Club finances: Kenyan Premier League clubs survive from hand to mouth

On how the financial quagmire affects the team’s performance, the coach pointed out that the boys at the club are exactly what their name suggest- stars. “We have won two matches, drawn three and lost two. These are strong-willed players who can challenge for the league title if they get the treatment that they deserve.”

Club Chairman Peter Jabuya did not hide anything. “We don’t have money. We sincerely cannot make ends meet.”

The occurrences at City Stars mirror what is bedeviling many clubs in the KPL. It’s close to seven years now since the renaissance of club football and everyone thought this would mark the beginning of better football management at club level. Well, the more things change the more they remain the same.

The City Stars debacle is a reminder of the situation that Rangers FC got themselves in back in 2011 when sponsors Kenya Posta pulled out. The club was almost grounded as it could not foot operational bills while players quit en masse.

So if our clubs cannot pay coaches and players then what is this that has really grown in our football that everyone is talking about? Probably what critiques would be keen on is how the money KPL mints from sponsors and television rights holders is used.

KPL has Kenya Breweries Limited’s Tusker brand as its title sponsor and Supersport with the rights to air live matches across the continent.

KPL CEO Jack Oguda points out the sluggishness on the part of club administrations as the cause for what appears as stunted growth of the league. “The contracts we sign with league sponsors have leeway for clubs to source for additional sponsors,” says  Oguda, adding that it might be reluctance on the side of the clubs that causes this stagnation.

“At the beginning of every season,” says Oguda, “we advance the clubs with Sh1m for their preparations for the new season. They are then entitled to about Sh500,000 every month. This arrangement is decided by the very club chairmen who sit on the league’s executive board.”

Oguda’s assertion that clubs can source for additional sponsorship resurrects the thorny issue that almost caused AFC Leopards their position in the league in 2013 when they were reported to have sealed a sponsorship deal with pay-tv Zuku. What followed was a fierce exchange between Ingwe and KPL with the former ending up losing as they had to cancel their lucrative Zuku deal.

“Broadcast is one sensitive area,” offers Oguda. “Media rights once sold, no other club can get an additional media partner. As long as there’s no conflict of interest the clubs have a freeway.”

In seeking for additional funding, City Stars were reported to be in talks with the county government of Nairobi for a reported takeover at the beginning of this season. But club Jabuya sayshat the talks did not bear much apart from the media headlines they generated. “The county government has been sluggish in its approach to this matter and- like you- we are waiting to hear from them.”

After Western Stima, Nakuru Top Fry, Muhoroni Youth and Ulinzi Stars, City Stars becomes the fifth club to change coaches just seven matches into the 2014 Kenyan Premier League season. 

But while Mathare United are also struggling, others like KRA and KCB can sit pretty.