MTN has confirmed its deal with Manchester United will prevent the club from participating in “competitor activities”.
The deal, speculated to be worth around R55 million, will see MTN become Manchester United's exclusive telecoms partner in SA. Over the last few years, the English Premier League team has participated in local soccer matches, twice playing local teams in the Vodacom Cup.
MTN SA's chief marketing officer, Serame Taukobong, says: “As our partner, they [Manchester United] have agreed not to participate in competitor activities.”
However, it is likely new match branding will start to play out later in the year, when MTN brings the Manchester United players out to SA. MTN cannot say when locals can expect to see the team land on the continent.
MTN has long been looking for an access point to start sponsoring local sporting events. Vodacom already has a strong presence in rugby and soccer, leaving MTN with local cricket and cycling as primary events.
However, MTN did beat out Vodacom to become the first African sponsor of the Fifa World Cup 2010, which gets under way in 83 days.
Making space
Craig Urquhart, editor of Project 2010, says - while the deal has raised some eyebrows - it is not a surprise that MTN has gone with such a high profile international club. “Manchester United is probably the most successful sporting brand globally,” he says.
Urquhart says a deal of this nature is to be expected, with MTN's new sponsorship focus turning to the soccer world.
MTN has not confirmed the value of the deal; however, it is speculated to be worth around R55 million. Manchester United's debt problems are no secret, and every small amount could help the club slowly climb into the black.
It is the third lucrative deal signed by the club in the last few months, including contracts with Telekom Malaysia and Turkish Airlines.
Development scheme
MTN says locally there are around 10.3 million Manchester United fans in the country, and 333 million cheering the team on internationally.
The mobile operator will now have the rights to sell branded Manchester United memorabilia and branded coupons in the local market. The company will also have access to exclusive mobile content and online inventory such as match highlights, player profiles and ringtones, available to customers for download through the MTN Play entertainment portal.
MTN says it will run competitions for its customer base where a few staunch fans of the club will get an opportunity to meet the players either here in SA, or at the team's home ground, Old Trafford.
The MTN Foundation will also partner with the Manchester United Foundation to develop an exchange programme that will see local kids get to show off their skills at Old Trafford, and be given instruction by international soccer stars.
The deal is exclusive for the next three-and-a-half years.
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