Since then however things have gone extremely pear shaped.
The first sign of trouble was on 2nd of January when Sportpesa announced that they were withdrawing all 600m of domestic sports sponsorship over the Government proposing to increase the rate of tax on the gross profits of gambling firms from 7.5% to 35%. Sportpesa was the main sponsor of both the Kenyan Rugby Union (KRU) and some local teams (such as the formerly Sportpesa Harlequins). There was some hope that one side would blink and that Sportpesa would reinstate their sponsorships, but when Sportpesa re-entered the sports sponsorship world they announced that it was purely football, and that they would not return to rugby. Immediately the KRU had to scramble for funds, and secured a shirt sponsorship deal with Brand Kenya (an arm of the Government) in late May for a 20m KS (£150,000) one-year deal. Although much less than they needed to run full operations, it was enough to tide the KRU over. Everything could return to normal now, right?
In addition, the Simbas have just scraped a lucky away win vs Morocco (see footnote) 24-28 in the Gold Cup, and based on that performance may not end up as Africa's representative in the repechage (notably they looked significantly too weak in the pack). The KRU has also threatened to pull it's 7s team out of the 7s World Cup, and from the African Gold Cup, should they not find some more funding.
All is not completely lost however, the Kenyan Parliament MP in charge of Sports, Culture, & Tourism has offered to step in and mediate the dispute, with a view to making sure that Kenya can field their most competitive side in the 7s RWC. Immediate concerns over withdrawal from the Gold Cup have been allayed with Tusker Breweries taking over as main shirt sponsor of the XV side, in a deal worth 53mKS (~£400,000). In addition the players seem to be moving to form a union and to remove some allegedly massively corrupt members of the KRU, who have allegedly embezzled most of the previous sponsorship deals, from rugby governance. Should they do that, it'll be yet another 'new chapter' in Kenyan rugby.
I'll make sure to keep Beyond The Cartel updated with new information as it emerges, for this is quite a rapidly developing situation. To get updates as soon as I have them follow @BTCBlurandski on twitter.
Footnote: It has also emerged that the Moroccan Rugby Union is in trouble, with their Government refusing to validate the MRU's audit due to unpaid payments. It's not the only Moroccan sport in that position, but either way is not good news. Between this and the Rugby Europe debacle sometimes T2&3 rugby makes you want to cry.
No comments:
Post a Comment