After moving to Nelson Mandela Bay in 2014 and being bankrolled to the tune of R13m a year by the municipality ever since, Chippa United quietly relocated to Buffalo City last week without a word to city authorities.
Chippa players and staff, who left on May 12, were told to start packing in preparation for the club’s relocation as they geared up for their fixture against Mamelodi Sundowns in East London on Wednesday last week.
The news was first announced by Chippa coach Thabo September during a post-match interview in April in which he indicated the club would move to East London next season.
Neither the municipality nor the Mandela Bay Development Agency (MBDA), which manages the stadium on behalf of the metro, has been formally informed of the relocation.
Chippa boss Siviwe Mpengesi confirmed the move at the weekend.
He said a satellite office would remain in Gqeberha while the head office would be in East London.
Mpengesi secured a 20-year lease for the Buffalo City Stadium in 2023.
He said Chippa executive director Lukhanyo Mzinzi and others would remain in Gqeberha to manage relations with the municipality.
“We still have a contract that ends next year. What is imminent is that we will play more games in East London but still keep big games in Gqeberha.”
According to a municipal official, Mpengesi’s proposal involves playing three high-profile games in Gqeberha and the remainder of the 15 home fixtures in East London.
But he faces opposition from the municipality, and it is understood that negotiations are ongoing.
Known as the Chilli Boys, the franchise received a R6m-a-year sponsorship deal with the municipality and also received a R7m annual relocation fee tied to their status in top-flight football, for which the team has had to fight to stay out of relegation.
The agreement also provides an additional R500,000 for marketing.
The three-year contract ends in June 2026.
In a letter to sport, recreation, arts and culture acting executive director Kithi Ngesi, dated May 6, MBDA chief executive Anele Qaba said the agency had conducted an analysis and review on operational efficiencies of staging home fixtures at the stadium.
He said that for the 13 games played during the 2024/2025 season, the stadium had 105,000 attendees.
For the category A fixtures, 75,515 people attended.
A category A game is a match against Mamelodi Sundowns, Kaizer Chiefs or Orlando Pirates.
“The MBDA generated R1,174,586 in concession sales, of which 80% of the sales came from hosting the category A fixtures.”
He said the operational costs in hosting the 13 home games amounted to more than R2m.
“It is clear, based on the analysis conducted, that hosting category B games does not bring sufficient profitability to justify the spending made for operational requirements.”
He recommended that alternative venues be found for category B games.
In a March 25 letter to Qaba, Mpengesi said that after 10 years it was necessary to conduct a review to better manage their relationship.
“Chief among our proposals is that Chippa are released from playing smaller games at the Nelson Mandela Bay Stadium.”
He said it was not financially viable for the MBDA and Chippa.
“We are confident financial records ... display that this is a loss-making exercise, which comes with a significant administrative burden for no gain.”
He said revenue was only ever received from category A games, and Chippa was committed to playing these at the stadium.
“Our proposal in this respect would not affect the commercial front shirt sponsorship, and we would, in turn, look at reducing the relocation allocation by a reasonable amount of R1.5m, considering the commercial value of the remaining matches.
“As previously highlighted, the above can be achieved by limited contractual amendments which can be completed for the 2025/2026 season to be implemented ...”
When a Herald team visited the stadium on Thursday, they found the Chippa office doors locked.
Stadium employees confirmed they had heard about the move to East London and had not seen any staff for the last two days.
They said the team’s management had travelled to East London with the squad for the Mamelodi Sundowns game at the Buffalo City Stadium.
From there, the team travelled directly to Bloemfontein to face Marumo Gallants for Saturday’s final match.
A senior club official said staff were instructed to pack up their offices ahead of the games on May 11.
Earlier in 2025, Mpengesi referred to stadium executive manager Raaziq Poole as “a small boy” after Poole raised concerns about relocating an upcoming match against Orlando Pirates to East London.
In leaked emails, Poole warned that hosting the match at the Buffalo City Stadium would violate their contractual agreement and could lead to withheld payments.
Mpengesi announced the change during a radio interview, confirming the clash would be played in East London.
This sparked a heated email exchange, with Mpengesi allegedly threatening to have Poole removed.
It came months after a dispute over Chippa’s involvement in the Home of Legends Cup, an event organised by the MBDA.
The current Betway Premiership season started on September 14 and finishes on May 28, though Chippa play their final season matches on Saturday.
The municipality agreed to play seven of the 15 home games this season in East London.
The new season has no start date yet but usually kicks off in August or September.
The MBDA signed an anchor tenant agreement for the club to use the stadium.
Qaba said the anchor tenant agreement was not binding, meaning the club could make its own decisions at the end of the season.
“We pay them annually for what we get.
“They render a service, so they don’t owe us anything.”
Qaba said there were clauses in the anchor tenant agreement that Chippa breached which related to category A games and the number played in the city.
He said that if Chippa left the city, the contract would automatically be terminated and the search for a new team would begin.
“Some may see this as a negative, but we would be able to look for talent throughout the province.
“If you look at other provinces, they have more than one team.
“So Buffalo City will have a team and we will have our own.”
Qaba said to keep the stadium active, they would seek a new team to support or negotiate with other PSL clubs to host their category A matches in the metro.
“We can use the funds we paid to Chippa to buy games. I don’t foresee a problem should they move,” he said.
“The reality is that we have been concerned about category A games at the stadium, because smaller games don’t make money.”
With the anchor tenant agreement expiring in June 2026, discussions for a possible renewal were set for October.
Councillors have long criticised the soccer club for its poor performance and disappointing level of commitment to grassroots football development.
The council first decided to relocate and bankroll the soccer outfit from Cape Town to the Bay in 2014, and there were high hopes the team would ignite a soccer frenzy in the city.
However, this has failed to reach the heights envisioned.
The council approved the latest sponsorship renewal in November 2023.
An MBDA official, speaking anonymously, expressed hope that the team would leave, saying Mpengesi had grown too accustomed to getting his way.
“We have been squeezing him out. I am sure he is going to East London, his playground, where he will do as he pleases.
“If he thinks his leaving will affect [the city], he must think again because there are teams in Cape Town and Polokwane that would be happy to move here.
“How do you have someone who came to the city years ago but is still paid a relocation fee.
“He gets money for marketing, but what marketing does he do?
“If you look at the benefits to locals and [soccer] development, he’s done nothing because he’s not doing his job to market.”
A municipal official said that while the relocation had not been formally done, discussions were under way regarding agreement changes.
“Out of the 15 games the team will play in the season, Chippa wants to play its three [category A] games [in the city] and move the rest to East London, but the municipality has not agreed to this,” the official said.
“The current contract stipulates a 7/8 split of the games, where eight, including the three category A games, will be played in the city. He wants to change this. But discussions are still under way.”
Sport, recreation, arts and culture political head Sinebhongo Kwatsha confirmed the city had not received communication about the move to East London.
“I did not know they had permanently moved because we have not been engaged on that decision.”
Kwatsha said the agreement expired in June 2026 and a relocation would require council approval.
“Them coming to the city was a council decision, and therefore, when they decide to leave, they must write to us so that an item can be brought to council for discussion, and a way forward will be communicated back to them.”
Municipal spokesperson Sithembiso Soyaya said any changes to the agreement between the two needed to be formally communicated.
“We have a contractual obligation, and any changes must be of mutual consent and approved by the council.
“The municipality is not aware or has not been informed about a permanent relocation by the club, except to consider lower category games to move to Buffalo City.
“That matter is still under discussion.”
Soyaya said the relationship with Chippa yielded economic spin-offs and improved the city’s brand as a sporting destination of choice.
The Herald
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