AFC Leopards have disclosed a challenging financial situation despite a significant increase in revenue in 2023. The club’s revenue rose to Ksh103,167,127 in 2023 from Ksh67,423,245 in 2022. However, this rise in income was accompanied by a substantial increase in costs.
According to the 2023 financial report shared by Secretary General Gilbert Andugu, the club’s total direct costs doubled to Ksh28,876,190 in 2023 from Ksh13,681,748 in 2022. Administrative expenses also nearly doubled, soaring from Ksh48,394,713 in 2022 to Ksh82,082,565 in 2023. Financial costs increased fivefold, reaching Ksh805,038 in 2023 compared to Ksh161,208 the previous year. Consequently, the total expenditure for 2023 was Ksh111,763,790, a significant jump from Ksh62,237,669 in 2022.
This resulted in a loss of Ksh8,596,663 for AFC Leopards in 2023, a stark contrast to the profit of Ksh5,185,576 in 2022. The negative financial figures are concerning, especially given the club’s efforts to boost revenue. Andugu is expected to face numerous questions from members during the club’s Annual General Meeting (AGM) scheduled for Sunday, June 30, at the Kasarani Auditorium Indoor Arena.
“I cannot comment on it now. Let members go through it, then we shall address all questions and concerns at the AGM,” Andugu told Pulse Sports when asked about the reasons behind the loss.
Although not fully disclosed, AFC Leopards’ primary revenue sources are believed to include their main sponsor, betting firm Betika, which signed a three-year deal worth Ksh65 million annually in July 2022, and increased gate collections from last year. The club might have also benefited from the Football Kenya Federation (FKF) broadcast deal with Azam TV, providing Premier League clubs a share of the revenue, though it’s unclear if player sales contributed financially.
The club’s high expenses likely stemmed from significant spending on players following the end of their transfer ban in August, leading to the acquisition of over ten players, including six from Nzoia Sugar, with associated transfer fees and salaries increasing the budget. Additionally, the club had to settle debts with former coach Patrick Aussems, who was owed Ksh21.5 million, and paid a Ksh500,000 fine to FKF due to an incident of hooliganism during their match against Kakamega Homeboyz in April 2023.
Furthermore, the club parted ways with Aussems’ replacement Tom Juma in October before hiring current coach Tomas Trucha, adding to their budget in terms of compensation and salaries.
