SAFA looks to new commercial strategy as Castle Lager extends deal
17 Jul 2012
South African Football Association (SAFA) chief executive Robin Petersen has said the organisation is searching for additional commercial revenue after major partner Castle Lager renewed its deal, but on greatly reduced terms.
The beer brand will reportedly pay US$2.4 million a year for its new five-year sponsorship deal, compared to the $30.4 million it paid in total for its previous agreement. SAFA’s major partner portfolio consists of Castle Lager, banking group Absa and Puma. Petersen said SAFA will approach potential new partners in a bid to meet its annual $24.3 million sponsorship target.
“In the past we had two partners who put in R250m ($30.4 million) each (over five years),” he said, according to The Sowetan newspaper. “Now, in consultation with our partners, we have decided to mitigate our risk and increase the number. We will be bringing on board five sponsors to partner with SAFA plus an additional sixth partner, which will be the host cities where we (the national team) play our matches.”
Through its Castle Lager brand, South African Breweries (SAB) has backed the national team since its readmission to world football in 1992, when the company became its first sponsor. Commenting on the partnership extension, Vincent Maphai, SAB executive director of corporate affairs and transformation, said: “Over the last 20 years we have stood by them during their highs and lows and look forward to making a meaningful contribution, as they re-establish themselves at the top of African football, starting with the 2013 African Cup of Nations.”