National Sports

BB finance committee explains expenditure

Nyasa Big Bullets FC finance committee chairperson Isaac Norman claims the club’s K41 million expenditure of Nyasa Manufacturing Company’s (NMC) sponsorship cannot be described as overdrawing of funds because it was used for the club’s benefits.

However, he said the actual sum the club used for its operations as per their partnership agreement with NMC this season is K28 million.

Set the tone: Mwamadi (L)
Set the tone: Mwamadi (L)

According to Norman, they spent a lot of the sponsorship money at the start of the season on accomplishments that were not budgeted for in the partnership agreement but could not be ignored. They included buying of players from other teams and the payment of players’ salaries.

“We spent a total of K10.1 million on player transfers at the start of the season. Our partnership agreement with NMC does not include the buying of players and the signing on fees, but we had to use the sponsorship money on these things to make the team strong. That cannot be described as  overdrawing of funds,” he said.

Norman added that last December the club spent K1.5 million of sponsorship money on players’ salaries and another K1.5 million in the first week of July.

“It is also not fair to include on our sponsorship expenditure list the K400 000 NMC gave to the players during a recent meeting because that was perceived as a gift to the players. The K880 000 spent to renovate Nyasa billboards that were vandalised was as well not part of our partnership agreement,” he said.

“If you subtract these amounts which were outside our budget line, you will realise that the actual sum the club used for its operations as per the partnership agreement with NMC is K28 million. We have documented evidence on this.”

Nevertheless, Norman dismissed fears that the K34 million balance would not be enough to cater for the team’s operations in the next five months, saying “as business concept suggests, you invest more at the start of your business and you cannot spend the same amounts every month.”

Norman’s clarification follows Bullets supporters’ committee recent calls for an extraordinary general meeting (EGM) so that the current leadership should explain how it used the money. There were also concerns that their sponsorship balance would not be enough to last the 2016 season.

“I am not suggesting the money is being mismanaged, but the picture that is coming out clearly is that we could be spending beyond our means,” Bullets supporters’ committee chairperson Stone Mwamadi told The Nation last week.

Related Articles

Back to top button