AK seeking ways of cushioning itself from recession

By Mutwiri Mutuota

With the federation coffers in fine health, Athletics Kenya (AK) is considering establishment of a commercially viable venture to cushion it from going bankrupt should sponsors pull out.

AK chair, Isaiah Kiplagat, who was briefing the Press after the federation’s Annual General Meeting (AGM) on Wednesday disclosed: "We are thinking of disposing of some of our assets and together with our savings, start a project that will keep us in stable position should anything happen.

"We are fortunate the global recession did not affect Nike otherwise we would have been in a lot of trouble."

Kiplagat was alluding to the long-term contract which ends in 2012 it entered with the American sports apparel manufacturer that is the financial mainstay of AK.

Financial report

In a financial report for the year ended December 31, 2008, presented before the AGM by treasurer Joseph Kinyua, AK earned Sh97.692m in income up from Sh80.191m realised in 2007.

Key cash cows for AK were Nike (Sh49.128m), international body IAAF (Sh9.49m in grants and a further Sh2.32m in prize money), Standard Chartered Bank (Sh18.103m), Kenya Commercial Bank (Sh7.136m), New KCC (Sh4.870m) and National Olympic Committee of Kenya grants (Sh2.029m).

AK also realised Sh2.219m from agents’ fees and Sh1.515m from renting its Riadha House headquarters in addition to other sources.

The federation’s total fixed and current assets were pegged at Sh78.409m while expenditure also increased from Sh76.180m in 2007 to Sh93.512m due to rising costs of organising track and field (Sh51.594m) and cross country (Sh14.216m) meetings. The previous year, the same events cost AK Sh40.954m and Sh10.422m.

Administrative expenses upped to Sh20.947m from 2007’s Sh19.023m with the federation spending more on athletics development where Sh6.754m was incurred in 2008 as opposed to Sh5.780m allotted in 2007.

Spend more

Consequently, Kiplagat announced the federation would spend more on athletics development with Sh250,000 already spent on training officials for next year’s Africa Athletics Championships.

Moreover, plans are under way to launch a Sh250,000 jackpot to be contested at the national track and field series that kicks off in May next year.

"We will also pay Sports Stadia Management Board to allow athletes to train for free at Nyayo National Stadium. They will only be required to register and be issued with a card by the secretary general," Kiplagat said of the plan hatched earlier this year.

Some of the federation’s assets earmarked for disposal include a parcel of land at Kasarani, Nairobi owed by AK.

 

 

Read all about: Kenya Athletics Kenya AK chairman Isaiah Kiplagat Africa Athletics Championships

 

 

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