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<\/p>\nThere has been much talk regarding whether or not Gor Mahia should be listed on the stock exchange.\u00a0 As far back as 1997 when Leslie Okudo was the club chairman he started to take steps towards listing the club on the stock exchange. These suggestions reached a crescendo during the month of November and December when Zdvarko Logarusic departed for home and it looked like the club would not be able to bring him back given his salary demands.<\/p>\n
However as was the case during the Leslie Okudo era, many fans have expressed their reservations.<\/p>\n
It basically comes to<\/p>\n
A. Should the club sell shares (The Manchester United Model)
\nOr
\nB. Should the club remain a public society run by members ( The Barcelona Model)<\/p>\n
<\/p>\n
Advantages of the Barcelona Model<\/strong><\/p>\n 1. Fans have direct control of the club because they can elect officials. If fans are unhappy with officials they can vote them out. Disadvantages of the Barcelona Model<\/strong><\/p>\n 1. The club raises less revenue Advantages of the Manchester United Model<\/strong><\/strong><\/p>\n 1. Listing can lead to increased financial discipline with gains accruing in the longer term. Disadvantages of the Manchester United Model<\/strong><\/p>\n 1. Stock markets favor companies that make profits. Football clubs exist to win trophies and not make a profit. The profit motive can prevent a club from investing in good players. Such was the case when Man U sold Cristiano Ronaldo. 3. All the profits of the club from merchandize, sponsorship and ticket sales could go into the pockets of shareholders and are not invested back into the club. Requirements for listing in the Nairobi stock exchange currently not met by Gor Mahia 1. Fully paid up share capital of Kshs. 50 million. \u00a0Conclusion<\/strong><\/p>\n The Barcelona model when combined with sound fiscal management, transparency and an engaged fan base that holds club officials accountable is a better model for a club like Gor Mahia<\/p>\n Final Poll Results from Voters<\/strong><\/p>\n
\n2. Because the club is not profit driven, all the money the club makes can be re-invested back into the club to make the club stronger.
\n3. Because profits go to the club and not to owners, fans will be eager to support the club by buying merchandize.
\n4. Fans of a social club will be more emotionally invested in the team.
\n5. Club officials are more likely to listen to fans and not to shareholders or owners. Therefore fans have an indirect stake in how the team is run.<\/p>\n
\n2. The calibre of officials running the club are usually less qualified.
\n3. The club is less financially disciplined, is\u00a0 secretive and finances are not transparent<\/p>\n
\n2. With overall sound management of the club and Kenya football in general, the club ca raise much needed capital.
\n3. Publicly listed clubs have better management because the stock market requires it.<\/p>\n
\n2. There is a danger that the club can be taken over by a rich person who is able to buy most of the shares. If a person buys over 51% of the club’s shares, he will have a controlling stake in the club which means he can do whatever he wants without being accountable to fans. He can start charging exorbitant prices for tickets. Or he could move the team to Mombasa or some other town and rename it.<\/p>\n
\n4. The stock of Gor Mahia FC will be negatively impacted by the fact that football in Kenya is poorly managed which means most investors have a negative opinion of football or sports in general.<\/p>\n
\n<\/strong><\/p>\n
\n2. Net assets immediately before the public offering of shares should not be less than Kshs. 100 million.
\n3. Have published audited financial statements
\n4. The issuer must have suitable senior management with relevant experience
\n5. have declared profits in at least three of the last five completed accounting periods<\/p>\n<\/p>\n
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