Tag: Gor Mahia finances



6 Dec 15

The friendly match between Gor Mahia and Zoo Kericho that was scheduled for Saturday did not occur. According to reports on futaa.com, the players have not been training and declined to take the field until their outstanding salaries were settled.

Gor Mahia typically receives funds from gate collections. But the club has been idle of late. Meanwhile initiatives that were created to help fund the club have gone moribund as the club Chair busies himself with trying to win the FKF chairmanship.

Meanwhile Gor Mahia are not the only side facing acute financial difficulties. Dan Sserunkuma has left his Armenian side Ulisess due to non payment of allowances.

“Sserunkuma has left Ulisses FC since the club is facing severe financial difficulties and has failed to keep its end of the contractual agreement with the player. At the moment it owes the player four months unpaid wages.

“Together we will be reporting the matter of unpaid wages to Fifa but at the moment, Sserunkuma will be heading back to Nairobi to spend time with his family as we weigh options on a new club this transfer window,” said Ken Joseph his agent.

Tusker are said to be aggresively chasing his signature.


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23 Nov 15

To say that Gor Mahia has had a successful 2015 season would be an understatement. It is especially impressive considering that in 2014, Gor Mahia lost a whole host of players who had been the backbone of the team. Dan Sserunkuma, Geoffrey Kizito, Rama Salim, Edwin Lavatsa, Paul Kiongera, Shaban Kenga, Timonah Wanyonyi, Anthony Akumu and Kevin Omondi among many others left at various points during the season. To make matters worse, coach Bobby Williamson also left in August. However with decent planning and recruiting, Gor Mahia recovered and had what can only be described as a spectacular season, perhaps second only to 1987 when Gor Mahia won the Africa cup winners cup, the league and the Moi Golden cup (now known as GoTV shield).

As things stand now, the season is coming to an end. Once again many players are set to leave. The contract of Geoffrey Walusimbi who has played a pivotal role over the past two seasons is coming to an end. Walusimbi has been instrumental with his all round intelligent play, tactical awareness and brilliant passes near the penalty box that often result in goals.

Meddie Kagere whose goals have been instrumental and who has given fans plenty to remember, also has a contract that is coming to an end.

“I cannot comment on my future, because I also do not know whether I will be here next season or not. Let us finish the season before thinking about the future, but the truth is, I have enjoyed my stay at this club. I have not felt good when I finish the match without a goal. My job is to score goals as well as create chances for my teammates to score. So when I fail to do any of the above, it really saddens me, and that is why I work hard for my team.” said Kagere to goal.com

Another key player whose contract is ending is George Odhiambo “Blackberry”.

“My contract ends out and I am not very certain I will still be in Gor next season. There are a number of offers which have come from Europe and I will look at all of them and see what is good for me and make a decision,” he told Soka.

The performance of several Gor Mahia players has caught the eye of several teams in Zambia, Tanzania and South Africa and the

Gor Mahia has had a formidable unit in 2015 . If the core of this team is kept together for 2016, they could reach even greater heights. Now Kenyan team has reached the second round of the African champions league. Gor Mahia could be the first. With a bit of luck in the draw, they could even reach the group stage. In 2015, Gor Mahia lost narrowly to AC Leopards yet they were forced to play without key players like Kagere, Nizigiyimana and Sibomana. Perhaps even more important is to keep the services of coach Frank Nuttall whose tactical brilliance surpasses any coach in Gor Mahia’s history.

Gor Mahia will need to work overtime to keep the core of the team together and also to recruit players who are capable of stepping into the breach and effectively replacing the players who are set to leave.

To keep the core of the team intact will require a lot of planning on the part of the officials. Once again all the financial initiatives that were initiated to keep the club financially moribund have seemingly fallen by the wayside. The SACCO, the #35010 paybill number, the membership drives, Gor Mahia bread etc, are no longer being promoted much as this columnist predicted in July. The chairman will need to bring these initiatives back to the forefront.

