Ken Borland

GQEBERHA, Eastern Cape – Vodacom’s 17-year title sponsorship of the Vodacom Origins of Golf Series makes them one of the Sunshine Tour’s most loyal partners, giving South African professionals playing opportunities through the winter, but the telecommunications company has always also been focused on the higher calling of helping develop people in general and supporting charitable initiatives in the communities they visit.

This week the Vodacom Origins of Golf Series is in Gqeberha for the two-day Pro-Am and then the professional tournament at Humewood Golf Club, and Tshego Malinga, the executive head of department for the Customer Business Unit Eastern Region, is focused on making sure the event touches many peoples’ lives.

“We have the ability to make sure profit meets purpose and I am a firm believer that the two are never mutually exclusive. At the centre of everything we do at Vodacom is the desire to enable our customers to live out their purpose. We do that by connecting them in an environment in which they can express their passions and aspirations.

“But it’s also important for Vodacom to be part of the development of South Africa as a whole, and sport plays a very important part in the development of the nation. We want to help people explore their talent and hopefully some of them can go on to become international icons. We also want to be helpful to the community and the Vodacom Origins of Golf Series has really assisted in the funding of many charities,” Malinga says.

This week’s Vodacom Origins of Golf Series Pro-Am at Humewood will be raising funds for the Maro Foundation, which was started in 2014 by Pamela Mabini.

A social and gender activist from Kwazakhele, Mabini used her corporate connections to distribute food, blankets, clothes, shoes and hygiene products to the homeless. Since then she has opened two facilities in Johannesburg for the rehoming of mentally handicapped, disabled or HIV-positive children who have been abandoned by their families,

“We have the ability to really help this NGO that is also helping in the fight against gender-based violence, so that’s our big focus for this tournament. We want to help those who have less access to things we might take for granted. We need a consciousness of the environment we operate in, we can’t just be focused on our share price.

“It is super special for us to be able to host this event and help the Maro Foundation in these times of Covid and all the hesitation around that. It’s a tricky balance making sure people are safe but also bringing them together. We really want the show to go on, so we can keep helping people. It’s an honour for Vodacom to be able to do that,” Malinga says.

Although not a golfer herself, Malinga is also acutely aware of the history of Humewood Golf Club, one of South Africa’s top courses and the host of many major tournaments.

“Vodacom, Humewood and the Eastern Cape are all very iconic brands, so this event is the amalgamation of very strong South African brands. We all have a responsibility to society and Humewood has a strong heritage in both Eastern Cape and Port Elizabeth society. It has credibility because of its heritage and this collection of brands people love makes it easier to galvanise them around their shared history and love for the province and city,” Malinga says.

The Pro-Am Dinner on the eve of the Vodacom Origins of Golf Series has already raised R25 000 for the Maro Foundation, with the fundraising efforts continuing all week.

SA Rugby CEO Jurie Roux said recently that every union whether provincial or international is going to join up with private equity partners either sooner or later. Rugby has been one of the slowest sports to embrace professionalism though and I can hear many fans wailing that private equity is going to ruin the game.

“Private equity in rugby will have a massive influence, it will probably control rugby. And yes, SA Rugby is in discussions with private firms, but I don’t think there’s a union that’s not talking to someone. We all live in a post-Covid world that is now a much smaller pond and there is the opportunity now for investors to buy things at much cheaper prices. Private equity is here to stay, you’ll either join early or late, but join you will,” Roux said in an online press conference earlier this month.

There is perhaps going to be understandable anxiety that rugby is going to end up in the same sort of mess as the Premier Soccer League has with the controversial sale of the famous BidVest Wits club to a little-known National First Division club, Tshakhuma Tsha Madzivhandila, based in Limpopo. Thanks to BidVest cynically pulling the plug based purely on financial considerations, 99 years of history is down the drain, a club that has won nine top-flight trophies and produced players such as Gary Bailey, Peter Gordon, Richard Gough, Sam Magalefa, Thulani Hlatshwayo and Benson Mhlongo for all intents and purposes no longer exists.

Never mind Western Province leaving Newlands, can you imagine the outrage if it was announced that the Bulls were moving to Polokwane and would henceforth be known as the Buffaloes?

But let me allay your fears by pointing out that rugby has mechanisms in place to prevent such stupid things from happening.

Before going to market, a union will split its assets between a commercial/professional arm, which will largely deal with corporate matters like sponsorships, advertising, marketing and broadcast deals, and an amateur arm which will hold assets like the stadium (whether they own it or have a rental deal) and ‘intellectual property’ like the team name.

Stakeholders can then buy shares in the commercial/professional arm. A private company can buy 25% of those shares and the union gets the cash, while the equity partner takes dividends while also hopefully driving up the commercial value of those properties.

Even though SA Rugby’s constitution now allows for private companies to own up to 74% of a union’s professional arm, as long as the ‘amateur’ administrators have done their paperwork correctly then properties like the team name or where they play should be totally protected even if the union is now a minority shareholder.

The Bulls have been amongst the first unions to really make private equity work for them, with Patrice Motsepe’s African Rainbow Capital Investments and Johann Rupert’s Remgro each owning 37% of the Blue Bulls Company. First prize to them because the influx of cash has allowed the Bulls to hire big-name coaches in John Mitchell and now Jake White, who is totally revamping the team with a host of quality additions to the player roster.

Perhaps the first thing for a union to ensure is that there is synergy between themselves and their private equity partners, so that they can work together to run a successful team.

Unfortunately there have been two unions in the news lately for getting it all wrong – the Eastern Province Rugby Football Union and the Western Province Rugby Football Union. Both those beleaguered unions seem to be suffering from a bunch of rank amateurs trying to run multimillion rand businesses.

After years of wrangling seemed to be coming to an end with the signing of heads of agreement to sell Newlands to Investec, WPRFU president Zelt Marais has unilaterally decided not to sign off on the rest of the deal, despite already taking an advance of more than R50 million from Investec. Interestingly, the WPRFU also owe Remgro R58 million for a loan. These are powerful enemies to have and one fears that the once proud union could be heading the same way as Eastern Province.

The embattled Port Elizabeth franchise just seems to lurch from one crisis to the next and fresh problems are now springing up between the company that holds the majority shareholding in the Southern Kings and the EPRFU.

Roux was not specifically talking about the Southern Kings or Western Province, but his message certainly applies to them when he said political interference tends to surface when administrators try to run their franchises as an amateur entity.

But to borrow from Saturday Citizen deputy editor Brendan Seery’s excellent Column, for every couple of Onions that have to be dished out to unions, there will be more Orchids given out to those who make private equity work.

Simply put, rugby is unable to survive this post-Covid world without them so, like the Wallabies and scrums, every union just has to find a way of making these partnerships work.