Saturday, August 1, 2020

THE SHAME OF M-LEAGUE TEAMS RIDDLED WITH DEBT

FMT - COLUMN

Tony Mariadass

 August 1, 2020


M-League football teams, struggling to stay afloat in a sea of debt, must stop treating the youth and sports ministry and state governments as cash machines.

Some state teams are sinking deeper into a sludge of enormous debt, running up expenses that far outstrip incomes.

It is infuriating when state football associations continue to seek a bailout by taxpayers to cover salaries of players and coaches, transport and flight costs, and dues to the Inland Revenue Board and the Employees Provident Fund.

Almost every team in the M-League claims to have suffered losses during the Covid-19 lockdown because of poor gate collections. But teams will lose out on gate collections only when they play in empty stadiums when the league resumes at the end of August.

Only ill-prepared administrations with no reserve funds need to rely on gate collections to see them through the season.

Moreover, teams saved a bundle on operational expenses and travel costs during the lockdown period, with further savings in salary cuts among players, coaches, and administrative staff since March 18.

More money will be saved with the remaining season reduced to a one-round league.

Let’s look at Super League side Kedah and Premier League Kelantan: both failed to pay their players and coaches, in Kedah’s case for the last five months, it is believed.

Kedah FA president Muhammad Sanusi Md Nor, who is also the menteri besar, said last Sunday that the state government cannot arbitrarily channel funds to settle arrears of salaries and other dues.

Former menteri besar Mukhriz Mahathir was said to have pledged an allocation of RM1.5 million to the FA, but the funds have not been approved by the current state government.

“Do the fans want me to take the money meant for the poor, orphans and single mothers and channel it to the players?” he said. Sanusi said the state FA’s problems began under the previous management, and current debt stands at RM10.6 million.

But when he took over as FA president, Sanusi must have known that it was his responsibility to settle the association’s liabilities.


 Kedah MB Muhammad Sanusi Md Nor elected unopposed as new Kedah FA president on July 12 at their EGM with his newly elected Council members Kedah FA Facebook picture.

In Kelantan, FA officials met with sports minister Reezal Merican Naina Merican last week for advice on how to settle the RM2 million in wages owed to seven foreign players.

The Penang FA said last week they had resolved their salary crisis after paying its players and officials what was owed for April, May and June.

Just as with last season, the state government helped settle the debts.

Phasing out state FAs from professional football

The Football Association of Malaysia (FAM) has finally moved to end the role of state football associations, 26 years after football went professional.

It is now mandatory for states and clubs to privatise their teams for the AFC Cup and Champions league tournaments, and to obtain licences from the Asian Football Confederation (AFC), by Sept 30. Applications must be submitted by Aug 31.

Privatisation will ensure accountability and make those taking over the clubs responsible for the liabilities.

Teams who fail to meet the deadlines will be banned from next season’s M-League.

Previous attempts by the FAM to press for a professional setup were met with resistance by state associations and some of them are expected to oppose the move at council meetings.

There are already murmurs that some state FAs have suggested outsourcing their teams.

Professional football is much like a business and needs to be run like a corporate organisation with transparency, integrity and accountability.

Above all, it must be a sustainable organisation with funds sourced through sponsorship, profitable ventures and football industry businesses like merchandising, branding and advertising.

State FAs must decide if they want to be part of a professional football setup or remain as amateurs and intensify Malaysian football’s ills.

 

 BLOG VERSION

Saturday Aug 1

State FAs must be truly professional or ship out

No compromise from FAM for teams who fail to convert from FA to FC for 2021 season

 Tony Mariadass

THE Ministry of Sports and state government must not be treated as if they are welfare organisations for the professional State FA football teams in the M-League. 

The sooner State FAs realise this and manage their teams more professionally without depending on the Ministry of Sports and state governments to bail them out every time they run into debts mainly due to wages for players and coaches[H1] , their chances of them continuing playing in the M-league will be brighter.

The Football Association of Malaysia (FAM) has never been more serious about revamping its structure and put an end to football associations,

It is now mandatory that states and clubs must privatise their teams and be licensed by the Asian Football Confederation (AFC).

The deadline for privatisation is Sept 30, while applications for licences which will be issued by FAM’s Club Licensing Department and approved by AFC, must be submitted by Aug 31.

Currently two teams – Kedah from the Super League and Premier League's Kelantan – are facing difficulties in paying their players and coaches.


