FAM blows out Carlsberg allocation, justifies expenditure

Football Association of Malawi (FAM) has become under-fire to justify its expenses after blowing out Carlsberg Malawi sponsorship annual allocation with government refusing to provide financial resources for the Flames’ 2015 Africa Cup of Nations remaining fixtures.

Government said will no longer fund Flames’ fixtures, forcing FAM to suspend camp training for the national team in preparation for games against Mali on 15th November and Ethiopia.

FAM has been put under scrutiny as to how the Flames found itself in this predicament despite penning a three-year K250 million sponsorship with deal Carlsberg Malawi aside exclusive branding rights for the team’s regalia and apparel, training kits and training equipment’s for all national team engagements.

Besides the lucrative sponsorship deal, Flames have been generating millions through sells of replica jerseys, broadcasting rights, and through gate collections with a minimum of K13 million collected per game. Local radio stations pay about K550,000 for broadcasting rights.

But FAM has already blown out the yearly allocation out of the K250 million sponsorship five months after the deal was signed despite government also providing the team’s funding. The Carlsberg
sponsorship detail stipulates that Flames would get K50 million in the first year with the remaining K200 million to be used in two years.

FAM General Secretary, Suzgyo Nyirenda in an exclusive interview, said the funding the national team get was not enough despite the lucrative sponsorship deal, adding the association’s marketing department was failing to generate enough funds to support the team.

“We used this year’s allocation- K50 million- for the games against Chad but was not even sufficient in that we had to add on our own funds. The allocation we got from government of about K70 million had been used to carter for games against Benin- home and away- as well as for Under-21 games, but that was also not enough,” explained Nyirenda.

Nyirenda said the association has been forced to use funds generated from gate collections to supplement the team’s expenses which including players’ training allowances.

“FAM earlier on requested funding million from government for Flames’ games but was advised to trim the budget; We have been using the gate collections from which government and Sports Council get 25% each to supplement the funding deficit. Out of K13 million collected out of
Algeria’s game, FAM got only K1 million,” Nyirenda added.

He said Flames’ funding is solely government’s responsibility, arguing the association uses FIFA funding for its operations including staff salaries.

Nyirenda also said Flames’ training camp has been postponed until funding has been identified as the association is reluctant to incur debt to cover for the expenses.

As it stands, Flames will be forced to pull out of qualifying for next year’s Africa Cup of Nations because.

The Flames sit in third place in Group B, with matches against second-placed Mali and bottom side Ethiopia to come.

Carlsberg Malawi Commercial Director Allen Mc lnnes disclosed during the sponsorship signing ceremony in May this year that the package was aimed at encouraging the Flames to go an extra mile and become the top football team in the continent and make a mark in the World.

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