18 million [R6m per annum] for three years, subject to the metro’s logo appearing on the front of the players’ jerseys.
It is said, under the proposed new arrangement, the city would no longer pay the R7m annual relocation fee that formed part of the previous agreement.
The report warned that without an anchor tenant, the Nelson Mandela Bay Stadium would be unable to recover some of the costs associated with operating the facility, widening the gap between stadium expenditure and income generated from league matches.