Ambrose Rachier performed well in his capacity as club chairman in 2015. We hope that his campaign for the FKF chairmanship will not distract him from the planning that the club needs for 2016.


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3 Sep 15

Gor Mahia have terminated their contract with Nakuru based Good Bread and signed a new one with Elliott Bread. The deal was first reported last week. Chairman Rachier is now making a formal announcement.

Gor Mahia Chairman Ambrose Rachier while formally announcing the end of the deal on Tuesday, declined to provide further details.

“We have a new one from today (Tuesday) since we terminated the one we had before. I can’t disclose the reasons of our departure but in our contract, there was a clause that allowed either party to mutually end the deal.

However it is clear that Elliott have offered a better deal at Ksh 2 per loaf instead of the ksh 1 per loaf that was offered by Good Bread. And since Elliott is an established company with a wider distribution network, it will create better returns for the club.

Rachier hinted that the club has been disappointed with the returns from Good Bread.

“We have written to Good Bread notifying them of our exit and since I don’t want to breach the contract, I can’t explain further. The deal is almost identical but we want to give Elliot a chance to see if we will perform better financially,” Rachier, who also serves as SportPesa Premier League chairman, told capital FM

It must be said however that the club has not done a diligent job of reminding the club fans and football supporters countrywide to support the bread deal with their pockets. Fans must constantly be reminded. The club should do its part to promote the bread.


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11 Aug 15

New reports today suggest that yet again there is trouble in the Gor Mahia camp due to non-payment of salaries. This time the players have not only staged a go slow, but they have skipped training and gone on strike.
“We have done our part but the office is letting us down by not paying us on time. Last Sunday, after the match against KCB, no one talked to us about this issues and we agreed to go on strike on Tuesday (yesterday),” a player said to the Standard.

The player said they are disappointed by the fact that while the club officials received Sh2 million as prize money for finishing runners-up in the CECAFA Cup, the players have not received any money. This leaves fans quizzical because Gor Mahia’s travel expenses were paid for by a combination of the Harambee money raised before the tournament and funds from the Ministry of sports. CECAFA paid for hotel expenses. So where has the prize money gone?
And this comes a day before they are due to play Ushuru FC in a midweek encounter scheduled for Wednesday 4pm at City stadium.
Asked whether they will turn up for today’s fixture, the player said:
“The game is not even on our minds. We are more focused on getting paid and we are therefore disappointed that no one has even bothered to talk to us.”

Inactivity with Financial Initiatives

When the SACCO project was officially launched, this column wrote an article stating that Gor Mahia officials typically just launch new initiatives then sit back and expect fans to come forward with money. They do not promote the initiatives and rarely  do they persuade fans by being accountable and transparent with funds. In fact one current official was brazen enough to state “Transparency is for members only”.

This is comical when you consider that many fans who have not contributed their hard earned money are hesitating precisely because they want to see transparency first. The fans have been asking for transparency for so long that many are tired of mentioning it.

The Gor Biro bread was launched with a lot of fanfare. But since then, it has not been promoted by the club at all.  And the club has not seen it fit to update fans on how much money was raised. The last report came one month after it was launched and it stated that Gor Mahia had only received Ksh 60,000 which falls far short of projections. Yet the club has still not seen it fit to promote the sales of the bread.

The SACCO was launched with what seemed like a high level of professionalism with corporate bigwigs put in charge. But that too has become moribund because the club stopped promoting it or persuading fans to join. The management team appointed to run the SACCO us hardly active in encouraging fans to join. At the very least they could produce audited accounts showing how much has been collected and how much has been disbursed to the club. This alone would encourage many more fans to join the SACCO

The 350100 paybill number, which started with a lot of promise, is hardly promoted and the club no longer accounts for whatever money they receive.  Other initiatives like membership drives were also launched and left moribund, not to mention merchandize sales which are basically non-existent.  The latter is a starke contrast from 2010 when Gor Mahia jerseys were selling at a break neck pace.

