Africa-Press – Uganda. Bul’s financial muscle fits them among the top three clubs in the StarTimes Uganda Premier League behind Vipers and KCCA.
But, just like most football clubs in the country, Bul barely make any meaningful profits, and only rely on Bul Bidco – the cooking oil company.
The club management has picked some lessons from the fall of clubs that operated under similar models with a healthy financier in the past but went under.
Bidco’s comfort
There are four models that define football clubs; privately-owned, community, hybrid and institutional clubs.
Bul fall under the latter as they are associated with their chief financiers – Bidco Uganda, with Ronald Barente and Yesho Titus registered as the guarantors.
Bul chairman, Barente, feels the club is comfortable at the moment but is aware of the uncertainty that the future can throw at them.
“We’re doing well at the moment,” he told, “but I always tell my people to plan for the future because the company may not support the club forever.”
Previously, giants like Nile, Nytil and Tobacco shook the country from Jinja but quickly disappeared when their mother companies’ businesses struggled or changed their community-social-responsibility (CSR) strategy.
Bidco provides almost 100 per cent of the club budget with about Shs1.6b annually. That figure hit the Shs2b-mark when they went to the continent last season.
Big spenders
Bul have budgeted to spend about Shs1.6b this season, a decrease by shs400m from what they spent last season while honouring the Caf Confederations Cup.
The club spend about Shs648m to pay the salaries of 54 staff members, including 35 players who earn between Shs500,000 to Shs1.5m per month.
They spend about Shs45m a month transporting players for breakfast, then to the training ground, lunch and back home on a daily basis. Each of the five to six daily trips costs the club about Shs96,000.
Additionally, the club spend about Shs17,000 for breakfast for each of their 45 playing, coaching other staff involved in training sessions.
Normal away matches to Kampala and the central region cost the Jinja club about Shs800,000 on transport but could balloon to Shs5m and Shs7m for trips to Mbarara and Arua.
In those trips, each player that is named on the team sheet is entitled to Shs40,000 for match day allowance and Shs50,000 for the technical team. On top of that, the club reserve about Shs10m for every win in official competitions.
Each player named on the team sheet averagely receives about Shs200,000 as winning bonus, while the coaches get almost double the amount depending on their contractual terms.
Alternative taps
Clearly, Bul’s budget is among the top three but Barente acknowledges that the only way to secure the future of the club is by reducing its heavy reliance on Bidco.
Under his first four-year term, the club have started reaping from their investments by winning silverware – two Fufa Junior League trophies (2019 and 2023) and a Uganda Cup in the 2021/22 season.
That has grown their fanbase but their meagre Shs15m collections and Shs8m from the sale of merchandise shows there’s more work to do.
Their best-attended games against Villa and Vipers earned the club Shs3m and Shs2.5m, respectively.
Bul have not sold a single player despite churning out some top talents from their junior structures.
However, Barente believes that should be their main revenue source in the coming years.
“We need to diversify and find more money so that the club can be able to generate its own revenues to fund the budget,” he acknowledged.
“We’re looking at more sponsors to come on board but are focusing more on player sales to Europe.
The club transferred, arguably, their best product Simon Oketch to Ethiopian Insurance on a free transfer. They wanted to build bridges for more in the future.
“We let Simon go because we wanted to make a relationship with the agents. We’re now targeting the European market for big sales for our youth team project,” Barente explained.
This paper understands that the player signed a monthly salary of $4,000 (Shs14.8m).
Search for a permanent home
The club have set targets to own their own home in their long-term strategy. That is partly fueled by the cost of hiring a facility for their matches.
The edible oil makers currently pay Shs5m to use the Fufa Technical Centre in Njeru for official matches each season. They pay an additional Shs100,000 for each training session and Shs300,000 for a friendly match.
That figure sky-rocketed to a shocking Shs98m to hire St. Mary’s Stadium in Kitende for their 2022/23 Caf Confederation Cup preliminary round home leg encounter against Future FC last year.
