{"id":61660,"date":"2023-12-03T16:23:25","date_gmt":"2023-12-03T16:23:25","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=61660"},"modified":"2023-12-03T15:20:39","modified_gmt":"2023-12-03T15:20:39","slug":"kcca-desperate-to-increase-cash-flow","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/kcca-desperate-to-increase-cash-flow","title":{"rendered":"KCCA desperate to increase cash flow"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>KCCA are one of, if not the best, fairly run football clubs in the country.<\/b><\/p>\n

The trophies, allure to footballers, coaches and association with some of the best corporate brands is testament to that.<\/p>\n

Evolution<\/b><\/p>\n

However, recent absence from continental football and lack of domestic silverware have seen them struggle to keep revenue taps running as fairly fluently as they did when KCCA entertained in the Champions League under Mike Mutebi.<\/p>\n

When they had StarTimes on their shirts on a Shs400m a year deal, plus Prime Media, Britam and MTN, the combined revenue from partners stretched to about Shs800m per season.<\/p>\n

SEE TV, who offered a slightly higher monetary deal to replace StarTimes on KCCA shirts, hardly saw the light of day, with stadium lighting partner, CHiNT Electric, now taking over the former\u2019s place on the tops.<\/p>\n

As of today, stadium naming rights holders – MTN, Britam and 22 Bet are combining for miserly Shs350m per year to KCCA, a significant fall.<\/p>\n

Broadcast sponsors, StarTimes, paid KCCA – as they did other UPL clubs – Shs95m last season. The fee remains the same this campaign.<\/p>\n

The challenge<\/b><\/p>\n

\u201cThat is the real challenge,\u201d KCCA Chief Executive Officer (CEO) Anisha Muhoozi told the Daily Monitor, \u201cthe cashflow challenge. But we are doing our best to get back where we were, even surpass it.\u201d<\/p>\n

Dropped player sales, absence from the Champions League since 2019 and Confederation Cup in 2021 has all had a hit on the club revenues and ability to attract new sponsors.<\/p>\n

KCCA\u2019s last league title came in 2019, and the last major player transfer deal came in 2020 when they sold Allan Okello to Algerian club, Paradou, in the region of $200,000 (about Shs700m).<\/p>\n

\u201cThe last two years really hurt us in terms of player sales. Some people may not fully appreciate it but nurturing and selling players helps our revenues a lot,\u201d explained Muhoozi.<\/p>\n

Obligations met<\/b><\/p>\n

KCCA, who failed to meet their 2022\/23 Shs5.4b budget by Shs1.4b, may be taking a hard look at themselves – by their own new standards – but they are still some distance ahead of most of the chasing pack.<\/p>\n

They have a fairly decent club structure, and – despite a drop in financials and silverware, KCCA still carry out their obligations including staff welfare.<\/p>\n

KCCA spend about Shs220m a month to keep the club running domestically, translating into about Shs2.6b per year.<\/p>\n

Of that, Shs160m gross is paid in salaries per month, translating to Shs1.9b annually.<\/p>\n

Continental costs, rewards<\/b><\/p>\n

And if on the continent, they averagely spend between Shs700m and Shs1.8b depending on how far they go in the tournament and destination.<\/p>\n

When they reached the Champions League group stage in 2017\/18, where they finished third in their pool, KCCA earned Shs2b ($550,000). That\u2019s since been increased by Caf to Shs2.5b ($700,000).<\/p>\n

KCCA represented Uganda in the Confederation Cup this season, where they missed out on Shs1.4b ($400,000) group stage kitty after being eliminated by Libya\u2019s Abu Salem in the second preliminary round.<\/p>\n

On a relieved note, they saved between Shs250m to Shs300m when they got a bye to the preliminary second round, money they would have otherwise spent on two extra first round fixtures, which also includes air tickets.<\/p>\n

Travel costs normally leave a huge dent on clubs but they reduced significantly in the 2019\/20 season after Fufa – using some of the money from government – took over air ticket expenses for clubs representing Uganda on the continent.<\/p>\n

Unfortunately, the federation announced this year it was ending the relief.<\/p>\n

Intangible value <\/b><\/p>\n

\u201cIf you have trips to North Africa like Tunisia, Algeria, Morocco, where an air ticket goes for S1,200, you are counting Shs300m every two home and away matches,\u201d explained KCCA CEO, Muhoozi.<\/p>\n

