Government to ink R1bn deal to sponsor Tottenham Hotspur in hope of attracting tourists to South Africa.
In an effort to bring more tourists to the country, the government of South Africa intends to sign a contract worth nearly R1 billion with Tottenham Hotspur, the dominant team in the English Premier League.
According to a report published today in the "Daily Maverick," the South African government is preparing to sign a contract worth R910 997 814.75 through its marketing agency, SA Tourism.
The deal is said to be for 36 months, and it appears that SA Tourism's acting CEO, Themba Khumalo, presented the plan for the first time on January 27.
According to the "Daily Maverick" story, Tourism Minister Lindiwe Sisulu wants the deal done before President Cyril Ramaphosa's upcoming Cabinet reshuffle removes her from the tourism portfolio, as is to be expected.
The sponsorship agreement between SA Tourism and Tottenham Hotspur FC would be worth £42.5 million over three years, which is equivalent to R910 997 814.75, or just under a billion rand, according to a PowerPoint presentation that "Daily Maverick" has access to.
The phrase "Daily Maverick" refers to the agreement that Ramaphosa will announce in his State of the Nation Address (Sona) on February 10.
The publication claims that the first PowerPoint presentation explains that Tottenham Hotspur, more commonly referred to as Spurs and the home of England captain Harry Kane, is the "8th most valuable football club brand globally."
It says that SA Tourism would sign a sponsorship deal with a Premier League soccer team, following in the footsteps of other "DMOs," which are organizations that promote places as travel destinations.
It identifies similar sponsorship agreements with Abu Dhabi's sponsorship of Manchester City, Malta's sponsorship of Manchester United, and Rwanda's sponsorship of Arsenal.
The £42.5 million agreement could be extended for an additional year, starting in February 2023 and ending in June 2026.
According to the presentation, SA Tourism would receive media exposure worth nearly R6 billion, or £277 million, in exchange for this R1 billion investment.
