The Sunday News
Nkosilathi Sibanda, Sports Reporter
MARKETING and advertising executives from multi-national corporations frequently find themselves competing against each other in their eagerness to secure sponsorship contracts for prominent sporting events.
They go at great lengths to showcase their logos at prestigious events like the Olympics, Fifa World Cup, World Athletics Championships, tennis Grand Slams and other similar international competitions.
This is not confined to bigger competitions as it is also seen in elite football leagues in some countries. Even schools and tertiary sport gets sponsored.
Another trend that has been adopted by companies elsewhere is to sponsor and partner with athletes who do well in their career, in what is commonly known as endorsements. What is the catch in all this?
Advertising and marketing think tanks know the value that goes with a brand being a partner to the Olympics. It is more than the mere bragging rights.
Companies engage in sports sponsorships primarily to take advantage of tax incentives available in various countries. Tax incentives refer to the reduction or exemption of taxes for businesses that sponsor sports.
Regrettably, such a policy has not been put into effect in the country. For a long time, companies supporting sports have been complaining, urging authorities to reduce their tax obligations by at least 50 percent.
The list of these companies is endless and the outcry has been heard and spread to all corridors of policy implementation. Debates have ensued on the need to formulate sport tax rebates but, deliberations never saw the light of day.
The mention of tax rebates had brought excitement to corporate bodies that fund sports programmes. The concern on the non-availability of tax rebates has riled national sports associations who have revealed how they are failing to lure companies for sponsorship.
There is evidence of many sport codes that have since Independence never got any sponsorship. While football has had the best support.
However, there have been complaints that the funding is little and companies just do it for their corporate responsibility obligations.
If ever there is sponsorship, it comes when a team or an athlete has qualified to represent the country in an international tournament. That support, sadly doesn’t come with any tax rebate.
Companies that do such, only get an applause, build their public image and it ends there. Something has got to give in, said Tennis Zimbabwe president Walter Jere.
Tennis Zimbabwe is one national association that struggles to offer financial support to players who go for international tournaments. If a player qualifies for the big stage, it’s the parents that bear the financial brunt of participating. Jere says the only way to solve this is for Government to introduce tax rebates to companies.
“If one looks at the matter closely, most national sports associations are facing a hard time in finding companies to sponsor their activity. Funding is scarce because companies see no benefit in spending in sport.
“We are probably one of the few countries that have not put in place tax rebates in sport. With us in tennis, it has been the norm that parents fork out their hard-earned money to make sure players fulfil their dreams. What saddens us the most is that these kids carry the country’s flag high in international tournaments. We need a paradigm shift on that aspect. Surely something has got to give,” said Jere.
Volleyball, basketball, netball and handball also count in the list of sport codes that have never found joy in sponsorship. National associations that run these sport disciplines confess that a few businesses have opened their coffers to sponsor their numerous programmes locally or elsewhere.
Zimbabwe Handball Federation (ZHF) secretary-general Edson Chiworodza told Zimpapers Sports Hub speaks of the need to have tax relief or any incentive that will bring mutually beneficial synergies.
“It is known that we have been on the receiving end in as far as lack of sponsorship is concerned. To effectively run our activities, we need money and money is with the big corporates.
In so many workshops and seminars we have talked about this issue of rebates to companies. It is one of the ways that if such a tax relief was established, then we will see benefits.
“Yes, we have to call on Government and in particular our parent ministry to act on this,” he said.
Zimbabwe Volleyball Association technical manager Farai Mboto says a number of companies were willing to support them but, some changed heart, citing viability challenges.
In the debate, one issue that comes out prominently is the need to push Government on the national sports policy.
It is hoped that when a policy is implemented, problematic areas such as the tax rebates could be solved. — @NkosieLegend
