“The most recent three-year sponsorship agreement between the Msunduzi municipality and Maritzburg United (MUFC) was due to expire at the end of 2024,” reads the document.
“Due to the relegation of MUFC, the sponsorship agreement will be terminated as one of the conditions of the sponsorship was for the club to remain in the Premier Soccer League (PSL).”
In the proposal signed by city manager Lulamile Mapholoba it is said the partnership with Maritzburg boasted gross multimedia exposure to the value of R55.2m per season. The municipality expects a similar level of exposure with Royal.
The city has recommended the council grants approval for the sponsorship for three years, starting in the 2023-24 financial year.
“The amount for the proposed sponsorship agreement for a period of three years is R9m per annum (VAT Exclusive), (plus) CPI in the two (2) outer years,” the document states.
“In addition to the cash sponsorship, the agreement will include the cost for the annual maintenance of the Harry Gwala Stadium to keep it in compliance with PSL standards.”
TimesLIVE
Support independent journalism by subscribing to TimesLIVE Premium. Just R20 for the first month.
Royal AM offered R27m to replace Maritzburg United at Harry Gwala Stadium
Image: Darren Stewart/Gallo Images
An enticing R27m has been offered to Shauwn Mkhize’s Royal AM in a bid to lure the DStv Premiership club to replace Maritzburg United at Harry Gwala Stadium.
This offer of a sponsorship deal has been made by Msunduzi local municipality and will be discussed for approval by its council in a meeting on Wednesday afternoon.
If it is approved Royal will receive R9m annually over three years from the municipality and will use the Harry Gwala Stadium as a home venue free of charge.
This is the same deal United enjoyed before their relegation from the Premiership at the end of last season, an agreement that is ending due to their drop to the Motsepe Foundation Championship.
AM, owned by businessperson Mkhize, have an expensive base at their Royal Ranch in Pietermaritzburg but have played their home games in Durban, mostly at Chatsworth Stadium, since their purchase of Bloemfontein Celtic's top-flight status in August 2021.
In the document stating the agenda for Wednesday's meeting, which was shared with Msunduzi’s councillors and which TimesLIVE has a copy of, the municipality confirms the agreement with Maritzburg United is being terminated.
Cosafa Cup can be Kaizer Chiefs-linked Rowan Human's time to shine
“The most recent three-year sponsorship agreement between the Msunduzi municipality and Maritzburg United (MUFC) was due to expire at the end of 2024,” reads the document.
“Due to the relegation of MUFC, the sponsorship agreement will be terminated as one of the conditions of the sponsorship was for the club to remain in the Premier Soccer League (PSL).”
In the proposal signed by city manager Lulamile Mapholoba it is said the partnership with Maritzburg boasted gross multimedia exposure to the value of R55.2m per season. The municipality expects a similar level of exposure with Royal.
The city has recommended the council grants approval for the sponsorship for three years, starting in the 2023-24 financial year.
“The amount for the proposed sponsorship agreement for a period of three years is R9m per annum (VAT Exclusive), (plus) CPI in the two (2) outer years,” the document states.
“In addition to the cash sponsorship, the agreement will include the cost for the annual maintenance of the Harry Gwala Stadium to keep it in compliance with PSL standards.”
TimesLIVE
Support independent journalism by subscribing to TimesLIVE Premium. Just R20 for the first month.
MORE:
Another South African joins MLS club in the US
No support for players with mental health issues at PSL clubs: Mabasa
About 80% of Bafana squad did not play in 2022-23: Ramoreboli on Cosafa third place
Pirates ‘surprised’ by approach, but letting Dzvukamanja join SuperSport
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos