Super League of Malawi (Sulom) is grappling with recovering debts dating back as far as 2010, a financial statement for 2024 financial year has revealed.
The statement, which was presented at Sulom annual general meeting in Lilongwe at the weekend, lists several individuals, organisations and clubs, who owe the league runners millions of kwacha.
The statement indicates that at the close of 2024 financial year Sulom had K460 308 798 trade receivables under current assets.
Of these, K238 873 824 00 is from TNM plc for the 2024 prize presentation and K104 380 726.00 as broadcasting rights share from Football Association of Malawi.
The other K117 054 248.00 is from media houses and other individuals.
The report also shows 2024 TNM Super League clubs are yet to pay them K56 834 096.00.
Relegated clubs going far back as 15 years ago such as Chilumba Barracks, Dwangwa United, Evirom, Fizd Wizards FC, Masters Security, Mponela United, Mzuni Warriors, Nchalo United, Ntopwa FC, Rumphi United, Sable Farming, TN Stars and Zomba United owe Sulom K42 330 918.00.
Various media houses, on the other hand, owe Sulom K63 365 684 in broadcasting rights revenue.
Though treated as trade receivables, the report acknowledges that the money may not be paid.
The statement reads in part: “The association’s receivables comprises outstanding fees and penalties from affiliates. Management is aware that debts due to the association may not be paid. Estimates based on historical experience are used in determining the level of debts that management believes may not be collected.
“When coming up with such estimates, we looked at factors such as the current state of the Malawi economy, significant financial difficulty of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation and delinquency in paying or post collection history and expected cash flows from debts that are overdue.”
Sulom treasurer Allie Mwachande in an interview said some of the debts may also not be recovered due to lack of supporting documents.
He said: “Some of the debts date back to over 10 years ago when we were not in office. It is becoming very hard to collect the debts. The challenge is that there are no supporting documents.
“If you go to someone to remind them that they owe you, you need to produce evidence in form of documentation which we don’t have. We will just have to write off such debt.
“As for the other debts, such as those from current TNM Super League clubs, it will be easy to collect the funds. The same with some media houses as well.”
However, Mwachande said despite the country’s economic hardships, Sulom recorded an increase in revenue collected in 2024.
He said: “We recorded a an increase of revenue from K604 million in 2023 to K1.2 billion in 2024, representing a 97 percent increment.”
The revenue is in from of gate collections, broadcasting rights, TNM sponsorship, FAM subvention, fundraising activities, affiliation fees and penalties.”
Audit firm Crowe J & W, a member of Crowe International, audited Sulom.
