Financial uncertainty as KPL starts

The Kenyan Premier League (KPL) season kicks off Friday afternoon with two matches lined up to officially launch the 2019/20 season.

Kariobangi Sharks host Western Stima at the Kenyatta Stadium in Machakos, while Sofapaka, who have moved all their home matches back to the Narok Stadium, welcome Posta Rangers.

But it is the financial stability of the league that is worrying especially after gaming firm giants and title sponsors SportPesa cancelled all sports sponsorships in Kenya after the government refused to renew their betting license due to a tax dispute.

SportPesa was, until recently, the league’s title sponsor pumping in Sh96 million last season. The company was also a direct sponsor of the country's two most popular clubs, Gor Mahia and AFC Leopards to a tune of Sh66 million and Sh52 million respectively.

KPL CEO Jack Oguda revealed to Nation Sport that they are in talks with several organisations, but is worried the league could grind to a halt soon if the financial situation doesn’t change.

“Without a sponsor on board we are facing huge financial challenges but we have been in touch with over 25 corporate organisations and recently zeroed on one who expressed interest. We are trying to hasten the negotiations, but talks of such magnitude take several months to conclude.

We are worried that if we don’t get a sponsor soon the operations of the league could be affected and we might be forced to stop midway but we remain optimistic that things will change for the better soon," Oguda told Nation Sport

Gor Mahia Chairman Ambrose Rachier, who also doubles up as the KPL Chairman, echoes Oguda’s comments saying; “As at now Gor Mahia is like an orphan because we have no sponsor and therefore no money. The league kicks off today (Friday) but we are not sure how KPL will pay match officials as well as other related costs.

As a club we already have challenges on traveling to and from the match venues and accommodation. We have been looking for sponsor and we are yet find one. The process of negotiation before getting a new sponsor takes a long time and we doubt if we will find any soon. The future is very bleak.”

Of the 18 teams taking part in the 2019/20 season, only around 10 can comfortably meet their costs. Bandari, Tusker, KCB, Ulinzi Stars, Posta Rangers and Western Stima are bankrolled by stable companies, while moneyed businessmen own Kakamega Homeboyz, Wazito and Kariobangi Sharks.

As the sugar industry in Western Kenya continues to plummet so are the teams in the region. Sony Sugar was almost folding up until they secured sponsorship for the season from a new Information Technology company originally from Hong Kong. The deal is reportedly worth Sh5 million for the season and that only offers temporary reprieve.

Nzoia Sugar continues to struggle as well as Sofapaka, who are sponsored by betting company Betika, but still struggle to meet their financial needs.

Mathare United, early last year landed a lucrative three-year sponsorship deal with betting company OdiBets worth Sh20 million annually, but that is in the process of being terminated, revealed club CEO Jectone Obure.

“With the tax issues in betting companies, OdiBets have hinted to us that they will not support us this season. They are struggling to meet the financial obligations and have requested for a mutual agreement to end the partnership," Obure revealed.

The Slum Boys open their campaign with a game against Bandari at the Ruaraka Stadium on Saturday and Obure admits the team is struggling to honour the match; “The game is in Nairobi but up to this point, we are really struggling to ensure we honour the match because honestly we do not have any money.

With no grants from the KPL, it will be a very tough season and the government either has to allow SportPesa back in business or support the league in the same magnitude the betting company was.”

AFC Leopards Chairman Dan Shikanda also urged the government to support the league; “We have the sports fund with a lot of money collected from these betting companies. Football directly employs very many youths and with the teams now struggling, it is the right time for the government to put the money where it should be, otherwise if the impasse persists then we are in for very tough times and it will even reflect in the performance of the national team since a large chunk of the players come from KPL clubs.”