1 February 2013

Tanzania: Clubs Should Benefit From Gate Collections

MAINLAND Premier League clubs breathed a sign of relief after the government agreed last week, to review deductions from National Stadium gate collection revenue, in which teams are now earning decent amount from their matches than before.

The government revised the way gate collections from matches are shared, in a bid to maximize profits for clubs which are complaining that they are being robbed by the stadium owner, who they felt it was getting a gargantuan share than the clubs.

They have been complaining that the cut from the share of the gate collections leaves them in tatters as they only earn 'peanuts' and a trend they argued, was impoverishing the already financially struggling clubs. The issue always comes to the fore during the high-priced Dar es Salaam derby between Simba and Yanga, which has always glossed hundreds of millions of shillings but, after giving deductions, the clubs only got what they claimed to be a paltry amount.

Surely, the clubs should earn better because they are the ones attracting huge crowd and without them, no turnout will be seen at the venue. And the government's latest decision comes as a huge relief for them (clubs). The Deputy Minister for Information, Youth, Culture and Sports, Amos Makalla, said the government which solely owns the venue will only deduct 15 per cent of the collections after Value Added Tax (VAT).

After a number of meetings among the government, Mainland Premier League Committee officials, the National Sports Council (NSC) and the Tanzania Football Federation (TFF), it was agreed that the state should take only 15 per cent of the revenue and get away with the other fixed cost being deducted before.

The 15 per cent collection from each match that will be played at the venue will also cater for all previous deductions that have now been erased, including deduction for the National Stadium Management, Beijing Construction 2m/-, security, cleanness and electricity.

Such deductions have always been deemed 'burdensome' to clubs; this is why the government felt it was wise to review the structure. Apparently, this latest development is commendable and will to some extent help strengthen the clubs' capacity to improve their coffers.

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