Showing posts with label Caf. Show all posts
Showing posts with label Caf. Show all posts

Friday, February 26, 2010

Why CAF’s $1.5 million prize money is just not enough

orange_Champions_LeagueGary argues that the money given at the end of Africa’s grueling continental club competition is inadequate for the finances of many Ghanaian – and African – teams.


The CAF Champions League is one of the longest running continental club competitions in world football. It first started out as the African Champions Cup in 1964, before it was redesigned to its current format in 1997.

In between this period, there were hardly any sponsors for the tournament and no prize money was paid to the clubs. They were mainly motivated by the quest for sporting glory and prestige as well.

Since the continent's leading club competition took on its present format where the eight top teams qualifying for the money-spinning group phase then go onto a knockout semi-final and a final played over two legs, however, the overall winners are guaranteed prize money of a million US dollars.

In September last year, the CAF Executive committee put this amount up by 50% beginning from this year's edition of the annual tournament. This was possible because of the appointment of Orange, the new title sponsors for the competition.

Admittedly, CAF have taken positive steps forward since Issa Hayatou took over the leadership of the organisation in 1988. Yet, it must be said that despite the many strides of CAF in all these years, the organisation have fallen far short in the marketing of their commercial rights, as I wrote in my last piece.

Like its sister football confederations, CAF rely on an exclusive marketing agent to sell their commercial properties. But there have been allegations of compromises on the part of the leadership CAF in respect of this partnership.

One would have expected that CAF would be transparent about their sponsorship earnings, making public all the details of how much a sponsor has committed to their various competitions and events. But that has not been the case and this has fuelled more speculation that a lot of money meant for football in Africa is being paid under the table into private pockets.

Better marketing would mean more money for CAF and more money for the clubs and the players.

Officials are often quick to argue that CAF are lagging far behind the likes of Asia Football Federation (AFC) and the European Football Union (UEFA) because the African economy cannot compare with that of those continents.

Yet, the difference between these continents is, for want of a better word, annoying.



The problem

Money matters have always been a focal point of managing football clubs everywhere. Recent headlines of Portsmouth FC in England staring administration in the face makes for grim reading and the sad thing is that this phenomenon is being replicated all around the world. In Ghana, we have a football financial crisis of our own.

For the past several seasons, monetary issues have meant that the teams that finished in the top four places of our country’s elite league have played checkers with taking part in African club competitions.

This weekend sees Asante Kotoko play ASC Linguere, a Senegalese team, in the second leg of their Caf Champions League competition. They need to win by a good scoreline but they are not only fighting for their place on the field. They desperately need a good win to help them get into the so-called ‘Money Zone’.

Getting into this year’s continental competitions itself was a problem for Ghana’s teams. For example, despite finishing second in last season’s league, the Kumasi-based side nearly dropped out because their financial projections showed that they simply could not foot the bill for playing in the tournament.

Kotoko were only bailed out by an undisclosed amount given them by the Ghana League Clubs Association (GHALCA). Sources say the dosh was $20,000. Whether that amount can take them far enough in the competition is another issue.

Many Ghanaian clubs are in serious debt as we speak and are only operating because of reasons of stature, who-you-know and benevolence from their debtors. Conservative estimates say that Hearts of Oak are in debts accruing to about GH¢2.7 million (just under 2 million dollars).

Going into African club competitions means airfares, hotel costs, player and technical team allowances and many more. As Ghana’s only representative on the continent, even if Kotoko should win the African Champions league, the money they would make is just $1.5 million.

Let’s put this amount into perspective. When Kotoko left Ghana on February 10 for their first leg game in Senegal, their spending totaled so much more than the $20,000 they were given by GHALCA. Now, multiply these figures by the number of times Kotoko would travel outside Ghana if they should get to the final of this year’s Champions League. That brings you to far more than the $1.5 million. Sources have revealed that the $20,000 stipend from GHALCA only covered the costs of the Senegal trip a fortnight ago.

Later, you may be reading about how much Hearts of Oak wanted to spend on this year’s CAF Champions League and why they were thwarted.

Annoying

UEFA pay each team that qualifies for the Champions League €3 million Euros plus another €2.4 million for reaching the group phase. A group stage win is worth €600,000 and a draw is worth €300,000.

In addition, UEFA pay each quarterfinalist €2.5 million, €3 million for each semi-finalist, €4 million for the runners-up and €7 million for the winners.

In Asia, the total budget for the 2009/2010 Champions League is $20 million. Of that, 70 per cent is dedicated to prize money and incentives, with the eventual winners taking home $1.5 million plus bonuses from earlier rounds. A victory in the group stages will be worth $40,000.