“We paid Shs98m to use the pitch and dressing room for only 90 minutes,” Barente revealed, “this is partly because of the monopoly but that’s football business.
“We’re also looking to own a future facility to generate money besides hosting our games.”
Bul had a five-year deal to use Bugembe Stadium but decided to shift after the organisers hosted a music concert that left the pitch in a deplorable state despite the company burying over shs50m to upgrade the facility.
Structure of Bul FC
Board and administration
Board chairperson – Ronald Barente
Vice chairperson – Martin Ociiti
Treasurer – Fred Kayuyo
Committee Members – Ceasar Dale, Phiona Asiimwe, Ronald Sudili Patrick
Chief Executive Officer – Joseph Mutaka
Coaching
Head coach – Abbey Bogere Kikomeko
Assistant coaches – Simeon Masaba & James Magala
Bul’s total costs in 2022/23: Shs2b
• Domestic costs: Shs1.6b
• Foreign costs: Shs500m
Proposed 2023/24 Budget: Shs1.6b (Competing only domestically this season)
Breakdown of costs in the previous season
Meals (daily breakfast and lunch for 45 staff): Shs23m per month
Transport facilitation per season: Up to Shs260m
• Different pick-up and drop-off points of players of up to 6 trips per day: Shs96,000 x 5 = Shs480,000
Away match transport and match day costs (includes meals and accommodation)
• Arua: Shs15m
• Mbarara: Shs11m
• Kampala/Central: Shs3m
Match day budget
• Allowances: Shs4.5m (Shs50,000 & Shs40,000 for technical team & players respectively)
• Winning bonus: Shs10m (First 18 players Shs200,000, remaining players shs100,000. Coaches not revealed)
Stadium hire (Fufa Technical Centre, Njeru)
• Official matches: Shs5m per season
• Friendly match: Shs300,000 per match
• Training: Shs100,000 per session
• Maintenance: Club costs as and when need be
Salaries
Total monthly salaries: shs54m per month
• Lowest: Shs500,000 for junior team graduates & Shs800,000 for senior team players
• Highest: Shs1.5m for players
• Coaches: Not revealed
• Total no of players: 35
• Total no of staff: 54
Expenditure for Caf Confederations Cup vs Future FC
Total expenditure: Shs300m (excluding Fufa’s ticket offer)
Home match
• Stadium hire (Kitende): Shs98m
• Revenue from match: Shs10m
Leader of delegation/referees
• Allowances and ticket were paid for by Fufa
• Accommodation: $600 (approx. Shs2.2m)
• Referees entourage, allowances and accommodation: $9,550 (Shs35.34m)
• Lead car and transport for match commissioner: Shs1.5m
• Leader of delegation transportation: Shs715,000
• Away team transport (Fufa bus): Shs1.5m fuel
Away Match in Cairo, Egypt
• Return air tickets: approx. Shs3.7m ($1,000) per ticket x 25 staff = Shs92.5m (Fufa catered)
• Extra cost due to stopover in Addis Ababa, Ethiopia: $219 x 25 staff = $5,475 (approx. Shs20.3m)
• Accommodation: $12,500 (5 nights including the match commissioner) approx. Shs46.2m
• Visas: Shs250,000 x 25 staff = Shs6.25m
• Allowances: $200 x 18 players = $3,600 (approx. Shs13.3m)
• Coaches allowances: Not revealed
Source of funding for the Shs2b in 2022/23
• Bidco Uganda Limited: Shs1.6bn
• Gate Collections: Shs15m (biggest match Bul vs Villa: Shs3m and Bul vs Vipers: Shs2.5m)
• Shirts sales: Shs8m
• League sponsorship (StarTimes): Shs95m
• Pay-by-rank prize: Shs7m
• Uganda Cup prize (2022/23 season): Shs50m
• Player sales: Nil
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