KPL IN SH3M LOSS: League body fails to declare dividends; fan-behaviour remains its greatest challenge

AFC Leopards fans run for safety after the fans engaged police in a running battle against Sofapaka during their GOtv Shield Semi final at City Stadium, Nairobi on Monday 20/10/14.PHOTO.BONIFACE OKENDO

Kenya Premier League Limited (KPL)  recorded a pre-tax loss of Sh 3.09 million in the financial year ended December 31, 2013.

This is compared to a profit of Sh6.4 million made the previous year. Interestingly, KPL- whose principal activity is to run the country’s top league on behalf of Football Kenya Federation (FKF) recorded an increase in revenue to Sh202.6 million in 2013 compared to Sh 185.5 million in 2012.

The company also recorded an increase in administrative expenses of Sh20.1 million compared to Sh 19.8 million. KPL made a net loss for the year of Sh2,489,293 compared to a net profit of Sh3,703,590.

This means this loss has been deducting from retained earnings and thus the firm did not declare any dividend payments.

Financial statements of the year under review indicate that KPL has negative equity of Sh1,187,590 and the net liability position of Sh5,513,525.

An opinion by the independent auditors Mbaya and Associates mentions in its report that KPL’s continued existence is therefore, based on this precarious financial position, largely dependent on continued support from sponsors and other stakeholders.

Interestingly, 2013 saw a huge number of supporters troop back to the stadia to watch their favorite teams, with KPL recording over 2 million in ticket sales across the league. During this period, the main sponsors of the league were SuperSport and the Kenya Breweries Limited.

Other individual sponsors who either own teams or are shirt sponsors for other clubs are Brookside Diaries, Mumias Sugar Company Limited, South Nyanza Sugar Company, Chemelil Sugar Company, Kenya Commercial Bank, Kenya Airports Authority, East African Portland Cement Company, Kenya Commercial Bank, Karuturi Group, Real Insurance, Muhoroni Sugar Company, Kenya Defence Forces and Kenya Power.

“Our biggest challenges, however, remains the fans have sometimes expressed themselves in un-sporting manner when aggrieved. We seek and exhort your civility and respect to the outcome of the matches and stick to more responsible and civil way,” said James Musyoki, the then Chairman-KPL in his statements contained in the KPL Annual Report, 2013.

Figures indicate that an estimated 65-70 per cent of the total revenue that the league generates is through the sale of title and broadcast rights, which is directly injected back to the clubs as grants.

“This is not enough to run the entire season and we therefore appeal for other partnerships with the league and clubs,” said Jack Oguda-Chief Executive Officer-KPL.