FAM faces Challenges to progress due to deficit – Zampirampira.com – Football, Netball, Basketball, Hockey,Tennis and sports in Malawi

FAM faces Challenges to progress due to deficit

FAM faces Challenges to progress due to deficit
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Football Association of Malawi (Fam) faces a challenge in its quest to move the game forward as it needs to recover a deficit of about K253 million from their 2015-2016 budget that was presented at the association’s Extraordinary Annual General Meeting (EGM) on Saturday at Chiwembe, Blantyre.

This was the first time for Fam to present its budget at its annual general meeting following Fifa’s recommendations to do so as one of the pre-conditions for getting funding from the world’s football governing body.

Making the budget presentation, Fam’s financial and administration manager, Christopher Mdolo, said the association’s total operational expenses budget for the period running from July 2015-June 2016 was K516.4 million.

Referees’ development and training has been budgeted at K7.3 million, the national team budget is at K309 million, subventions to affiliates would cost K1.8 million, coaching courses and development is budgeted at K15.9 million.

Grassroots football and junior teams’ budget is at K57.5 million, Fam would also sponsor competitions at K53 million, women’s football will get K45.6 million, the UNAIDS Protect the Goal Campaign will get K12.2 million while events and marketing initiatives have been budgeted at K7.2 million. Beach soccer will get K6 million in the financial year.

There are also administrative costs that amount to K252 million.

Fam currently has K317.4 million cash at the bank and according to the projected income and expenses, that leaves the association with a deficit of K253 million to balance the books.

Fam president, Walter Nyamilandu said there was need for robust commercialisation initiatives to get extra revenue and remove the deficit.

“Television rights and gate revenue can help us recover the K253 million. But that depends on the performance of the national team. The better the team does, the more revenue we will raise,” he said.

During the meeting, Fam’s financial report for the 2014- 2015 financial year were unqualified by auditors, AMG Global.

It was the sixth year running that Fam’s accounts had been declared clean.

Fam’s total assets rose to K992 million from 2014’s K516 million.

Fam’s total expenditures were at K907 million in the last financial year.

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