12 March 2010
	SPORT SPONSORSHIP Just wide of the posts By Thebe Mabanga

Media and marketing group Primedia appears to have lost interest in its 40% shareholding in Kaizer Chiefs. The company is publishing no value for the stake and has relegated the investment to its corporate social investment, rather than reflecting it as a financial investment. The stake was purchased with much fanfare in 1999, with the idea of possibly listing Kaizer Chiefs. Events of the past decade, in which listed clubs in England have lost significant value and have even been taken off the market, seem to have doused enthusiasm here. Primedia was delisted in 2007 and no longer publishes its financial results. In its past few published sets of results, it lists Kaizer Chiefs as an associate company but lists no carrying value in the 40% shareholding. Under international financial reporting standards, it would be required to list the carrying value. In its 2005 annual report, Primedia notes Chiefs' brand strength and an improbable 14m fan base and states "the intention... to start leveraging this brand through various brand extension opportunities". It lists Chiefs' operating assets at R15,6m and liabilities of R9,7m. The only commercial benefit Primedia appears to derive from the stake is handling the club's licensing and merchandising (as well as the Springboks and some Super 14 rugby franchises) through its Signet Sports licensing division. Kaizer Chiefs is SA's most commercially successful club, with more than 60 league and knockout trophies. But, along with fellow giants Orlando Pirates, Chiefs have struggled in recent years, partly owing to a failure to replace quality players lost to foreign leagues. It has watched as SuperSport United has romped to three league titles in a row. Primedia chairman Paul Nkuna says the option of disposing of the stake "had not entered [the board's] mind" and refers all queries to CEO Kuben Pillay. Pressed for details on publicly available information before delisting, Pillay would only say: "We do not control the operations of Kaizer Chiefs but are a passive minority investor, hence the lack of commentary from us." Chiefs marketing director Jessica Motaung did not answer requests for comment.