Sportpesa returns with Sh682m goodies: Decision informed by betting firms desire to “come back to where they belong”

From Left- President FKF Nick Mwendwa, Ronald Karauri CEO SportPesa, PS Ministry of sports Peter Kaberia, Ambrose Rachier Gor Mahia FC, Dan Mule Chairman AFC and Gor Mahia vice chairman John Pesa during sponsorship announcement of the resumption of sponsorship by SportPesa at Ministry of Sports offices in Nairobi on Monday April, 22, 2018. [Jonah Onyango, Standard]

Top dogs AFC Leopards, Gor Mahia and football bodies KPL, FKF huge beneficiaries.

Betting firm SportPesa has announced they are back to some of the sponsorship deals they walked away from in January citing a new tax regime.

The company yesterday announced a three year Sh682million sponsorship package for Gor Mahia, AFC Leopards, Kenyan Premier League (KPL) and Football Kenya Federation (FKF).

However, Kenya Rugby Union (KRU) and Boxing Association of Kenya as well as Nakuru All Stars have all been left out.

SportPesa Chief Executive Ronald Karauri said the decision to come back was out of their desire to come back to where they belong.

“The last time we had a press conference, it was about giving bad news. Today, we have good news and considering that our brand is associated with sports, it is time to come back to where we belong,” he said.

He added: “We have just picked a few of the sponsorships we had because we are sure of seeing them through.”

Out of the Sh682million sponsorship, the KPL will receive Sh256million translating into Sh85million per year. This is Sh5million less than what the company was giving to KPL before they pulled out in January.

Gor Mahia on the other hand will receive Sh66million per year while AFC Leopards will pocket Sh52million per year.

The federation will be given Sh22.5million per year, money that will go to sponsor its shield tournament.

SportPesa thus becomes the new shield sponsor after an earlier deal with GOtv lapsed last year.

Karauri also announced that Hull City will tour Kenya next month to play against either Gor Mahia or AFC Leopards.

“AFC Leopards will play Gor Mahia on May 1 in a local derby at Afraha Stadium. The winner of the match will play Hull City on May 13 at Kasarani Stadium,” he said.

Sports Permanent Secretary Peter Kaberia confirmed that Kasarani will be ready by then.

“We want to assure everyone that the stadium will be ready to host matches by May 13. The other stadia, Nyayo and Kinoru will be finished by June,” Kaberia assured once again.

He thanked the betting firm for making a come-back into sports sponsorship and said the government will ensure that both parties respect their agreements.

“We are coming in to ensure that all the parties meet their side of the bargain. We will also bring in other sponsors in a method that promotes accountability,” he said.

FKF president Nick Mwendwa said the move by SportPesa was positive and urged them to do more.

“When SportPesa pulled out it was big blow for us and we are happy they are back. Though what they are giving us is not enough, it will still go along way to help us in many areas,” he said.

Gor Mahia and KPL chairman Ambrose Rachier said the move will help reduce pressure on clubs though he revealed that his club needs more money especially now that they are in the group stages of the Confederations Cup. 

Utilities

January 1-day SportPesa announced they were pulling out of sports sponsorships when a new tax regime came into effect.

35%-the percentage of tax betting companies are supposed to pay.