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BPL NOT profitable – FIFA

BPL

A study conducted by the Federation of International Football Association (FIFA), has revealed that a turnaround strategy is needed to make an elite league body, Botswana Premier League (BPL), a profitable entity.

The study piloted in June and completed in December of last year, depicts a picture of possible improvement where a total of 16 premier league clubs were examined and studied on how they conduct their football related businesses.

It comes out that 54% of premier league club revenue streams are from general sponsorship while a paltry 2% is generated from gate takings. A further 11% of profit is from broadcasting rights and that remains abnormal in a game that should be well known to be propelled by rich television agreement worldwide.

Moreover, BDF XI, Gilport Lions, Extension Gunners, Miscellaneous, Morupule Wanderers , BR Highlanders, Police XI and Prisons XI have all demonstrated a heavy reliance and dependence on sponsors, prices and monthly grants, while the quartet of Jwaneng Galaxy, Orapa United, Township Rollers and Gaborone United have all managed to source revenue streams outside the common and well known sponsor outlets.

Of all the 16 premier league clubs, Jwaneng Galaxy emerges as the top club that is able to attract moneyed sponsors. The study shows that the Jwaneng outfit rakes about P 5 million in sponsorship revenues, followed by their ‘rival brothers’ Orapa United who receive an approximation of P 3 million per football season.

The two clubs are at the fore front because of the footsteps and presence of Debswana in their leadership radar.Coming third is Security Systems whose purse get around P 2.5M from the parent company, GU is on fourth spot at around P 1.5M. Township Rollers is on a distant fifth position with about P 1M per season of individual sponsorship.

The rest of the clubs receive services in kind such as accommodation, playing kits, training kits, fuel and water and soft drinks. This further underlines the struggle to make profit as footballing team in the elite league, the study highlights.

However, from the report, it emerges that only Township Rollers has the capacity to make profit from a good football season. Much of the club revenues are from the sale of its replica jerseys. The club as powered by Jagdish Shah sells about 3000 replicas at a value of P 350 000.It is the only club that sells merchandise from sport chain stores (Studio 88) and according to the report, it is a reliable indicator that shows fans engagement level with the club.

While it emerges from this study that ticketing revenue has a low weight on club’s revenues varying from 2-9% depending on the club, Rollers again is the only club making profit from this front.

But to further underscore the issue of lack of business sense in the elite league, it comes to the fore that there is low fan attendance per home game and this is the major cause of low ticketing revenue.

Gunners however top the table, averaging a total of 5000 supporters per game. Gunners is followed by Rollers at 4000 followers while Miscellaneous comes third with 1700 fans per home game. On average, it shows that 75% of clubs have a fan base while the remaining 25% have absolute nothing.

The report further indicates that many of Botswana’s elite clubs are experiencing financial difficulties because of the model of ownership.
“Clubs legal entity form is not homogenous and 25% of them are owned by the government,” the report shows.

The report therefore recommends that clubs should standardized ownership models as this will lose dependency on government.“Furthermore, legal conditions will be the same for all clubs and transparency of the BPL will be enhanced,” the report curtailed.

However, BFA says it knows nothing about the report but one member of the executive committee says the association is addressing all problems bedevilling Botswana’s game.

The member is adamant that all administrative loopholes of the game will be resolved and it is why FIFA project time for change is still on going at regional level.

8 – Numbers of clubs that make financial losses
4 – Clubs do not depend on gate takings
1 – club is self-sustaining

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