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Stars doing just enough to keep above the water
What you need to know:
- At about Shs660m spent last season, B. Stars overshot the annual budget by Shs126m
- Of the targeted Shs534m in the 2022/23 budget, Stars collected Shs427m, a deficit of Shs107m
- 2023/24 target is Shs597m, with attracting more sponsors the key driver
- Soltilo Uganda Limited, StarTimes, SEINAN, Yoshino Motors, Jica, Jibu, Melbet, Gorilla Field, Poire, kit sales and gate collections are revenue sources
Soltilo Bright Stars Chief Executive Officer Harold Atukwase is happy with the club’s "steady growth" but not with its prevailing financial state.
The club have managed to prevail in top-flight survival gymnastics since promotion in 2013, establishing itself as a mid-table side.
Bright Stars, who added the prefix 'Soltilo" in 2017 when Japanese legend Keisuke Honda acquired a 70 per cent stake in the Club, also pulled off a first when they reached the Uganda Cup final two years later, losing it to Proline.
The club are, however, still struggling to - not just break even, but keep the head above the water in the financial books.
Vision keeps them going
Like almost all Uganda Premier League (UPL) sides, the Kavumba-based outfit are operating in losses.
But it is the vision of "inspiring hope and belief in young people that their dreams can (one day) come to reality" that keeps them going.
Of Bright Stars' Shs534m budget for the Financial Year 2022/23, for example, they realised Shs427m, over Shs100m short.
Yet the club spent about Shs660m to operate that season, having to figure out how to negotiate the excess spend.
Shs336m of that went to salaries of some 28 senior players, 23 juniors, 18 non-playing staff and other employees in administration.
Bright Stars spend Shs55m per month (Shs28m of it on salaries) on transport facilitation, hosting home and away matches and feeding among other things.
"Much as we are growing steadily," Atukwase explained to the Daily Monitor, "I am not happy with the current state.
"Much as we have created a model that helps optimise resources, we are far from operating as a self-sustaining entity.
Need for real home
"We don’t make much from matchday revenue as compared to KCCA, Busoga and Villa.
"Plans to move to a venue that can allow us to get much more media coverage for our events and one that is much more convenient for our target audience to access are underway."
Bright Stars have previously hosted their matches in Mwererwe - Matugga, but Kavumba Recreation Ground is their hired home for some good years now.
"Our key development aspect for the next 10 years," said Atukwase, "is to secure a home that can allow us to grow in a more stable and sustainable way."
That the club do not make major player sales, a big revenue stream for sports sides, hardly helps Bright Stars balance sheet.
"We are yet to make considerable amounts from player sales," admitted Atukwase.
"We have to tap into football's secondary markets in the Asian region and the monied African continent. At the moment we don’t have enough quality for Europe."
“Overall,” he added, “we are making peanuts compared to what we spend."
Double down on what works
Despite the challenges, the club CEO, Atukwase, believes that they are on the right track and that they have to double down on practices that will lead them to where they aspire to be.
"We have to continue growing the club’s foot print in Uganda and beyond," he said.
"We intend to grow to a 10,000-20,000 fans strong club over the next five to 10 years.
"We also have to foster stronger partnerships across the football fraternity especially with clubs from the first world (Europe, Asia and the Americas) to enable us to get certain economies of scale in the form of; player sales, technical training and staff exchanges (capacity building)."
Atukwase, also a sports lawyer, added: "We have to build strong youth structures (academy) to create a continuous talent pool.
"Acquire for cheap, sale for big money considering the partnerships I talked about earlier."
Push for more financing
For now, Bright Stars - who finished ninth in a 15-team table last season, could do with establishing themselves, consistently, in the top six to steadily boost their brand.
Off the pitch, having some deeper conversations with sponsors SEINAN, Yoshino Motors, Jica, Jibu, Melbet (replaced by Otani Steel this season), Gorilla Field, Poire to increase their kitty wouldn't hurt.
The above combined, together with Soltilo Uganda Limited, broadcast sponsors StarTimes, kit sales and gate collections could only raise Shs427m of last year's Shs534m budget.
Soltilo Bright Stars club structure
Management
Chairman - Ronald Mutebi
Vice chairman - Grace Muguli Kwizera
Directors - Ayumi Inadome, Masato
Tsuchiya, Ahmed Hussein
Management committee
Administration
Chief Executive Officer - Harold Atukwatse
Finance manager - Ayumi Inadome
Manager administration and operations - Stephen Lwanga
Media officer - Emmanuel Otim
Technical team
Head coach - Joseph Mutyaba
Assistant - Tom Ssali
Head of Youth Football - Dan Kirumira
Fitness Trainer - Sulaiman Sebunza
Goalkeeping coach - Alfred Kato
Physiotherapists - Shamim Nasali
Medic - Afua Namayanja Muajumah
Kitman - Karim Kawuta
Team/players
First Team
Junior team
Average domestic costs in a season: Ugx 660m
Transport facilitation: Shs125m per season (Average Shs15,000 per person (players and all other staff) per day depending on where one resides)
Feeding (players, technical, secretariat, support staff): Shs7m per month (daily lunch and breakfast)
Home matches expenses: Average Shs2.5m spent on hosting a home match
Away matches expenses
Arua: Up to Shs7m (transport, meals, accommodation and others)
Mbarara: Up to Shs5m
Kampala/Wakiso: Shs1m
Prize money or bonuses
Contractual and payable with salary at the end of the month. Amounts undisclosed.
But for context, players and coaches take 30 percent of prize money for tournaments like Uganda Cup, UPL etc
There are additional performance-based tokens for goals scored, assists, clean sheets, appearances and national team call-ups
Average total amount paid out in prize money/bonuses: Shs4m to Shs7m depending on performances per month
All salaries, including administration: Shs28m per month gross
Total annual salaries: Shs336m gross
Total average monthly expenses for domestic season, including miscellaneous: Shs55m
Total annual expenses for domestic football season: About Shs660m
Financial books
2022/23 Budget: Shs534m
Realised: Approximately Shs427m, a Shs107m deficit
2023/24 Budget: Shs597m
Key driver: Attract more sponsors. This is the most convenient because it comes with minimal expenditure, according to CEO Harold Atukwase.
Revenue sources
Sponsorships (SEINAN, Yoshino Motors, Jica, Jibu, Melbet (replaced by Otani Steel this season), Gorilla Field, Poire.
Broadcast sponsorship, Shs95m.
Shareholder funding from Soltilo Uganda Limited (majority shareholder at 70 per cent)
Kit sales
Player sales
Gate collections