On face value, a million dollars is a small fortune, but when one computes the cost of travel across Africa for a club, as well as the ever-rising costs of running such a club, this cash prize is already overdrawn before a club has played its final group matches.

Before you say we should not compare apples with oranges, do not forget that Africa also has some of the biggest companies in the world, spread over varied business interests and who will love to be involved with African football. So why don’t they like to do so? The answer is simple: too much stress with getting CAF involved with the various competitions.



Apathy
Just as an example, the annual budget for a ‘Top 4’ club in Ghana is around one to two million dollars. This is to cover their travel and boarding within the country, as well as the general running of the club - players' salaries and bonuses, hiring of match venues, taxes, medical expenses, indemnities for referees, among other expenditure.

South African clubs have been known to withdraw or show less enthusiasm for the competition, because one of their several local tournaments earn them far more than they would get featuring in the CAF Champions League.

Generally, most clubs have, therefore, in the past 12 years operated deficit budgets to compete in the Champions League and one would then have expected that their patience and perseverance would have been better rewarded by the competition organisers with a cash prize far in excess of the $1.5 million that this year's Champions League winners will receive.

Officials complain of the football talent drain from Africa, but if they cannot help to improve the working conditions on the continent through such measures like better remuneration for the clubs, African players will prefer to take up the slave contracts that are pushed at some of them in Europe and beyond.

What to do
The current holders of the CAF Champions League, TP Mazembe, had a budget of $5 million last year and this year it's now $10 million. How can you reconcile that with the prize money?

Currently, CAF’s charges for the prize money from television and marketing revenue was ratcheted up recently from a total of US $3.5 million to some US $5 million and for me, the amount given to the winner out of this total should be increased. After all, it is they who do the travelling and the playing.

Secondly, where are all the sponsors who pump money into the African Nations’ Cup? Basic rules of marketing dictate that if CAF decides to give them a good deal, they can extend the sponsorship packages to the Champions League (and all other CAF competitions for that matter.)

Finally, the final destination of all the money CAF accumulates in every fiscal year beggars belief. This is certainly not a hasty generalization, for there are facts. CAF's financial report, released ahead of their congress in Luanda during Angola 2010, said the organisation had an operating profit of $939,000 over the last financial year and a cash balance of $18.8 million.

Are we seriously saying that out of all these figures in addition to sponsorship deals for the various CAF events are not enough to pay winners of CAF competitions at least $5 million?

It’s a pity we do not have access to CAF’s financial books - it should make for some very grim reading.

This feature also appeared on Ghana WCB

Saturday, February 20, 2010

AFCON 2012 Draw is out minus Togo.

The draw for the 2012 Orange Africa Cup of Nations which will be staged by Equatorial Guinea and Gabon was conducted in Lubumbashi today by the Confederation for African Football (CAF).

Forty-four teams will take part in the qualifying series that begins in September. But only 14 will book a berth to the continental showpiece.

The sides have been drawn into eleven groups of four and will each play each other in a round-robin format. The winners of each group will qualify automatically for what will be the 28th edition of the AFCON while the three best second placed teams will also make it. Equatorial Guinea and Gabon qualify automatically as co-hosts. The groups in full:

Group 1: Mali, Cape Verde, Zimbabwe, Liberia
Group 2: Nigeria, Guinea, Ethiopia, Madagascar
Group 3: Zambia, Mozambique, Libya, Comoros
Group 4: Algeria, Morocco, Tanzania, Central Africa Republic
Group 5: Cameroon, Senegal, Congo DR, Mauritius
Group 6: Burkina Faso Gambia Namibia Mauritania
Group 7: Egypt, South Africa, Sierra Leone, Niger
Group 8: Cote d’Ivoire, Benin, Rwanda, Burundi
Group 9: Ghana, Congo, Sudan, Swaziland
Group 10: Angola, Uganda, Kenya, Guinea-Bissau
Group 11: Tunisia, Malawi, Chad, Botswana

I'm sure you noticed there is no Togo. That's because the Court of Arbitration for Sport (CAS) will soon come to a (positive, I hope) decision on whether it will upheld CAF’s ban of Togo from the next two editions of the competition. If CAS should rule in Togo’s favour in the case, CAF has confirmed that there is no material obstacle for a new draw to take place before qualifying gets underway.

Thursday, October 22, 2009

Adebayor's first name is Samuel. According to Caf

There is something in journalism and blogging called typographical errors. But some are quite beyond reproach.

