Super League of Malawi (Sulom) is working on partnering insurance service provider Nico Life in a deal that will see TNM Super League clubs selling funeral cover policies for the company.
Both Sulom and Nico Life confirmed the development in an interview yesterday.
Nico Life chief executive officer Eric Chapola confirmed the development, but said they will comment after completing consultations with TNM Super League clubs.
Sulom president Tiya Somba Banda said once successful, the agreement will mark a new era in TNM Super League’s history.
He said: “We have been working with Nico Life on the possibility of having a funeral cover product just like the Kaizer Chiefs and Orlando Pirates one and we have now finalised the nitty-gritties.
“It is to that effect that we want to engage clubs on the same to perfect the product before implementation.”
Somba Banda said the initiative is the executive committee’s effort to ensure clubs have alternative sources of income.
“In our manifesto, we promised to explore means of ensuring that clubs do not just rely on gate collections. This is a step in that direction,” he said.
Somba Banda said clubs can utilise their supporters’ base to sell the funeral cover and make money.
“Imagine how much money Bullets or Wanderers will make if they can convince their supporters to buy the funeral cover,” he said.
Sulom met Southern Region clubs on Monday in Blantyre and Central Region teams in Lilongwe on Tuesday.
Somba Banda said they met Kasungu-based TN Stars on Wednesday and Northern Region clubs yesterday in Mzuzu.
Silver Strikers chief executive officer Thoko Chimbali welcomed the development, saying it will go a long way in helping the clubs improve revenue generation.
“We met them and they explained the concept to us. Though we are yet to develop the concept model of how the proceeds will be shared, I would say it’s a welcome development. The premiums are fair looking at Malawi’s economy,” he said.
Nyasa Big Bullets chief administration officer Albert Chigoga said they are in full support of the initiative.
“[Coming] at a time when teams are going through financial turmoil, this is a good move,” he said.
Soccer analyst Charles Nyirenda applauded Sulom for the initiative, saying time has come for Malawian clubs not to rely on sponsorship alone.
“There is too much reliance on sponsorship and gate collections. Elsewhere, clubs survive on such business partnerships,” he said.
But another analyst Kelvin Moyo said the success of the deal relies on clubs having the capacity to run the business.
“For this dealership to succeed, the clubs need to employ special teams to run such a business with proper structures. They will need good human resource,” he said.
Meanwhile, the insurance company is expected to reveal more about the deal when unveiling the agreement on September 1.