Nyasa Big Bullets have spent K276 million in two years from the sponsorship deal the team signed with Nyasa Manufacturing Company (NMC) in 2015.
Bullets and NMC signed a K500 million five-year sponsorship agreement, but with just seven games into the new season, the team has K99 million only remaining.
According to the agreement, the club gets K100 million annually, of which K75 million is in cash with K25 million supposed to come from the sale of merchandise.
This was disclosed during the club’s Extra-ordinary General Meeting (EGM) held at Kumudzi Eco Centre in Lilongwe over the weekend.
The new development means that Bullets need to raise at least K170 million to supplement the sponsorship for the next two years.
During the Lilongwe meeting, delegates agreed to transfer the team’s ownership to NMC as the first step towards commercialisation.
The meeting also agreed that after 60 days, the process of de-registering the trusteeship be finalised to pave way for the complete take over.
In an interview in Lilongwe, Bullets’ Board of Trustees General Secretary, Jim Kalua, said the rise in expenditure was as a result of players’ signing-on fees and other debt.
“The steering committee will come up with a document with 10 days. The document will be sent to all potential investors. With these financial problems, it is really important that we get partners [on board].
“Commercialisation in a transparent manner is the only way and we will make sure that transition should be smooth for potential investors who will show interest in the team,” Kalua said yesterday.
Within two months, the steering committee will come up with conditions for the would-be investors, including construction of a stadium, club house and buying a bus.
NMC have been given a chance to take over the team’s ownership and look for other partners.
The Lilongwe meeting also empowered Executive Committee Chairperson, Noel Lipipa, to lead the steering committee to finalise the take over and commercialisation.
After the meeting, Lipipa said the supporters have voted that NMC should take over.
“We have agreed that the team must be commercialised. We should have the owner and the supporters have voted for NMC because they have already shown interest [in the team], hence they should be given a chance to own the team,”
NMC officials could not be reached for their comment on the proposed takeover.
During the meeting, it was disclosed that NMC spend K7 million monthly on players and officials’ salaries.
Bullets are being haunted by huge debts estimated at K124 million.
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