If you take a second to see the website of the Confederation of African Football, it says that former Arsenal striker and now Manchester City man Adebayor is called 'Samuel'.

Just scroll to the bottom right part where you can see the opinion poll.

From what I know (and apparently, FIFA agrees with me) the lad is called Emmanuel, not Samuel. Shame on them!

And the even the question for the poll is quite silly: 'Who is currently the best player at the moment?' Too vague.

Africa...would the bigwigs ever learn that attention to detail counts for something?

Wednesday, July 29, 2009

Building on the 2010 success


South African officials are discussing bidding to host the 2020 Olympics, capitalising on the investment in the country's sports infrastructure for next year’s World Cup.

The Iol.co.za website reports that sports and Recreation Minister Makhenkesi Stofile said after a meeting about World Cup preparations that progress on that project meant the country had more confidence in resubmitting a bid to host the Olympics.

Cape Town lost out to Athens in the final round of the host bidding process for the 2004 Summer Games.

Durban has expressed interest in hosting the event, by saying that the Moses Mabhida stadium being built there for the World Cup could be expanded to 85,000 spectators for 2020, if required.

However the Recreation Minister’s spokeswoman Lerato Mogorosi said the issue had not yet been put before the cabinet.

“The bid only opens at the 2012 Olympics in London,” she said.

“It is not confirmed but it is being seriously discussed by the South African Sport Confederation and Olympic Committee.”


Hayatou's baby

The newly constructed CAF (Confederation of African Football) football academy in Yaounde, Cameroon is set to admit its first players soon.

The infrastructure has been made accessible by a 3km tarred road from the Douala highway to the complex. The CAF academy is an ideal location for the preparation of high level sportsmen.

The CAF complex is comprised of a 20 room hotel, two training fields (one of which is artificial), an administrative block, two swimming pools, a multipurpose field and a water treatment plant, covers a surface area of 23 hectares.

Apart from using local energy, the complex has three generators that serve as back-up when local energy supply is inadequate. Construction work on the complex began in December 2006.

"We owe sincere gratitude to the Cameroonian government, which helped us to reduce the cost of the project by exonerating custom duties on materials meant for the work," said CAF president Issa Hayatou.

The creation of CAF Academies falls in line with the development programme of the Confederation, helping to provide the continent with quality infrastructure.

I really hope we could have more of these around the continent. Ghana has its own Soccer School of Excellence but it is - as usual - piteously under-equipped. The last time I visited the place it looked a bit out of sorts.

The Yaounde, Dakar and Addis Ababa academies are the three regional centres that have already been completed.

Each of Cameroun's academies shall host seminars, refresher courses for actors in the area of refereeing, training, administration and sports medicine.

The Yaounde academy shall be the base for the sport in the Central African sub region.

Tuesday, July 28, 2009

EXCLUSIVE: Orange taking over from MTN at Caf. What's the deal?

A new deal will see telecommunications company Orange sponsor all major competitions organised by the Confederation of African Football (CAF) over the next eight years.

The deal was brokered by the Sportfive agency. Caf's website says:

"In addition, Orange becomes new media broadcaster of these competitions through mobile offers across 55 countries in Africa."

Orange will title sponsor Caf’s flagship competition the Africa Cup of Nations, will receive television and mobile rights in France for CAF competitions, and will broadcast CAF events on mobile in 55 African countries.

The new partnership begins with the 2009 CAF Champions League, which begins this month.

The competitions covered by the agreement are: the Africa Cup of Nations (held every two years), the African Nations Championship (held every two years), the African Youth Championship (held every two years), the CAF Champions League (annual), the Confederation Cup (annual), and the CAF Super Cup (every year).

Reaction

A senior colleague of mine (who definitely does not want to be mentioned) tells me that this move by Caf is hardly surprising:

"MTN are not keen on caf anymore because the corruption at Caf is huge.

They [Caf] wanted to give all the rights for the various tournaments to Glo because Mike Adenuga Jr [CEO of Glo] is a personal friend of Hayatou's.

But that deal backfired because Glo couldn't pay [the amounts involved]"

After that deal reportedly backfired, Caf went back to MTN for help. Talk about asses.

And of course MTN felt slighted and said no.

Suspicions

As it is many analysts are suspicious of the deal, one of whom is my senior colleague (who still doesn't wanna be named):

"I'm suspicious because of Orange's presence in Africa. They are in only 5 or 6 countries here: CĂ´te d’Ivoire, Cameroon, Senegal, Guinea and Botswana."

The money aspect of the deal is not yet known but if you recall, last year CAF put a value of 100 million euros ($143 million) for a comprehensive and long-term package of its competitions when it opened tenders for a new sponsor.

