Coca-Cola, KBL inch closer to Nyayo stadium branding deal
Children from Tasia School, Ngong, takes part in IAAF Kid's athletics programme at Nyayo stadium on 11th May 2012. Both Coca-Cola and KBL are seeking branding rights for the stadium, which is currently painted in the soda firm’s corporate colours. Photo/File
What you need to know:
KBL is seeking branding rights only during Kenya Premier League events at the Nyayo National Stadium while Coca-Cola is seeking exclusive rights to brand the facility.
The Competition Authority is seeking public views over the intention by Kenya Breweries Limited and Coca-Cola East Africa to acquire branding rights to the Nyayo National Stadium in Nairobi.
In last Friday’s issue of the Kenya Gazette, the authority said the public had one month to make presentations on the branding plan.
“Interested persons are hereby called upon to submit to the authority, within 30 days of the application of this notice, any written representations which they may wish to make in regard to this application,” reads part of the notice signed by Wang’ombe Kariuki, the authority’s director-general.
KBL is seeking branding rights only during Kenya Premier League events at the Nyayo National Stadium while Coca-Cola is seeking exclusive rights to brand the facility.
This means that Coca-Cola wants to reserve the right to brand the stadium, including painting, and be the sole supplier of beverages at the stadium during all events except national holidays, international sports competitions and Kenya Premier League fixtures.
KBL on the other hand wants to brand the stadium only during Kenya Premier League matches, meaning that the brewer’s signage will be limited to these events unlike the permanent branding by Coca-Cola.
Besides Nyayo stadium, KBL is also seeking branding rights for Tusker — its flagship product — in Chemelil, Hope Centre, City Stadium, Karuturi, Muhoroni, Oserian, Awendo, Thika, Afraha and Bukhungu stadiums.
The branding rights are aimed at boosting the marketing efforts of companies since sports events are usually broadcast to a large fan base.
The branding deals also allow the companies to exclusively supply their products during the events, raising their sales and locking out competitors.
The invitation gives the public and competitors the opportunity to scrutinise the deals and also launch their own bids for similar rights.
Coca-Cola, however, says that the process is a formality on its part because the government has granted it its wish as a compromise following the violation of its earlier contract in 2009.
The soft drinks firm had sought to rename Nyayo National Stadium to Coca-Cola Stadium in a deal in which it was to pay the Sports Stadia Management Board $1.5 million (Sh126 million).
Besides the fees, the public was to benefit from Coca-Cola’s undertaking to refurbish the stadium to international standards at its own cost.
However, the then Sports minister, Hellen Sambili, blocked the deal, arguing that the stadium should not lose its name.
This came after Coca-Cola had paid Sh16 million to the Sports Stadia Management Board, which falls under the Sports ministry.
The soft drinks manufacturer had also spent Sh8.5 million on painting the stadium with its corporate livery, bringing the total investment to Sh24.5 million.
The firm says the government has now agreed to give it exclusive rights to brand the stadium, altering its earlier naming rights in a compromise deal reached in the past few months.
“We had to find a way of enforcing the contract,” said Bob Okello, the head of Public Affairs and Government Relations at Coca-Cola. “We will recover the Sh24.6 million that had already been spent from this agreement which lasts for a year.”
Companies or individuals are eligible to bid for exclusive branding rights to stadia, with the board picking the highest bidder who also demonstrates technical competence and commitment to the development of sports in the country.
Coca-Cola’s new terms for Nyayo stadium mean that other parties’ branding contracts for Nyayo, like that of KBL, will be subordinate to the soft drink manufacturer’s rights.
“Other companies can brand for specific events at Nyayo such as the Kenya Premier League matches. This will, however, be under consultations with the board so long as our rights are not infringed,” Mr Okello said.
Coca-Cola is one of the largest sports sponsors in the world while KBL has been leading on the home front for years.