Happier times for Kedah team - 2019 FA Cup Champion Kedah FA - Kedah FA Facebook picture

President of Kedah FA Muhammad Sanusi Md Nor, who is also the new Kedah Menteri Besar replacing Mukhriz Mahathir, said last Sunday that the state government cannot arbitrarily channel funds or allocations to settle salaries of players representing the state team in the M-League.

 It is believed the Kedah FA (KFA) have not paid their players for the last five months besides payment to Inland Revenue Board (IRB), Employees Provident Fund (EPF) and team's transport and flight ticket providers.

Muhriz was said to have pledged a RM1.5 million allocations earlier, but it has not been released by the current state government, as it said that it has not been approved.

Kelantan, on the other hand, went to see Sports Minister Reezal Merican Naina Merican last week to seek his advice on how to settle the debts their team had inherited and must have also tried to get some funding.

Kelantan have arrears amounting to RM2 million owing to seven foreign players.

Also last week, Football Association of Penang (FAP) announced that they had resolved their salary crisis after settling what was owed to its players and officials for April, May and June this year.

 

The announcement was made by FAP president Dr Amar Pritpal Abdullah after Penang Chief Minister Chow Kon Yeow witnessed the team's training session at the Penang State Stadium near Batu Kawan after earlier officiating the opening of the stadium's running track.

Like last season, when the team’s debt woes were assisted by the state government, it was the same this season.

Kuala Lumpur FA also has a problem as its current president, Khalid Samad, is no longer the Federal Territory Minister. The FT Minister is now Tan Sri Annuar Musa,

Khalid during his tenture had allocated RM5 million for the season which the KLFA has been managing quite well so far.  What happens now that Khalid is no longer the Federal Territory Minister, is left to be seen. Is KLFA going to have an EGM like Kedah FA did and bring Annuar on board?

State FAs being aligned to political parties must stop.

Professional football is much like a business and needs to be run like a corporate organisation with transparency, integrity, accountability and above all to be a sustainable organisation with funds sourced through sponsorship, profitable ventures, football industry businesses like merchandising, branding and advertising.

Almost every team in the M-League is claiming to have suffered losses during the three-month Covid-19 Movement Control Order (MCO), citing loss of revenue from gate collections. 

How can gate collection be listed as a team's income when it is subjective and nothing is guaranteed.

Besides, did teams not save a bundle when not having to pay for electricity and water for their offices, no match organisational, travel and accommodation cost involved during MCO?

Also, with salary reductions for players, coaching and administration staff during the past three months, surely this was further saving.

Besides, every team must surely have a budget for the season with already secured funds and not depend on gate collection.

Yes, when the League resumes at the end of August and teams have to play matches in empty stadiums, only then will they will lose out in gate collection. But as mentioned earlier gate collection is not a guaranteed income for their respective budgets.

The number of matches to be played this season has also been reduced to a one-round league and this is surely another saving!

State FAs must decide if they want to be part of a professional football setup or just make up the numbers and remain as amateurs.

Twenty-six years after going professional, the time is ripe to put things right once and for all.

Many were upset when Sanusi said he was not going to take money from anywhere to solve Kedah FA's monetary woes. He claimed that the problem had begun under the previous management and that the current debt amount stood at RM10.6 million.

 "The mistakes were made under the previous management. Do the fans want me to take the money meant for the poor, orphans and single mothers and channel it to the players?" he asked.

But when taking over the reins from the previous management Sanusi must have known the liabilities the association had and is responsible to settle it.

However, credit to Sanusi for having confirmed that KFA would be holding a meeting on Monday to find a solution to the crisis, and to re-evaluate the implementation of several matters when under the previous management.

It is for this reason the FA of Malaysia, in line with FIFA and AFC, are making it mandatory for State FAs to privatise their teams to set up football clubs where there will be accountability and responsibility for anyone who comes on to helm the club, to take over the liability.

“Teams failing to meet the deadlines will be banned from next season’s M-League,” said FAM general secretary Stuart Michael Ramalingam.

The licensing and privatisation was part of the requirement for teams who qualify for the AFC Cup and Champions League.

Previous attempts by FAM to press for a professional setup were met with resistance by state associations and it will be no surprise there will be State FAs who oppose it at the council meetings. There is already murmurs from some State FAs suggesting to outsource their team.

“The regulations for licensing and privatising the teams are very clear and has to be adhered,” said added Stuart.

Ends.


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