Coup

This deal is definitely a big deal for Orange because the African Nations' Cup is now a very attractive and big commodity. With the 2010 FIFA Soccer World Cup is expected to have a world-wide TV audience in viewership of 26 billion, MTN would have hoped that some of that huge number would have watched them put on the dress rehearsal that Angola 2010 would have been.

According to CAN sponsor Canon, the potential accumulated global TV audience for the 2008 tournament was close to 4 billion.

Last year, 143 of the 368 players at CAN were drawn from elite European clubs, according to Time and these numbers were just low estimates.

MTN may have lost the Nations' Cup but they still have the Fifa World Cup to milk dry. They launched the festivities with MTN Nigeria last Saturday, and although they would look back at the Nations Cup with fondness, one can't help but notice what a big blow it would be for the y'ellow boys.

But maybe not, because in 2006, MTN did make clear that the World was their biggest deal in terms of significance despite the fact the the accumulated profits they may have made since sponsoring the Nations Cup may be more.

When MTN was announced as the sponsor of the Nations Cup, people felt a kinship with it because MTN can be said to be a company with deep African roots, having started in South Africa. But Orange, a French company through and through, may not have the same love that the previous sponsor encountered.

Previous title sponsors of the event have included Nokia and Coca Cola.

Whoever is in charge of Orange should know that this event is close to the heart of Africans, so we do not want any shenanigans.


Sunday, July 19, 2009

Broadcasting row. This time in Egypt.

A few days ago I spoke of broadcasting issues that were brewing in Ghana.

A new TV broadcasting row has erupted in Egypt with the country’s football association threatening a black-out of the Egyptian Super Cup fixture between League champions Al Ahly and Cup winners Haras Hedood on July 21.


British company IMG have bid EGP140 million (US$25-million) to become host broadcasters of domestic league and cup matches in Egypt, while the traditional broadcasters, the Egyptian Radio and Television Union (ERTU), are only willing to pay EGP90 million (US$16-million).

Regulations do not dictate how broadcast rights should be handed out in Egypt, but it is clear the FA would rather keep it local. Given the impasse, the FA are threatening not to allow any broadcast of the Super Cup, the traditional opener to the League season.

"We stand firm on our decision. The match will not be aired," Egyptian FA president Samir Zaher said.

Monday, July 13, 2009

Cecafa Cup ends with a mild surprise

Continental giants and the host of this year’s CECAFA Club Championship, El-Meraikh, were unexpectedly humbled 1-0 by Atraco as the Rwandans claimed the title for the first time in their history.

The epic final, held at Stade El Mereikh on Sunday night and watched by a huge crowd, saw the biggest upset in the 34-year history of the championship.

Hamisi Kitagenda scored in the 15th minute to reward his side's great show in the opening period of the match. After that, the Rwandans escaped a fierce onslaught by El Mereikh, who hit the cross bar and had another effort headed off the goal-line with 'keeper Eric Ndayishime well beaten.

The outcome was all the more shocking because El-Mereikh had hammered Atraco 6-1 in the group stage. Furthermore, it was the first time the Rwandan side had reached the final.

In the third-place match played earlier in the day, TP Mazembe beat Kenyan champions Mathare United 2-0 to win the tournament’s bronze medal.

Thanks to goal for the info.

UPDATE:

Most CECAFA Cup wins

Wins Nation Year(s)
10 Uganda 1973, 1976, 1977, 1989, 1990, 1992, 1996, 2000, 2003, 2008
5 Kenya 1975, 1981, 1982, 1983, 2002
4 Ethiopia 1987, 2001, 2004, 2005
3 Sudan 1980, 2006, 2007
3 Malawi 1978, 1979, 1988
2 Zambia 1984, 1991
2 Tanzania 1974, 1994
1 Rwanda 1999
1 Zimbabwe 1985
1 Zanzibar 1995

Number of participations by team

Cups Nation Latest cup
30 Uganda 2007
29 Kenya 2007
28 Tanzania 2007
27 Zanzibar 2007
18 Malawi 2006
18 Somalia 2007
17 Zambia 2006
15 Sudan 2007
13 Ethiopia 2007
11 Rwanda 2007
9 Zimbabwe 1990
8 Burundi 2007
8 Eritrea 2007
7 Djibouti 2007
2 Seychelles 1994
2 Kenya 'b' 1994
2 Rwanda 'b' 2001
2 Uganda 'b' 2000
1 Sudan 'b' 1996
1 Tanzania 'b' 1992
_____