Ratepayers deserve value for Chippa United sponsorship millions

It has become abundantly clear that Nelson Mandela Bay councillors have had enough of the attitude — real or perceived — shown by Chippa United bosses towards the municipality.

Nelson Mandela Bay City Hall. Councillors clashed with senior Chippa United officials during a virtual presentation to the sport, recreation, arts and culture committee on Thursday
Nelson Mandela Bay City Hall. Councillors clashed with senior Chippa United officials during a virtual presentation to the sport, recreation, arts and culture committee on Thursday (RANDELL ROSKRUGE)

It has become abundantly clear that Nelson Mandela Bay councillors have had enough of the attitude — real or perceived — shown by Chippa United bosses towards the municipality.

That frustration was on full display at a sport, recreation, arts and culture committee meeting on Thursday, at which irate councillors clashed with the Chilli Boys’ top officials for opting to log in virtually rather than attend in person to present their report.

The presentation was meant for councillors to note the soccer club’s sponsorship request, which forms part of a relocation deal struck with the metro in 2014.

This request comes at a sensitive time, as the National Treasury is moving to stop municipalities from classifying financial support for events as sponsorships, directing that the spending instead be treated as payment for services rendered to the city.

The matter has yet to reach council for approval, as the city considers how to handle commitments made to various organisations under existing contractual agreements.

Granted, technology enables cost-saving measures such as hybrid and virtual meetings, but Chippa’s relationship with the city is already hanging by a thread.

Earlier this year, the club quietly packed up and relocated to Buffalo City, without so much as a courtesy call to the Bay municipality.

Though it later backtracked, the move further strained an already fraught relationship between the city, the Mandela Bay Development Agency’s stadium management team and Chippa United.

The current three-year agreement between the city and Chippa, which runs from July 2023 to June 2026, includes a R7m relocation fee, R6m in sponsorship and R500,000 for marketing.

The club is required to make an annual presentation to the committee to secure funding for each financial year in line with that contract.

At last week’s meeting, councillors believed that club boss Siviwe “Chippa” Mpengesi should have been compelled to appear in person to account for past contract breaches, explain the ongoing drama and justify why the municipality should continue to fund the team.

Mpengesi, for his part, argued that councillors had disrespected Chippa officials in how they handled the matter.

This impasse must be resolved. A partnership cannot be fruitful without mutual respect.

But above all, ratepayers deserve value for the millions poured into this arrangement, and that will only be evident when Chippa United makes a tangible, sustained contribution to developing grassroots football in the Bay.

The Herald


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