So for the umpteenth time, players have gone on strike due to unpaid salaries.


Link Category: Articles, News



4 Aug 15

When Gor Mahia returned from Tanzania after their CECAFA club cup campaign coach Frank Nuttall called upon sponsors to come on board to bolster the club financially.

“I’m disappointed that we did not win but pleased with the effort of the players, the staff and the management of the club. The success we had is because everyone played their part,” he said. “What we now need is for sponsors to come on board; whichever sponsor is out there should come and help the team,” he said.

In the final, Gor Mahia came up against a side in Azam that has a much stronger financial position due to its affiliation with the parent company Azam media. The club has facilities that have been described by the FIFA website as world class. They have a stadium of their own in which they host league matches and a team bus as good as any in Europe.

The mere fact that they have their own stadium is a huge advantage: It means players can spend more time on the training ground sharpening their skills unlike Gor Mahia who often can only rent City stadium for 4 hours a day and still have to pay through the nose.

To reach the level that Azam has reach financially, Gor Mahia will need to find other means of raising revenue. Of late two KPL teams have obtained lucrative sponsorship deals: City Stars penned a deal worth Ksh 81 million over three years while Mathare penned a deal in the region of Ksh 85 million. Both deals are well above the deal Gor Mahia signed with Tuzo in 2012 and well above the deals that AFC signed with Mumias Sugar.

Both teams have no fan base and City stars are battling relegation and will likely be in the lower leagues next season. One would think that a sponsor would want to associate with Gor Mahia, a high flying team  that is known all over Africa, has a rich history a huge fan base and a winning tradition.

But sponsorship is not forthcoming for a number of reasons. The first is hooliganism. The second is politics. This means that Gor Mahia will need to wage a strong public relations push to overcome these factors.

 

Partner with a sponsor to combat hooliganism.

In order to combat hooliganism, security would need to be enhanced. Gor Mahia could propose a deal to corporates such that a significant percentage of the sponsorship money goes towards providing security at each game.

As much as 10% of any sponsorship deal should go towards additional security.

Gor Mahia would partner with the sponsoring company to pay for additional police including plain clothes policemen to sit among the fans. And additional police to protect the areas surrounding the stadium. This would apply for both home and away matches. Due to poor public relations Gor Mahia cannot afford another hooliganism event even when they are not responsible for security.

An arrangement that bolsters security at a stadium and its environs will give a potential sponsor peace of mind.

Gor Mahia must strongly appeal to the government to play its part by arresting hooligans. Whereas Gor Mahia can to a certain extent control fans within the stadia, they cannot do anything when fans are rioting say in Muthurwa.

Emphasize Neutrality

Secondly Gor Mahia will need to make a conscious effort to appear non-partisan. In a country with such deep political divisions, Gor Mahia cannot be seen as being an arm of any political party. Former club CEO Lordvick Aduda cited this issue as a major stumbling block whenever he and Rachier visited corporate types to seek sponsorship.

Hold onto players

Gor Mahia will need to bolster its financial position if it hopes to hold ionto key players in the short term.

Striker Michael Olunga who has been the subject of much speculation has said he is currently focused on helping the club retain the league title.

“I have a contract with Gor and I don’t know much about the offers,” said the Geospatial Engineering student. “I just want to concentrate on our target and aim for the league.” he said to the Nation.

Following his CECAFA cup exploits, Olunga drew interest from all three top Tanzanian sides plus Bidvest of South Africa. It remains to be seen how much longer the club can hold onto him.


Link Category: News



19 May 15

In 2014, multiple initiatives were announced by Gor Mahia. These included the pay bill number 350100, the membership drive, various fund raisers, Diamond Trust ticketing etc. All these were poorly executed. And after much fanfair, the club all but stopped promoting these ideas. The 350100 pay bill number is a classic example. When it started, the club promoted it aggressively. The list of donors was updated often and the treasurer actually accounted for the money sent. playing unit was even wearing jerseys emblazoned with the pay bill number and many players actively promoted it. Suddenly the officials these useful activities. And naturally donations to the paybill number stopped. As for the membership drive, the club EC did very little to promote it.

