MOBILE network operator NetOne’s decision to pull the plug
on its sponsorship of Caps United, Highlanders and Black Rhinos was allegedly
influenced by one of the teams’ directors, who pestered the company to offer
revised figures based on the interbank rate.
Sources said the director (name supplied) wanted the
telecoms firm, which first started sponsorship of the three teams when the
official exchange rate was 1:1, to benchmark their new sponsorship package
using the prevailing interbank rate.
“NetOne had been an all-weather friend that actually gave
us more than the agreed figures during the course of the season as they were
alive to the fact that prices of goods and services kept rising. They could
have chosen to stick to the initial figure which had been eroded by inflation,
but the company increased its package without our input. It seems this still
wasn’t enough for him and he insisted that NetOne sticks to the initial
package, but use the interbank rate,” said the source.
Despite assurances that NetOne was committed to reviewing
the package to a figure that was acceptable to them, the team’s director
insisted on the revised interbank rate at every meeting, much to the annoyance
of the company’s decision makers.
“They were happy of Highlanders’ professionalism and it
might not even surprise some of us if NetOne continues bankrolling Highlanders.
I am sure even their (Bosso) previous sponsors BancABC would not have pulled
out had it not been for the frustration that came from these other teams,” said
the source.
NetOne though has not formally communicated its position to
the three teams, but sources told the Herald that the mobile network
operator was pulling the plug to concentrate on fighting the Covid-19 pandemic.
It was paying salaries of Caps United and Highlanders’
players and technical teams as well as providing tracksuits and playing kit,
and paying accommodation and transport costs for their away matches.
“While NetOne has a demonstrable record of contributing
immensely to the development of football in Zimbabwe, the recent developments
affecting the entire world have made it difficult to maintain a long term
sponsorship commitment to Highlanders and Caps United. As a business, the
operating environment has been constrained with the overall economic landscape
expected to shrink, thereby affecting revenue generation capacity for most
companies, NetOne included. The uncertainty brought about by this pandemic
makes it imperative to review our long term financial obligations and re-align
our strategies and expenditure to high priority areas.
“As such, maintaining long term football contracts is no
longer tenable. It is against this background that NetOne has decided to
discontinue the three-year sponsorship, particularly as they relate to the 2021
football season. NetOne will fulfill its contractual obligations and will
process the full sponsorship amount to both teams as it relates to the 2020
football season. However, notice of termination will be served for the 2021
season,” sources told the Herald.
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