Story courtesy of the Nation<\/p>\n
The announcement of betting firm SportPesa\u2019s cancellation of all sports sponsorship in Kenya has thrown local football clubs AFC Leopards\u00a0 and Gor Mahia into financial crisis.<\/p>\n
Both clubs, which are sponsored by SportPesa, are now looking at an uncertain future, what with local and continental assignments to be honoured in the yet to start 2018 season.<\/p>\n
Even before SportPesa made the formal announcement, Leopards had indicated that it would not honour its continental engagements this year, in the event of the betting firm\u2019s pull out.<\/p>\n
In a statement on New Year\u2019s day, club chairman Dan Mule also expressed fear that the club\u2019s other activities could ground to a halt in the not so distant future.<\/p>\n
\u201cI can put it here on record that without the backing of SportPesa, the club will not be able to pay salaries and play in continental assignments,\u201d said Mule.<\/p>\n
Mule, who explained that SportPesa\u2019s sponsorship\u00a0helps offset about 70 percent of the club\u2019s monthly Sh6.5 million bill, is now pleading with the government to put on hold the implementation of the new tax regime imposed on SportPesa and other betting companies to allow for dialogue.<\/p>\n
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\u201cIt is with this background that I urge the government to put on hold the implementation of the new tax regime on betting companies in order to facilitate the convening of a stakeholders meeting as soon as possible to discuss the crisis in the sporting arena,\u201d he said.<\/p>\n
Leopards are set to play against Malagasy side FOSA Juniors in the first week of February in the preliminaries of the Caf\u00a0 Confederation Cup.<\/p>\n
Similarly, Kenyan champions Gor Mahia are set to\u00a0compete in the African Champions League this season, with an assignment against Equatorial Guinea side Leones Vegetarianos in the preliminary phase.<\/p>\n
Gor Mahia chairman Ambrose Rachier says the club is considering the resumption of selling branded bread and having a Paybill number emblazoned on the team jerseys should SportPesa also pull the plug on its sponsorship deal\u00a0with the club.<\/p>\n
\u201cThe sports industry is a latent giant, let us not waste this opportunity to develop it by repelling investors from the industry. I therefore plead with the government to rethink this move which will sound a death knell to this very promising\u00a0industry,\u201d Rachier said.<\/p>\n