It is important to give credit to the club officials for trying. Some EC members have made significant efforts. But it is also important to note where improvements are needed. The most important aspect of a new initiative is that it must be sustained. The club must constantly appeal to fans and give fans clear direction on how they can participate.

Back in 2010, the club introduced jerseys emblazoned with the club name: “Gor Mahia”. These jerseys became very popular and at one point generated some significant income for the club. But soon pirates took over the business. The club did not bother to warn fans about where to buy and where not to buy jerseys.

Earlier this year, Gor Biro bread was launched amid fanfair by none other than the former prime minister. There was plenty of excitement.  One month later, the excitement appears to be dissipating and there is still no word regarding how much the club is benefiting from the bread. There are now some reports that the bread initiative is not really generating anything close to the income that was anticipated. In fact t would not be a bad idea for the club to wear jerseys branded with the bread to constantly remind the public.

Professional Management

Now the club has finally launched the Gor Mahia Sacco one year after it was announced. Chairman Rachier assured that Gor Mahia Sacco will be operated professionally and independently from the club and the chairman of the club will be the only official representative in the SACCO board. This is excellent news.

Unconfirmed reports suggest that the SACCO will be run by a Mr. Victor Kidiwa. If this is the same Victor Kidiwa who is the CEO at Development Bank of Kenya then this is good news. For many years now, fans on this blog and elsewhere have called for the club to be run by competent professionals who are accountable and understand how to market and promote ideas.

Fans will be hoping that unlike the membership drive that flopped, the SACCO idea will be promoted aggressively and sustained. The person running the SACCO must constantly update the members and keep them posted to assuage any fears that may arise. Running the SACCO with a modicum of professionalism and accountability is the most important aspect of sustaining the SACCO; Professional and accountable management will attract members.

Credit should go to the club patron Mr. Raila Odinga who has been at the forefront of this initiative and also the bread initiative. As a true sports fan, he wants to see Kenyan clubs prosper. Now its up to the fans to show their support for the club.

Structure of the SACCO

Mr. Kidiwa stressed that the SACCO will make use of modern technology in order maximize its income.

“The SACCO is capitalizing on the technological innovations in Mobile Money transfers to grow its Savings and real-time credit offering and has provided opportunities for all citizens to be a part of its growth. To join, an individual will be required to pay an entry fee of KES 500 and fully paid up capital of 50 Shares of KES 20 each, to be recovered from one’s total contributions at the end of the year”
“The SACCO will also operate on minimum contributions of KES 50 per days or KES 100, Weekly or KES 200 Monthly. All transactions can be done via MPESA’s AND MOBIKASH PAYBILL NOs. 897260 or through a bank account with Development Bank Account number: 5451034009 and your National ID as your Account Reference Number.

For every registration fee of KES 500 made to the Sacco, Gor Mahia Football Club will receive KES 100

One aspect that does not impress many fans is the “Adopt a player” initiative which sets out to  encourage individual members to adopt a Gor Mahia FC player by saving for them KES 1,000 per month and eventually mentoring them into financially independent citizens.”  . This initiative does not seem to make sense when you consider that the player turnover at the club is so high hat half the players never last more than two years at the club. Perhaps it would have been better to channel that money to the Gor Mahia U19 team or channel it towards a fund aimed at building a training ground for the club.

 

Do not give up on other initiatives

And finally, the club must not give up on other initiatives that were started. The paybill number, membership drive, jersey sales, merchandize sales etc must all be promoted aggressively. There are still some fans who want to give direct contributions to the club without joining a SACCO. These can use the 350100 pay bill number. There are some fans who would like to become members so they can vote in club elections. And there are some like myself who would like to purchase authentic club merchandize on a regular basis.

