Gor Mahia and AFC Leopards are staring at more financial constraints after their sponsor – Betsafe slashed a “minor” percentage of the amount it has been giving the two clubs.
Kenya’s two most successful clubs announced the development on Monday, blaming it on reduced revenue in the betting industr due to the Covid-19 pandemic and government interference.
Gor and Leopards have been receiving Sh55 million and Sh 40 million annually respectively from the gaming firm since June 2020, when they signed the three-year-deal.
While the two clubs remained mum on what percentage the reduction of the sponsorship will be, Nation Sport has established that Gor will now be receiving Sh30 million annually.
“For a long time now, the betting industry has encountered a backdrop of external challenges. This includes the Covid-19 pandemic, a ban on mainstream advertising and fans not being allowed in the stadiums. These factors have negatively affected our principal sponsor Betsafe,” said a statement released by Leopards chairman Dan Shikanda.
“Despite the challenges mentioned, Betsafe has continued to strongly support the club and our activities, especially during these unique times. For these reasons, we’ve had frank, honest and intense discussions with our partners on how to proceed with our fledgling relationship.
Consequently, we have agreed on a minor adjustment to our sponsorship engagement over the three seasons,” Shikanda added.
Gor chairman Ambrose Rachier released the same statement, which added that “it has been agreed that the second-year sponsorship will start right away despite the current season still in progress.”
Even before this development, Gor was already grappling with biting financial constraints. The playing unit had downed their tools ahead of their 2-1 loss to Western Stima in the Football Kenya Federation Premier League match over outstanding salaries.