Monday 2 March 2015

SAFARICOM to withdraw rugby, athletics and football funding

Safaricom chief executive Bob Collymore says his company
will pull out of all sponsorship deals with three federations in
Kenya, denying them hundreds of millions of shillings in
funding.

Mr Collymore plans to cut off the football, athletics and rugby
federations, which have been marred by controversies and
claims of corruption that have led to a push for a regime
change to reform the three sectors.

Speaking exclusively to Business Daily , Collymore said that
the lack of transparency has dented the image of football,
athletics and rugby management and they have to put their
houses in order.

Safaricom signed a Sh140-million-a-year deal with Kenya
Rugby Union in 2013 to sponsor the local Sevens circuit (Dala
Sevens, Christie Sevens, Kabeberi, Driftwood and Prinsloo
Sevens) under the Safaricom Rugby Sevens Series banner.
Last year, the sponsorship agreement was renewed for a
further three years.

The mobile giant also sponsors the Safaricom Athletics Series,
which last year saw Sh47.5 million poured into 15 Athletics
Kenya and community races, in addition to funding national
trials and events such as the Sportsman of the Year gala
(Sh12 million in 2013).

“I can’t think of any solid corporate leader that wants to get
into space where you don’t have control over how your money
is spent. It’s not my own, it’s my shareholders’ money ...we
are custodians of shareholders’ money and I can’t think of any
sponsor who wants to get into activities where unethical
behaviour continues,” said Collymore.

Safaricom’s football sponsorship is limited to stadium,
security and team welfare matters thanks to the management
woes that dog the sport.

An attempt to fund a youth football tournament, Sakata Ball,
was scuppered in 2012 — after two successful outings in
which the mobile giant spent Sh130 million — when FKF
demanded 20 per cent of the sponsorship money.

The company has now ventured into sponsoring arts and
medical campaigns. Last week, the telco sponsored a jazz
festival in Nairobi.

Safaricom will not sponsor any federation until they
demonstrate proper management of the funds that are
allocated to them, the CEO said.

“There are things that demand our money; a lot of things are
demanding our money. We will move money to the federations
provided that people can demonstrate they know how to
manage it.”

Collymore said sport is important and once the federations
come clean, they will get behind them.

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