Despite enjoying an annual sponsorship of K100 million from Nyasa Manufacturing Company (NMC), domestic football powerhouse Nyasa Big Bullets FC continue to swim under a pile of debts.
According to a financial report prepared by the club’s outgoing treasurer Alex Gondwe, which was submitted to the board of trustees chairperson James Busilley yesterday, the debts for the last two seasons have soared from about K44.23 million to K103 million.
Gondwe attributed the increase to the K46 million loan which they got from their sponsors NMC to offset players’ signing-on fees which has accumulated interests of K5 million.
“Before we got the loan, our debt stood at K60 million, but we managed to reduce it to around K44.2 million. The good thing is that we are clearing the debt gradually,” he said.
Among the major debtors are Skylinks Limited (K11 212 500), their former vice-chairperson Sadik Malinga (about K5.1 million), ground levy for proceeds from Fomboni game (about K4.33 million), former technical director Billy Tewesa (K3 million), former chairperson Sam Chilunga (K1.9 million), players and technical committee arrears (K2 million), Nsanzurwimo Ramadhan (K1.9 million), CAF fines, levies and match commissioner refund (K1.466 million), E.E Sales and Accounting Services (K1.5 million), former coach Eddingtone Ng’onamo (K1.5 million) and Supreme City Lodge (K1.377 million).
The report also indicates that the People’s Team spent K228 898 742.27 in the just ended season against an income of K230 988 982.83 leaving them with a deficit of K2 090 240.56.
Gondwe submitted a summary report at the club’s annual general meeting (AGM) on Saturday which was rejected by the delegates on the basis that it was not detailed. But Busilley yesterday confirmed having been given a copy of the report.
“What it means now is that we will present it to other stakeholders such as the board of trustees, sponsors and main supporters committee to go through it and give their input before a determination is made,” said Busilley.
It is the first time that the People’s Team has produced a detailed financial report in years.
According to the document, as at February 3 2017, the opening balance was K82 378.18 and the bulk of the income was from annual sponsorship from Nyasa Manufacturing Company (K93 million), loan (also from the sponsor towards signing-on fees (K46 million) and gate collections (about K69.635 million).
The other major incomes were Presidential Cup prize money (K10 million), TNM Super League runners-up prize (K7 million), Luso TV Bus Ipite Bonanza appearance fee (K3.24 million) and membership subscription fee (K1.2 million).
On expenditure, the bulk of the expenses apart from the K46 900 000 were on salaries (about K53.265 million), administration costs (about K27.563 million), game bonuses K23.847 million), transfer fee charges K16 million, food accommodation and refreshments (about K11.512 million), training allowances (about K8.635 million, prize money sharing (K6 million) and 10 percent supporters cut from gate takings (K5.659 million).
Other relatively major expenses were medical K4.5 million, training equipment (K2.737 million), transport hiring costs (K2.45 million), fuel (K2.37 million), Sulom K1.945 million, travel allowance (K1.748 million) and training ground hiring (K1.640 million).n