KCCA desperate to increase cash flow

However, recent absence from continental football and lack of domestic silverware have seen them struggle to keep revenue taps running as fairly fluently as they did when KCCA entertained in the Champions League under Mike Mutebi.
When they had StarTimes on their shirts on a Shs400m a year deal, plus Prime Media, Britam and MTN, the combined revenue from partners stretched to about Shs800m per season.

SEE TV, who offered a slightly higher monetary deal to replace StarTimes on KCCA shirts, hardly saw the light of day, with stadium lighting partner, CHiNT Electric, now taking over the former’s place on the tops.  

As of today, stadium naming rights holders - MTN, Britam and 22 Bet are combining for miserly Shs350m per year to KCCA, a significant fall. 

Broadcast sponsors, StarTimes, paid KCCA - as they did other UPL clubs - Shs95m last season. The fee remains the same this campaign.
 

The challenge

“That is the real challenge,” KCCA Chief Executive Officer (CEO) Anisha Muhoozi told the Daily Monitor, “the cashflow challenge. But we are doing our best to get back where we were, even surpass it.”

Dropped player sales, absence from the Champions League since 2019 and Confederation Cup in 2021 has all had a hit on the club revenues and ability to attract new sponsors. 

KCCA’s last league title came in 2019, and the last major player transfer deal came in 2020 when they sold Allan Okello to Algerian club, Paradou, in the region of $200,000 (about Shs700m).

“The last two years really hurt us in terms of player sales. Some people may not fully appreciate it but nurturing and selling players helps our revenues a lot,” explained Muhoozi.

Obligations met

KCCA, who failed to meet their 2022/23 Shs5.4b budget by Shs1.4b, may be taking a hard look at themselves - by their own new standards - but they are still some distance ahead of most of the chasing pack.
 

They have a fairly decent club structure, and - despite a drop in financials and silverware, KCCA still carry out their obligations including staff welfare.

KCCA spend about Shs220m a month to keep the club running domestically, translating into about Shs2.6b per year. 
Of that, Shs160m gross is paid in salaries per month, translating to Shs1.9b annually. 

Continental costs, rewards

And if on the continent, they averagely spend between Shs700m and Shs1.8b depending on how far they go in the tournament and destination.

When they reached the Champions League group stage in 2017/18, where they finished third in their pool, KCCA earned Shs2b ($550,000). That’s since been increased by Caf to Shs2.5b ($700,000).

KCCA represented Uganda in the Confederation Cup this season, where they missed out on Shs1.4b ($400,000) group stage kitty after being eliminated by Libya’s Abu Salem in the second preliminary round.

On a relieved note, they saved between Shs250m to Shs300m when they got a bye to the preliminary second round, money they would have otherwise spent on two extra first round fixtures, which also includes air tickets.  
 

Travel costs normally leave a huge dent on clubs but they reduced significantly in the 2019/20 season after Fufa - using some of the money from government - took over air ticket expenses for clubs representing Uganda on the continent. 

Unfortunately, the federation announced this year it was ending the relief.

Intangible value 

“If you have trips to North Africa like Tunisia, Algeria, Morocco, where an air ticket goes for S1,200, you are counting Shs300m every two home and away matches,” explained KCCA CEO, Muhoozi.

“That is about Shs900m in the preliminaries and Shs1.8b in the group stage. So when you look at the figures, we may not be making the money we want but there is bigger intangible value to that.
 

“Players get a bigger platform and we get to sell them and make returns, for example Allan Okello when we played Paradou.

“Our brand value also increases, which comes with more attraction, thus more appeal to sponsors. That’s why returning to the continent is important to us.”

The stadium construction, which has forced KCCA to pay St Mary’s Stadium, Kitende huge amounts to host their Caf matches there, has also affected gate collections at Lugogo.
 

This newspaper understands that St Mary’s charged KCCA Shs35m to host AS Kigali a couple of years ago at St Mary’s Kitende and Shs100m to host Libya’s Abu Salem this season. 
 

It could have been three times more if KCCA had progressed to the group stage.
 

