Jackpot For Clubs
By Daily Graphic - Daily Graphic
Football News | Tue, 02 Dec 2008
Football News | Tue, 02 Dec 2008
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Ghana's premier league clubs are set to land their pot of gold following the acquisition by Nigerian mobile telephony giants, Glo, of title rights for the Premier League and with extra $1 million booty from TV rights to be shared this season.
GFA and PLB insiders have disclosed to the Graphic Sports that each of the 16 premier league clubs stands to reap close to GH¢200,000 (¢2billion), which is the biggest pay-day ever and almost twice as much as they earned two years ago.
Like the patent dog which chews the fattest bone, the GFA/PLB were $500,000 richer over the Onetouch deal that was abrogated a week before Glo outbid rival MTN with a five-year, renewable deal.
The 16 clubs and the PLB will split the net amount of $3million sponsorship fee into equal parts after agency fees have been deducted.
In addition, a jump in revenue from TV rights from $750,000 to $1 million will provide the clubs with substantial income for the season.
The Graphic Sports learned that MTN also offered to sponsor the league over a five-year period but their $3million-a-year offer was rejected in favour of the Glo deal that makes provision for a 10 per cent increment annually as a cushion against inflation. It implies that next season Glo will pay the GFA $3.3 million at sponsorship fee.
PLB Chairman, Mr Welbeck Abra-Appiah, was extremely excited at the new Glo deal which is expected to be finalised in the next few days after the all parties involved in the deal have ironed out a few outstanding issues.
He was particularly pleased that unlike previous years, the PLB will benefit from a slice of the cake to meet administrative expenses.
In previous years the GFA rather than the league organising body enjoyed a share of the net sponsorship fee as the 17th party.
"This time the PLB made a case for money to be set aside for management of the league, because the PLB Secretariat needs to be run very well for a successful league," said the PLB boss.
And for such clubs as Accra Hearts of Oak, Kumasi Asante Kotoko and Glo Top 4 champions, Liberty Professionals, who enjoy corporate sponsorship from MTN, tiGO and Panasonic respectively, they should find some relief in the new deal.
Hearts Director and management member, Mr Frank Nelson Nwokolo admitted that the new deal would help cushion clubs like Hearts significantly in spite of their huge operational costs.
"I come from a position that it is better than nothing, and we should appreciate what we're getting from the new deal, because from what I'm hearing the clubs will receive more money than we could have got from the Onetouch deal which was cancelled," he told the Graphic sports.
Giving insights into the financial demands in running a big club like Hearts, Mr Nwokolo explained that it costs an average of GH¢10,000 to GH¢11,000 to prepare for matches, representing winning bonuses, transport cost, hotel bills but excluding monthly salaries of players and technical staff.
"We recently received GH¢130,000 representing six months sponsorship money from MTN, which works out as GH¢21,000 per month, and if you factor recruitment which cost of over GH¢250,000, then you'll realise how difficult it is running Hearts."
The GFA were expected to meet the clubs yesterday for a briefing on the Glo deal and discuss any concern by the clubs in respect of their expectations and responsibilities of clubs and sponsor.
Story by Maurice Quansah
Source: Daily Graphic - Daily Graphic
GFA and PLB insiders have disclosed to the Graphic Sports that each of the 16 premier league clubs stands to reap close to GH¢200,000 (¢2billion), which is the biggest pay-day ever and almost twice as much as they earned two years ago.
Like the patent dog which chews the fattest bone, the GFA/PLB were $500,000 richer over the Onetouch deal that was abrogated a week before Glo outbid rival MTN with a five-year, renewable deal.
The 16 clubs and the PLB will split the net amount of $3million sponsorship fee into equal parts after agency fees have been deducted.
In addition, a jump in revenue from TV rights from $750,000 to $1 million will provide the clubs with substantial income for the season.
The Graphic Sports learned that MTN also offered to sponsor the league over a five-year period but their $3million-a-year offer was rejected in favour of the Glo deal that makes provision for a 10 per cent increment annually as a cushion against inflation. It implies that next season Glo will pay the GFA $3.3 million at sponsorship fee.
PLB Chairman, Mr Welbeck Abra-Appiah, was extremely excited at the new Glo deal which is expected to be finalised in the next few days after the all parties involved in the deal have ironed out a few outstanding issues.
He was particularly pleased that unlike previous years, the PLB will benefit from a slice of the cake to meet administrative expenses.
In previous years the GFA rather than the league organising body enjoyed a share of the net sponsorship fee as the 17th party.
"This time the PLB made a case for money to be set aside for management of the league, because the PLB Secretariat needs to be run very well for a successful league," said the PLB boss.
And for such clubs as Accra Hearts of Oak, Kumasi Asante Kotoko and Glo Top 4 champions, Liberty Professionals, who enjoy corporate sponsorship from MTN, tiGO and Panasonic respectively, they should find some relief in the new deal.
Hearts Director and management member, Mr Frank Nelson Nwokolo admitted that the new deal would help cushion clubs like Hearts significantly in spite of their huge operational costs.
"I come from a position that it is better than nothing, and we should appreciate what we're getting from the new deal, because from what I'm hearing the clubs will receive more money than we could have got from the Onetouch deal which was cancelled," he told the Graphic sports.
Giving insights into the financial demands in running a big club like Hearts, Mr Nwokolo explained that it costs an average of GH¢10,000 to GH¢11,000 to prepare for matches, representing winning bonuses, transport cost, hotel bills but excluding monthly salaries of players and technical staff.
"We recently received GH¢130,000 representing six months sponsorship money from MTN, which works out as GH¢21,000 per month, and if you factor recruitment which cost of over GH¢250,000, then you'll realise how difficult it is running Hearts."
The GFA were expected to meet the clubs yesterday for a briefing on the Glo deal and discuss any concern by the clubs in respect of their expectations and responsibilities of clubs and sponsor.
Story by Maurice Quansah
Source: Daily Graphic - Daily Graphic
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