\u201cThat is about Shs900m in the preliminaries and Shs1.8b in the group stage. So when you look at the figures, we may not be making the money we want but there is bigger intangible value to that.<\/p>\n

\u201cPlayers get a bigger platform and we get to sell them and make returns, for example Allan Okello when we played Paradou.<\/p>\n

\u201cOur brand value also increases, which comes with more attraction, thus more appeal to sponsors. That\u2019s why returning to the continent is important to us.\u201d<\/p>\n

The stadium construction, which has forced KCCA to pay St Mary\u2019s Stadium, Kitende huge amounts to host their Caf matches there, has also affected gate collections at Lugogo.<\/p>\n

This newspaper understands that St Mary\u2019s charged KCCA Shs35m to host AS Kigali a couple of years ago at St Mary\u2019s Kitende and Shs100m to host Libya\u2019s Abu Salem this season.<\/p>\n

It could have been three times more if KCCA had progressed to the group stage.<\/p>\n

The MTN Omondi Stadium, however, still brings in some money. The KCCA versus Vipers home game last season raised some Shs41m.<\/p>\n

Lugogo stadium hire for other activities also earns the club Shs150m per year, while merchandise sales have grown to bring in some Shs120m annually, an area the club is encouraging fans to embrace more.<\/p>\n

The Authority, which contributes between Shs1b and Shs2b annually depending on disbursements from the government, remains KCCA\u2019s main dependable source of income.<\/p>\n

With their target of reaching the Caf Confederation Cup group stage gone, KCCA will now look to the Authority, improving player sales, selling more merchandise and attracting more sponsors among others to meet their 2023\/24 Budget of Shs7b.<\/p>\n

KCCA club structure<\/b>
\nPatron – <\/b>Lord Mayor Erias Lukwago<\/p>\n

Management<\/b>
\nAdministration<\/b>
\nTechnical team<\/b>
\nKCCA average domesticcosts in a season<\/b>
\nTransport facilitation:<\/b> Shs10,000 per player, per day (total Shs320,000) for up to 32 players (about Shs8m per month)<\/p>\n

Technical team transport facilitation: <\/b>Between Shs10,000 and Shs20,000. About Shs4.6m per month for 10 people.<\/p>\n

Feeding:<\/b> Shs15m per month<\/p>\n

Home matches expenses: <\/b>Shs6m spent on hosting a home match on average. Bigger home matches involving say, KCCA vs Vipers, KCCA vs Villa could go up to Shs8.7m in costs<\/p>\n

Away matches expenses <\/b>
\nAway matches per diem (if they spend a night there)<\/b>
\nCoaches: <\/b>Shs100,000 each. Average cost is about Shs800,000 because not all technical team members travel<\/p>\n

Players:<\/b> Shs50,000 each. Cost averages Shs1m for up to 20 players that travel<\/p>\n

Prize money <\/b>
\nHead coach: <\/b>Shs200,000 for a win<\/p>\n

Players & rest of the coaches: <\/b>Shs100,000 each for a win, with additional performance-based bonuses depending on individuals contracts<\/p>\n

Average amount paid out in prize money & bonuses: <\/b>Shs3.4m per month<\/p>\n

All salaries, including administration:<\/b> Shs160m per month gross<\/p>\n

Total annual salaries: <\/b>Shs1.9b gross<\/p>\n

Total average monthly expenses for domestic season, including miscellaneous:<\/b>About Shs220m <\/b>depending on trips made and destination<\/p>\n

Total annual expenses for domestic football:<\/b>AboutShs2.6b<\/b><\/p>\n

…………………………………………………………………………………………..<\/p>\n

Costs to play at the continent<\/b>
\nAway trips<\/b>
\nAir tickets examples<\/b><\/p>\n

On average, air tickets for three away preliminary matches could go for as low as Shs177m, and as high as Shs426m. Multiply the aforementioned if the team advances to the group stage.<\/p>\n

Accommodation: <\/b>Shs47m (3 nights at $130 full board each). That\u2019s Shs141m for three preliminary stage trips.<\/p>\n

Visa:<\/b> Shs5.9m (about Shs18m for three trips)<\/p>\n

Per diem:<\/b> Up to Shs19m (x 3 = Shs57m)<\/p>\n

Home continental matches<\/b><\/p>\n

Home club pays match officials as follows;<\/p>\n

Match commissioner allowance: <\/b>$1,200 (Shs4.4m x 3 home matches = Shs13.2m)<\/p>\n