And do not forget about sponsorship. The club’s top brass must continue to seek corporate sponsorship. They need not seek a massive sponsorship deal such as the one they signed with Tuzo. Even a deal that is worth half that is worth pursuing. The club may need to become realistic about how much sponsorship it can attract right now.

In general, the club must continue to pursue several avenues of income if it is to be competitive at continental and indeed even local and regional levels. One positive aspect of losing the Tuzo sponsorship is that it has forced officials to think outside the box and it has made fans realize that they need to behave themselves.

Gor Mahia and AFC demand changes

Speaking of revenue sources, Gor Mahia and AFC Leopards, have called for a change of the Kenyan Premier League rulebook regarding gate collections in a desperate move to bolster their accounts.

Currently, the home team has solitary control over match day proceedings. Gor and Leopards now want this changed;

It is worth noting that at some point in the 1980s, 50% of net gate proceeds would go to the home team while 30% would go to the visiting team. This enocuraged fans to travel to away games.

The two clubs have also called for the abolishment of double headers. Gor Mahia organising secretary, David Kiilo, said that he had noted with great concern the manner in which clubs hike ticket prices when they face the two teams.

 “We are struggling to meet our financial obligations, but these clubs are taking advantage of us and I think it is time somebody did something about it.

Most of these clubs are supported by corporate companies and ordinarily don’t charge entry fee, but drive the ticket prices to as high as Sh1,000 whenever they are hosting us or Ingwe,” Kiilo said.

AFC Leopards organising secretary, Timothy Lilumbi, accused the Kenyan Premier League Limited of conspiring with certain clubs “to force unnecessary double headers” for fixtures involving the two. “Surely it is not fair that other clubs take advantage of our huge following to make extra cash from us through gate ollections,” Lilumbi said.


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24 Apr 15

Gor Mahia bread is already a best seller. According to a report on capitalfm.co.ke, the bread has been selling 130,000 loaves per day since it was launched. Club official Ronald Ngala told Capital Sport the novel sponsorship deal in local football is pushing 130,000 pieces.

“This is the way to go and the selling is going up as we speak we are getting Sh130, 000 per day so there is a possibility for the figures to rise up to Sh200, 000 a day. The company is set to spread its supply to Nairobi but at the moment it’s only available in Western Kenya and it’s doing very great.” said Ngala to capital FM

Ngala mentioned that the club is still seeking other sponsors.

“We are still in talks with other potential sponsors but I can say we are heading on the right direction. We are set to launch the player’s welfare and Sacco,” he continued

To stem misappropriation of funds; Gor will be conducting monthly audit before the 10th of every month the Ngala added.

That is good news for Gor Mahia fans who are always concerned about misapropriation of funds. Nothing would derail the enthusiasm of fans buying bread than reports suggesting the funds are being misused.

Secondly the club will now have to watch out for pirates. In 2010, Gor Mahia introduced jerseys branded with the club’s name. The project was initially succesful until pirates started to sell fake jerseys. And before you know it, fans were only buying fake jerseys since they came cheaper.  And now there are reports of club stewards peddling fake tickets during the Gor Mahia – Sofapaka match.

Another area of concern is price gouging. There are already reports of the bread selling for Ksh 50 in Homa Bay instead of the proposed price of Ksh 38. There are stories of a supplier in Umoja who managed to get some of the bread and is selling at Ksh 50. Back in the Mid 1990s, Gor Mahia introduced ball point pens branded with the phrase “I support Gor Mahia”. Some of the vendors outside the stadium brazenly sold them for twice the proposed price.

And as mentioned before, if this project is succesful, there could be room for other projects including milk, soda or maize flour. Soon a person could stock his kitchen with Gor Mahia branded products.


Link Category: News



22 Apr 15

The much vaunted Gor Mahia bread has finally been launched. ODM leader Raila Odinga officially launched the bread in Kisumu City.
“As you know Gor Mahia have had no sponsors and I was in India to talk to the India Chamber of Commerce and Industry, they wanted to know where they can invest and help provide jobs to our youths,” said Raila Odinga. “I met there my friend Srinivasa Reddy of Good Bread Kenya and they showed their interest to partner with Gor Mahia and that is why we are here today to launch Gor Mahia Bread.”said Raila to the Standard.

