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MTN ditches Qhubeka despite 5th placed Tour de France finish
Citing tough market conditions, cellphone giant MTN has confirmed its withdrawal as headline sponsor of the MTN-Qhubeka cycling team.
MTN yesterday reported an expected 15 percent decline in earnings, due mainly to the weaker exchange rates. And the problem with worse than expected earnings is the trickle down effect. We saw it a couple years ago when Standard Bank pulled its sponsorship of cricket. This may have opened an opportunity for Sunfoil, but the value of the deal was far less. The repercussions of the MTN earnings will hit the cycling fraternity. And despite a well earned fifth placed finish in this year's Tour de France, MTN is pulling sponsorship of the Qhubeka team. And it is difficult to argue against the move given the company has spent R100 million since 2013. – Stuart Lowman
From Sport24