Safaricom cuts off rugby Sevens sponsorship

Corporate News

Athletics Kenya President Isaiah Kiplagat (left) and Safaricom CEO Bob Collymore toast during the launch of the third round of the Safaricom Athletics Series in Nairobi on April 2, 2015. PHOTO | MARTIN MUKANGU 

By DOREEN WAINAINAH, dwainainah@ke.nationmedia.com

In Summary

• Safaricom made good its threat to cut off federations that have been at the centre of corruption claims.
• The Kenya Rugby Union has been facing boardroom wrangles after accusations of financial impropriety and infighting led to the resignation of former chairman Mwangi Muthee and two other board members.

Safaricom has terminated contracts for the Sevens and the National Sevens circuit, dealing a blow to the Kenya Rugby Union.

The telco made good its threat to cut off federations that have been at the centre of corruption claims.

“Over the years we have closely monitored events at the union and highlighted our growing concerns with the lack of transparency and accountability of certain members of the board whose actions have brought the game into disrepute: a situation which jeopardises the Safaricom brand and which makes our continued sponsorship impossible,” reads Safaricom’s CEO Bob Collymore’s letter to the chairman of the KRU.

Mr Richard Omwela, the new KRU chairman, is faced with the decision by the mobile telcos to withdraw its sponsorship of the Safaricom Sevens edition.

“We feel that the ongoing issues affecting the organising bodies of the sport have shifted focus from the game and have decided to withdraw our support on that basis,” said Mr Collymore.

KRU has been facing boardroom wrangles after accusations of financial impropriety and infighting led to the resignation of former chairman Mwangi Muthee and two other board members.

The letter dated April 1 is to serve as the 30-day notice for termination of the series. Affected will include the Sponsorship agreement between Safaricom and KRU dated July 17, 2013 and that between Safaricom and Coast Rugby Sub Union, Kisumu Rugby Football Club, Kenya Harlequin Football Club, Mwamba Rugby Football Club and Nakuru Rugby Football Club.

The clubs will no longer be able to use Safaricom intellectual property and will be required to return or dispose of any existing promotional material that contains the company’s trademarks.

READ: Safaricom to withdraw rugby, athletics and football funding

The mobile company however said it will sponsor the third edition of the Safaricom Athletics series.

“We’re announcing that we will sponsor Safaricom Athletics in cash and kind for Sh120 million this series,” said Mr Collymore. The series will be categorised into three editions including Safaricom Relay Edition, Safaricom Track and Field Edition and Safaricom Long Distance Edition.

To safeguard its investment in athletics, the company called upon stakeholders and the governing body to ensure that the sport’s image remains untarnished even as issues of doping have been highlighted over the past few months.

Safaricom signed a Sh140 million-a-year deal with the 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 firm 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).

Safaricom first took on the title sponsorship of the Safari Sevens tourney in 2010.