Clubs, players need to see and live the future in savings

Statutory financial deductions may be delayed but never avoided. However, this depends on the kind of negotiations conducted amongst different stakeholders.

The past weekend saw social media awash with debate on the proposed move by National Social Security Fund (NSSF) to receive the mandatory deductions off players’ salaries and contributions from their employers as required by the Ugandan law.

All this is done in good spirit to secure an adorable financial status and modest life when a player calls it quits with the legs not able to take in any extra miles on the pitch.

The Uganda Revenue Authority (URA) also expects clubs to deduct and remit Pay As You Earn (PAYE) as spelt out in the Income Tax Act as amended.

The services we receive as citizens of this country and the facilities we constantly demand and expect from government are all financed by tax revues, inclusive of PAYE. It is only logical that our members and clubs respect the national laws and remit tax.

It is extremely strange to the football fraternity because of the nature of how certain things have been handled casually in the past.

Some clubs had prepared their players for such moments and started following the law by the script while others knew about it but didn’t expect it to happen under the prevailing conditions where sports is treated as leisure.

It is also true that most clubs and their owners are not making profit despite pushing on with the cause of promoting the beautiful game. This is something even those in authority appreciate.

Yet URA still want to see players pay taxes. There are obviously good reasons for this and if all clubs organised themselves and adhered to the law, football and the stakeholders will benefit the most.

The toughest challenge right now is how football welcomes the news and later draws positives. It is not a ‘Fufa Project’ but the local soccer governing body can play a role with both NSSF and URA to guide all stakeholders by sharing the reality on the ground.

Fufa faced the same experience when professionalism was at the forefront from a typically amateur set up. It is a different story at the institution’s headquarters now following change of mindset on meeting its statutory obligations.

We don’t want to see the football teams go through what the institution faced during the evolution journey.
Fufa will not sit back on the proposal by NSSF. Advocacy will be key during negotiations with authorities, especially on salient issues like the age at which members of NSSF start accessing their savings.

In football, it is very rare for a player to remain active on the pitch until the age of 40. Will they wait for another 15 years to access their funds as required by the NSSF Act? We need to avoid any further cases in the future of former players living miserable lives.

Looking to the long term future, it is important that Government creates a healthy investor friendly environment for the sports sector to thrive. Tax holidays may be granted to potential institutions and companies willing to invest in the areas of infrastructure and production of sports equipment.

To NSSF, sensitisation is needed for the football fraternity. The clubs and their players need to be educated and guided for better results of this exercise. In the current trying times, where clubs are struggling to raise funds to clear salary arrears for players and other staff, I believe NSSF will be glad to give a listening ear.

Mr Hussein is Fufa Communications Director
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