Illovo finally dumps Dwangwa United, Nchalo United


By Isaac Msukwa:

TNM Super League sides Dwangwa United and Nchalo United should brace for tough times ahead as their traditional financier, Illovo Sugar Limited, has announced that it will no longer provide financial assistance to the two teams.

Illovo has been giving Dwangwa and Nchalo an annual subvention of K30 million each.


But the company is yet to release this year’s chunk to the two sides, which are battling relegation.

Illovo Public Relations Officer, Ireen Phalula, said the company will only manage to bankroll Dwangwa and Nchalo until December.

“The two football clubs are not owned by Illovo even though, from time, to time they have been receiving financial assistance from the company in excess of K30 million per team per season. The clubs have also been receiving financial assistance from other companies and well-wishers.


“After the clubs notified us that they were facing financial challenges, we had open and honest engagements with the government where we made an offer to support the teams only up to the end of this football season in December. Beyond that, we will no longer provide any further funding. For the period of four months [September to December], each team will receive K4 million in monthly installments of K1 million each less any overspends that have occurred,” Phalula said.

Phalula said the company also offered advice to the teams on improved financial management and planning to enable them to become self-sustainable.

“We will no longer be able to sponsor the teams because we are in a continuous process of resetting our cost base through performance improvements and cost control initiatives.

“This requires the ongoing focus of everyone in the business. Running a football club is an expensive exercise and, therefore, the company maintains its recommendation made 10 years ago that clubs be commercialised and be self-sustaining,” Phalula stated.

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