The MTN Omondi Stadium, however, still brings in some money. The KCCA versus Vipers home game last season raised some Shs41m. 

Lugogo stadium hire for other activities also earns the club Shs150m per year, while merchandise sales have grown to bring in some Shs120m annually, an area the club is encouraging fans to embrace more.

The Authority, which contributes between Shs1b and Shs2b annually depending on disbursements from the government, remains KCCA’s main dependable source of income.

With their target of reaching the Caf Confederation Cup group stage gone, KCCA will now look to the Authority, improving player sales, selling more merchandise and attracting more sponsors among others to meet their 2023/24 Budget of Shs7b.

• Targeting Shs7b in 2023/24 FY
• Aiming for continental group stage to earn at least Shs1.4b (failed at this)
• Pushing for more merchandise and match ticket sales
• Courting more sponsors to improve dropped revenue 
• Pushing for more titles, player sales 
• Realised Shs4b last year, a Shs1.5b deficit from the projected Shs5.4b. Want to improve that.
• Have only Allan Okello to show in major player sales in last three years
• Club remain in good place to take care of its obligations

KCCA club structure

Patron - Lord Mayor Erias Lukwago

Management

• Chairman - Andrew Sserunjogi Mukiibi
• Members - Paul Mugambe, Jeremiah Keeya Mwanje, Nusifa Nakato, Peter Kibazo, Ivan Kiirya, Tom Lwanga, Jackson Mayanja, Joseph Kirimanyi

Administration

• Chief Executive Officer - Anisha Muhoozi
• Finance manager - Michael Kirunga
• Manager administration and operations - Moses Kaddu
• Media officer - Moses Magero

Technical team

• Head coach - Abdallah Mubiru
• Assistants - Kefa Kisala & Jackson Magera

KCCA average domesticcosts in a season

Transport facilitation: Shs10,000 per player, per day (total Shs320,000) for up to 32 players (about Shs8m per month) 

Technical team transport facilitation: Between Shs10,000 and Shs20,000. About Shs4.6m per month for 10 people.

Feeding: Shs15m per month 

Home matches expenses: Shs6m spent on hosting a home match on average. Bigger home matches involving say, KCCA vs Vipers, KCCA vs Villa could go up to Shs8.7m in costs 

Away matches expenses 

• Arua: Up to Shs16m 
• Mbarara: Up to Shs15m
• Kampala/Wakiso: Shs1.5m

Away matches per diem (if they spend a night there)

Coaches: Shs100,000 each. Average cost is about Shs800,000 because not all technical team members travel

Players: Shs50,000 each. Cost averages Shs1m for up to 20 players that travel

Prize money 

Head coach: Shs200,000 for a win

Players & rest of the coaches: Shs100,000 each for a win, with additional performance-based bonuses depending on individuals contracts

Average amount paid out in prize money & bonuses: Shs3.4m per month 

All salaries, including administration: Shs160m per month gross 

Total annual salaries: Shs1.9b gross

Total average monthly expenses for domestic season, including miscellaneous:About Shs220m depending on trips made and destination

Total annual expenses for domestic football:AboutShs2.6b

…………………………………………………………………………………………..

Costs to play at the continent

Away trips

Air tickets examples

• Kigali (to play AS Kigali): About Shs59m (32-man contingent, with each ticket costing about $500). This was taken care of by Fufa.
• North Africa (Algeria, Tunisia etc): Shs142m (each ticket going for $1,200)
• Angola: Shs94m

On average, air tickets for three away preliminary matches could go for as low as Shs177m, and as high as Shs426m. Multiply the aforementioned if the team advances to the group stage.

Accommodation: Shs47m (3 nights at $130 full board each). That’s Shs141m for three preliminary stage trips. 

