SARU fails to pay ad invoices
Cape Town - Kagiso Vantage, the sports sponsorship and advertising contracts arm of Kagiso Media, on Wednesday notified all sponsors of the South African Rugby Union (SARU) that it will not sell any advertising space to SARU during the 2013 Super Rugby competition, at Kings Park in Durban, and Newlands in Cape Town.
Kagiso Vantage holds all advertising rights to rugby matches at Newlands. In addition, the company is the exclusive agent of the Sharks (Pty) Ltd for the purpose of selling advertising space on the digital perimeter board in Kings Park.
The action by the Kagiso Group subsidiary follows the issuing of a summons against SARU for payment of invoices relating to the sale of advertising space at Kings Park and Newlands during rugby matches played in 2012.
SARU sponsors have been informed of Kagiso Vantage’s decision not to sell advertising space to SARU in a letter from Hayes Incorporated, the media group’s attorneys.
Costa Constantinou, CEO of Kasigo Vantage, noted: “Kagiso Vantage sells advertising space to SARU at Newlands and Kings Park that is then utilised by SARU sponsors to display branding, trade names and product advertising.
“Invoices submitted to SARU for payment for this space relating to games played in 2012 have still not been paid. Until these outstanding invoices are settled and additional outstanding matters resolved, Kagiso Vantage will not sell any more advertising space at these venues to SARU.
“We have obtained legal advice from SC Jeremy Gauntlett on the matter and are determined to maintain the ban on advertising space sales to this organisation until the matter is settled to our satisfaction.”
SARU sponsors have accordingly been informed that until the dispute is resolved their branding, trade names and product information will not be advertised within Newlands during Super Rugby matches. In addition, their advertising will not be displayed on the digital perimeter board in Kings Park during SARU matches.
Constantinou added: “It is regrettable that this action has to be taken and that SARU sponsors are affected in this way. However, we have shown great patience in our dealings with SARU, but to no avail. Our 2012 invoices remain unpaid.
“Hopefully, common sense will prevail and SARU will now take action to ensure payment is finally made.”