There could be light at the end of the tunnel for most clubs faced with financial constraints during the Covid-19 pandemic. Fifa, that had paid out a total of $150m (Shs571b) to all their 211 member associations globally as one of measures to help deal with financial distress caused by the pandemic, has again dished out a universal solidarity grant of $1m (Shs3.7bn), with an additional $500,000 (Shs1.9bn) grant specifically for women’s football.
This is geared towards protecting and safeguarding football from the adverse economic effects of pandemic in Uganda. But, the $500,000 (Shs1.9b) given to Fufa in April caused a ‘rift’ between the federation and the top flight clubs that sought a financial bailout in this challenging period.
Fifa were particular this time as they branded the financial aid as one of the several measures intended to help football around the world in the face of the pandemic and its aftermath.
“All member associations will be given a universal solidarity grant of $1m, with an additional $500,000 grant specifically for women’s football. Each confederation will also receive a grant of $2m,” read a statement from Fifa website. Aside from the aforementioned cash-ins, Fufa is expecting $200,000 (Shs752m) from Caf and that would bulge their coffers enough to listen to the pleas of the struggling clubs.
Fufa will reportedly receive the amount in two instalments - $500,000 in July and the other half in January 2021. “Like other clubs we have been affected financially and any aid will be warmly welcome. We keep our fingers crossed as we wait for Fufa’s word,” said KCCA CEO Anisha Muhoozi.
Fufa Executive Committee called for an online Extra Ordinary General Assembly to discuss how best the federation will put the grant to use.
“We will ensure that these funds are utilized in accordance with the rules and the objectives for which they are sent. This will go a long way in solving the prevailing situation,” Fufa publicist Ahmed Hussein revealed.
If the pandemic effects continue to hurt the football fraternity, Fufa can go for a jugular by applying for interest-free loans amounting to up to 35 percent of their audited annual revenues.
In the interest of solidarity, a minimum loan of $500,000 will be available and a maximum of $5m.
CASH IN NUMBERS
$4.6b – Revenues Fifa made in 2018.
$2.7b - Fifa cash reserves in 2018.
$1.2b – Net profit Fifa ended 2015-2018 cycle with.
$150m– Total amount Fifa are paying member associations in relief.
$500,000 – Amount each member association will get.
$200,000 (Shs752m) - Caf amount expected soon.
$1.5m - Fifa grant coming in batches for Covid-19 relief.