Fufa guide: <\/b>$300 (Shs1.1m x 3 home matches = Shs3.3m)<\/p>\n

Full board accommodation at a 3-star hotel<\/b>
\nOne match commissioner, 3 referees, 1 fourth official, 1 referee assessor: <\/b>Shs450,000 per night x 6 = Shs8.1m. (Shs24m for three home games)<\/p>\n

Six match officials air tickets: <\/b>Averagely $1,000 x 6 = Shs22.2m (Shs66m for 3 home matches)<\/p>\n

Inland transport<\/b><\/p>\n

Match commissioner: 1 car<\/p>\n

Match assessor: 1 car<\/p>\n

Referees: 1 car<\/p>\n

Lead car for all the above: 1 car<\/p>\n

Each car charged at<\/b> Shs250,000: That\u2019s Shs1m, and Shs3m <\/b>for three home matches.<\/p>\n

Visiting team bus: <\/b>Shs400,000 fuel for KCCA bus, which visitors normally use. That\u2019s Shs1.2m for three preliminary home games.<\/p>\n

Team bus lead car: <\/b>1 car (Shs250,000 for one match, and Shs750,000 <\/b>for three home matches)<\/p>\n

Leader of delegation lead car: <\/b>1 car (Shs250,000 for one match, and Shs750,000 <\/b>for three home matches)<\/p>\n

St Mary\u2019s Stadium, Kitende hire <\/b>
\nAverage spend on the continent<\/b>
\nNOTE: <\/b>Travel costs reduced significantly from the 2019\/20 season after Fufa took over air ticket expenses for clubs representing Uganda on the continent. Unfortunately, the federation announced this year it was ending the relief.<\/p>\n

Estimated average spend on the continent per season:<\/b> Between Shs700m to Shs1.8b (from preliminaries to group stage)<\/p>\n

Total estimated domestic spend + continental costs (min to max):<\/b> Between Shs3.3b and Shs4.4b a season<\/p>\n

Revenuesources<\/b>
\nKampala Capital City Authority: <\/b>Between Shs1b to Shs2b annually (over the years)<\/p>\n

Player sales: <\/b>About Shs700m from Allan Okello sale to Paradou (Algeria) in 2020<\/p>\n

Continental target: <\/b>Earn at leastShs1.4b by reaching the group stage of the Confederation Cup in 2023\/24. This plan was halted by first round elimination from the continent<\/p>\n

What a preliminary \u2018bye\u2019 meant for KCCA in the 2023\/24 season<\/b>
\nGate collections<\/b>
\nCorporate sponsorship<\/b>
\nMTN, Britam, 22 Bet: <\/b>Shs350m per year<\/p>\n

CHiNT Electric: <\/b>Stadium lights partner<\/p>\n

Stadium hire revenues:<\/b> Shs150m a season<\/p>\n

Merchandise sales: <\/b>Shs120m, a steady raise from Shs40m and Shs60m<\/p>\n

Broadcast sponsors (StarTimes): <\/b>Shs95m<\/p>\n

Financial books<\/b>
\n2022\/23 Budget: <\/b>Shs5.4b<\/p>\n

Realised: <\/b>Shs4b, Shs1.4b less than projected and Shs100m less than the previous financial year<\/p>\n

Major reason for decline: <\/b>Reduced player sales and absence from continent in last couple of years, poor returns at home<\/p>\n

2023\/24 Budget:Shs7b<\/b>
\nKey drivers: <\/b>KCCA (Authority) annual disbursement, must reach Caf Confederation Cup group stage (eliminated in first round), improve player sales, sell more merchandise, attract more sponsors<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. KCCA are one of, if not the best, fairly run football clubs in the country. The trophies, allure to footballers, coaches and association with some of the best corporate brands is testament to that. Evolution However, recent absence from continental football and lack of domestic silverware have seen them struggle to keep […]<\/p>\n","protected":false},"author":84,"featured_media":61658,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,17],"tags":[233,240,234],"class_list":["post-61660","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-sport","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nKCCA desperate to increase cash flow - Uganda<\/title>\n<meta name=\"description\" content=\"KCCA are one of, if not the best, fairly run football clubs in the country. 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