Visa: Shs5.9m (about Shs18m for three trips) 

Per diem: Up to Shs19m (x 3 = Shs57m) 

Home continental matches

Home club pays match officials as follows;

Match commissioner allowance: $1,200 (Shs4.4m x 3 home matches = Shs13.2m)

Fufa guide: $300 (Shs1.1m x 3 home matches = Shs3.3m) 

Full board accommodation at a 3-star hotel

One match commissioner, 3 referees, 1 fourth official, 1 referee assessor: Shs450,000 per night x 6 = Shs8.1m. (Shs24m for three home games) 

Six match officials air tickets: Averagely $1,000 x 6 = Shs22.2m (Shs66m for 3 home matches) 

Inland transport

Match commissioner: 1 car

Match assessor: 1 car

Referees: 1 car

Lead car for all the above: 1 car

Each car charged at Shs250,000: That’s Shs1m, and Shs3m for three home matches.

Visiting team bus: Shs400,000 fuel for KCCA bus, which visitors normally use. That’s Shs1.2m for three preliminary home games.

Team bus lead car: 1 car (Shs250,000 for one match, and Shs750,000 for three home matches)

Leader of delegation lead car: 1 car (Shs250,000 for one match, and Shs750,000 for three home matches)

St Mary’s Stadium, Kitende hire 

• KCCA paid Shs100m in stadium hire for the match against Libya’s Abu Salem in September, 2023
• Earlier paid Shs35m for the home match against AS Kigali in January, 2021
• At current stadium hire charges at St Mary’s, three continental home matches would cost the club Shs300m. That’s three times more if the club advances to the group stage.

Average spend on the continent

• KCCA spent about Shs300m on home and away (North Africa) matches on the continent when club were paying for air tickets 
• The club spent about Shs600m for four Champions League preliminary round matches against African Stars (Namibia) and Angola’s Petro de Luanda, with about Shs400m of that spent on the trips to the said countries 
• KCCA spent another Shs300m in two more Confederation Cup games against Algeria’s Paradou in 2021 
• If the club proceeded to play in the group stage, for example, as was the case in the 2016/17 and 2017/18 seasons, they would have spent about Shs1.8b on competing in six preliminary matches and as many in the group stage

NOTE: Travel costs reduced significantly from the 2019/20 season after Fufa took over air ticket expenses for clubs representing Uganda on the continent. Unfortunately, the federation announced this year it was ending the relief.

Estimated average spend on the continent per season: Between Shs700m to Shs1.8b (from preliminaries to group stage)

Total estimated domestic spend + continental costs (min to max): Between Shs3.3b and Shs4.4b a season

Revenuesources

Kampala Capital City Authority: Between Shs1b to Shs2b annually (over the years) 

Player sales: About Shs700m from Allan Okello sale to Paradou (Algeria) in 2020

Continental target: Earn at leastShs1.4b by reaching the group stage of the Confederation Cup in 2023/24. This plan was halted by first round elimination from the continent

What a preliminary ‘bye’ meant for KCCA in the 2023/24 season

• The club were given a bye from the first preliminary round in 2023/24 Confederation Cup, saving KCCA an estimated Shs300m they would have spent in hosting the two extra home and away fixtures 

Gate collections

• Peak was Shs386m in the 2017/18 season, up from Shs77m in 2015/16 campaign. 
• KCCA vs Mamelodi Sundowns in 2017 had the most fans at about 6,000
• But today, because of stadium construction, attendance is limited to about 4,000 fans. The new stadium has a 10,000 capacity.

• Shs41m was collected vs Vipers at Lugogo last season 

Corporate sponsorship

MTN, Britam, 22 Bet: Shs350m per year

CHiNT Electric: Stadium lights partner 

Stadium hire revenues: Shs150m a season

Merchandise sales: Shs120m, a steady raise from Shs40m and Shs60m

Broadcast sponsors (StarTimes): Shs95m

Financial books

2022/23 Budget: Shs5.4b

Realised: Shs4b, Shs1.4b less than projected and Shs100m less than the previous financial year

Major reason for decline: Reduced player sales and absence from continent in last couple of years, poor returns at home

2023/24 Budget:Shs7b

Key drivers: KCCA (Authority) annual disbursement, must reach Caf Confederation Cup group stage (eliminated in first round), improve player sales, sell more merchandise, attract more sponsors