Raila, who was in India last month, said after meeting Indian Businessmen, he pitched for them to help the club and he was happy to have secured one immediately.

Raila stated that he also wants AFC Leopards to get stronger in order to strengthen Kenya football.

“I also want AFC leopards to get stronger so that we can have a quality league. I believe we have talent in our country that can equal that of Messi, Ronaldo or Sanchez. We should help get these players out and provide them the platform to showcase their talent. “But lack of sponsorship has forced us to think outside the box and we want our players be paid well just like their friends in Europe,” said Raila.

Mr. Reddy said their company, which operates in the Nyanza, Western and Rift Valley regions, will start producing Gor Mahia Bread and urged fans to embrace it. He urged fans to support the initiative.

“Please the more you buy it the better for your club. We intend to sell over 140,000 breads daily. That in a month will translate to over Sh4 million that will go towards the club. “We want to do business and you will help us get this amount to the club,” he said.

Gor Mahia Vice Chairman John Pesa said Nairobi area will also be incorporated soon to help widen the market scope, targeting areas where the clubs fan base is. “We expect the figures to increase depending on the market response. We have 27 players and we are struggling to pay their salaries and allowances,” said Pesa.

For Gor Mahia fans, this is yet another opportunity to support the club. This is especially true for those fans who for whatever reason cannot make it to the stadium.

If this initiative is succesful, there will be other companies that will come forward to do business with Gor Mahia. If the project fails to reach its target, Mr. Reddy and his group will promptly pull the plug.


Link Category: News



16 Apr 15

Gor Mahia  is going to face stronger competition locally. Mathare United have signed a lucrative sponsorship deal with British insurance company Britam.

The deal is worth is worth Ksh 25 million per year for three years for a total of Ksh 75 million. Congratulations are due to Mathare.

However this means Gor Mahia will really need to press the accelerator on their efforts to shore up their financial situation lest the club starts losing players to Mathare.

Many of the club’s recent initiatives appear to have stalled. Recently the club started an initiative that would see loaves of bread branded with the Gor Mahia logo. Out of each loaf sold, Gor Mahia was to get 1 shilling.

“We have signed the deal and hope it can help us raise money to run the club in the coming months. The bread is already on sale and we urge our supporters to buy as many loaves as possible to increase what comes to our coffers.”

The deal was supposed to be signed on Monday and was the brainchild of former club CEO Omondi Aduda.

“I started the campaign to have the bread company come on board during my days as K’Ogalo CEO and I am happy that they have now reached an agreement and that the deal will be launched on Monday.” said Aduda to goal.com

Yet Monday came and went with no formal announcement or launch. The SACCO which was due to start in January has also stalled as have other initiatives.


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2 Apr 15

Having failed to raise enough money for their trip to Congo, Gor Mahia are now staring the prospects of not being able to fulfill their obligations in the Africa champions league.

“We fear we may not travel to Congo because we do not have the money to honour the match. The tickets to Congo alone for 30 people, including players and members of the technical bench, cost Sh2.8 million,” said chairman Rachier.
Rachier continued to reach out to fans.
He added: “It is possible that we can get tickets and travel, but the real issue is being able to take care of the team in Congo. We will be in a foreign country with no money to pay for accommodation and transport costs. “We are appealing to our fans and other well-wishers to come to our aid, otherwise it will be difficult to travel.” he said to the Standard.
Should Gor Mahia not travel to Congo, they could be staring at the prospect of a CAF ban.
“We are aware of the implications of not honouring the match, but we find ourselves in a situation whereby even if we are able to acquire air-tickets, we will have problems staying in Congo because of inadequate finances.” he said/
Aside from Tuesday’s Fundraiser, Gor Mahia also held in fundraiser in November that was attended by a number of politicians but fell well short of its targets.

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