VWSA buys First Division soccer club
September 2, 2005
By Roy Cokayne
Pretoria - Volkswagen South Africa (VWSA), the Uitenhage-based motor manufacturer, has acquired Mvelaphanda Golden League (First Division) side Maritzburg United as part of a multifaceted commitment to soccer in the Nelson Mandela Metro.
"We are aware of our responsibilities as a corporate citizen of the metro and the Eastern Cape," said Jolyon Nash, VWSA's sales and marketing director. "We have decided to purchase the Maritzburg United franchise and relocate it."
Volkswagen, VWSA's parent, sponsors German Bundesliga side VFL Wolfsburg in its hometown and assisted in the development of a new stadium in Wolfsburg when the side entered the league.
The move by VWSA makes it the fourth company in the country to take an ownership interest in a soccer club as opposed to the traditional limited sponsorship involvement adopted by most companies.
Primedia has a 40 percent stake in Kaizer Chiefs, while Bidvest is part owner and official sponsor of Wits University, which is plying its trade in the Mvela Golden League after failing to avoid the dreaded relegation from the Premier Soccer League (PSL). Supersport United is owned by M-Net.
VWSA also announced it would sponsor Moroka Swallows, one of the slumbering giants in the PSL.
Bill Stephens, a VWSA spokesperson, said the price paid for Maritzburg United was not being disclosed, but speculation is that it cost the motor manufacturer R2 million. Stephens was also not prepared to comment on how much money VWSA would invest.
Although Maritzburg United is coached by former Bafana Bafana coach Trott Moloto, VWSA as the new owner is bringing on board another former Bafana Bafana coach, Ephraim Shakes Mashaba, to guide its investment to stardom.
Stephens did confirm that VWSA was discussing possible future links between VFL Wolfsburg and the company's soccer commitments in South Africa.
In terms of the transaction, Maritzburg United will retain its name until the end of the season in accordance with Fifa and local PSL rules. A new name will be unveiled for the 2006/07 season.
Nash said VWSA did not take lightly the decision to invest in soccer and did not see its involvement as a charitable initiative but as an investment that had business potential in the medium to long term.
"The car market is evolving to reflect the demographics of our country, which means we have to expand into areas in which we have not previously been involved.
"Football provides a perfect platform from which to market our products to a younger, more vibrant and upwardly mobile audience who may not be able to purchase cars today but will definitely be in the market in the not too distant future," he said.
Nash stressed the decision to acquire the club was part of the motor manufacturer's comprehensive investment in football, which would also include a local youth development structure and wider sponsorship of the PSL.
"While simply sponsoring a PSL side would have been the right decision from a marketing point of view, we are aware of our responsibilities as a corporate citizen of the Metro and the Eastern Cape.
"The city needs a professional soccer side that can bring a culture of high-standard football to the region in preparation for the city possibly hosting World Cup 2010 matches," he said.
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