So far this season, Tottenham Hotspur have had numerous ups and downs, with several key players out of form and a few injuries. On the transfer market, there was also somewhat decent, but the new arrivals have yet to show their full potential on the pitch.
But, apart from the actual game, this club from North London is also working hard in the business area, in terms of attracting new sponsors. Over the past few years they had some very successful deals signed with several partners, but this year they’ve failed to clinch a great deal with South Africa.
What Was the Deal About?
At the end of January and the start of February this year, it was reported that South Africa was very interested in sponsoring Tottenham Hotspur. Their intention was to follow in the footsteps of Rwanda, the United Arab Emirates, Malta, and some other countries to promote their country as tourist destinations.
It was estimated that the deal would have been worth £42 million over a three-year period from the start of season 2023/24. Tottenham’s side of the deal was to put the SA Tourism logo on its sleeves, among other things.
Not long after this proposed deal was published by the media, the Ministry of Tourism disclosed that it was looking to conclude a memorandum of understanding with the English club.
They didn’t reveal the actual worth of the sponsorship deal, but they said that it must first be approved by the SA government. South Africa sees Tottenham Hotspur as a major club that competes in the best domestic league in the world and they see a major opportunity to raise awareness of its best features.
South Africa’s Minister of Tourism Lindiwe Sisulu has stated that singing a sponsorship deal with Tottenham Hotspur will increase the country’s visibility as a tourist destination. According to her, this deal would have major economic benefits that can help the country to rise from recent struggles.
On the other hand, Tottenham Hotspur would drastically increase its yearly sponsorship income from the current £10 million sleeve deal with Cinch. In case you aren’t familiar with this company, it is a European used car business that partnered with the club in January 2021 with a multi-year contract.
Why Did the Deal Fail?
After the media published the major story and the Ministry of Tourism has given its take on the deal, many South African residents raised their concerns. Many believed that it was like gambling at a casino , as no one knew for sure whether the sponsorship deal would be beneficial for the country.
Critics said that the massive amount that the government wants to spend on a single tourist-sponsoring deal, could be better utilized in other fields.
South Africa is facing numerous problems regarding water shortages, daily power blackouts, and significant unemployment. Residents are desperate for the government to engage in fixing these issues sooner rather than later.
As a result of the public uproar, on the 7 th of February, the parliament’s tourism committee called for the sponsorship deal to be scrapped.
The same day, committee chairperson Thandi Mahambehlala stated that the deal ended there as everything about it was wrong. He also issued that the state prosecutor should open an investigation with immediate effect regarding the sponsorship deal with Tottenham Hotspur .
Mahambehlala also asked for the board’s acting chief finance officer to be released from his duties right away due to irregular appointment and an alleged conflict of interest.
Thebe Ikalafeng, Brand Africa chairmen, labelled the sponsorship deal as irresponsible use of tax-payers money. He also described it as a vanity investment and urged the SA government to spend the money on safety for travellers, maintenance, and lights.
The Democratic Alliance , an oppositional political party, stated that the proposed deal was a slap in the face of every resident in the country. They also said that seeing their hard-earned tax money as a sponsor on a football team is an insult to the taxpayers, South African tourism, and for the travel sector.
Some reports indicate that this shocking sponsorship deal with Tottenham Hotspur was in the making for around six years, which adds to the overall public dispute.