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Club ownership stirs debate

It has emerged that while Football Association of Malawi (FAM) club licensing rules forbid multiple ownership or sponsorship of TNM Super League clubs, the application of the regulations has been hazy resulting in some clubs getting the leeway.

According to club licensing regulations on ownership and control of clubs criteria, no person or entity is allowed to own or be associated with more than one TNM Super League club to avoid conflict of interest.

Newly-promoted Ekhaya FC in action against Wanderers Reserves | Courtesy of Cee Jay Photography

The law states that when a club is applying for a licence to participate in the top flight league “the licence applicant must submit valid declaration confirming no physical or moral person involved in the ownership, administration, and/or sporting performance of the club, either directly or indirectly, holds securities or shareholders’ voting rights of any other club participating in same competition or has a majority of shareholders voting rights of any other club participating in the same competition”.

The regulations further state that the licence applicant “must submit a legal declaration confirming that no person in the club has the right to appoint or remove members of the administration, management or supervisory body of any other club participating in the same competition or is also involved in any capacity whatsoever in the management, administration and or sporting performances of any other club participating in the same competition”.

The regulation also prohibits any person to be a member in any capacity of two TNM Super League clubs.

However, application of the regulations has been blurred as some TNM Super League clubs such Malawi Defence Force (MDF) teams are legally owned by one entity.

Newly-promoted Chipiku Stores Central Region Football Association Premier League champions Blue Eagles coach Elia Kananji has raised the alarm, calling for authorities to ensure the regulations  are applied to ensure fair play.

In 2023, Eagles, a Malawi Police Service outfit, cried foul after they were relegated following a 7-0 result between MDF-owned sides Moyale Barracks and Red Lions that helped the former survive relegation.

Said Kananji: “We are returning to the TNM Super League with bitter-sweet memories. We still believe we could not have been relegated if the regulations were applied. Ours was a clear case of teams owned by the same entity helping each other to survive relegation. A team that had never scored seven goals in its history, managed to do so against their ‘brothers’. It’s high time FAM ensured this regulation is applied for the sake of fair play.”

Football analyst Charles Nyirenda said FAM needs to address the matter urgently to avoid compromising the integrity of the league.

He said: “FAM needs to take a stand on whether it is safe to have a single entity to own more than one club in the same league.

“The answer isn’t as simple as it may look. The reason for seeking FAM’s indulgence is to avoid a scenario of conflict of interest. We saw how indeed Red Lions seemed to ‘rescue’ Moyale Barracks from relegation in the 2023 season when they conceded the required seven goals in a match enabling a ‘brother’ to stay in the TNM Super League, since by then, the Reds had already been relegated.

“So, teams from the same family, existing side by side in the same league, do pose challenges indeed when it comes to authenticity of match results and possible collusion. Another area to look at is of costs. How affordable is it to run two clubs in the Super League? Even if it is affordable, is it necessary or needful? Does it contribute positively to football development? All these questions are relevant and can’t be ignored.”

Another football analyst Kevin Moyo said under no circumstances should teams under one entity be allowed to compete in the same competition.

He said: “In a normal football environment, it is not allowed for same owner to have two teams competing in same competition due to governance issues. In Europe, Red Bull had problems even sponsoring two teams in the Uefa Champions League. But in Africa we compromise due to limitation of sponsors on the continent. For example, in Mozambique the railway company Ferrovario has six teams in the elite league where there are 12 teams.

“In the Democratic Republic of Congo, Moise Katumbi and his son have TP Mazembe and Don Bosco in the topflight. But in Europe and even top African football countries like South Africa, Egypt, Morocco don’t have this. Malawi, Mozambique and Kenya should be the only countries currently still practicing this. Many have moved away even not allowing sponsors to own a club.”

FAM competitions director Gomezgani Zakazaka said the association’s club licencing regulations are clear.

He said: “Same entity or person is a club licensing matter where at elite level you can’t have two teams under one person or entity in the same league. That’s where issues of ownership under legal criteria come in. That’s why from 2023, we stopped reserve teams participating in cup competitions.”

The regulation might affect newly-crowned Ekhaya FC who have earned promotion to the TNM Super Leagfue after emerging Southern Region Football Association ThumbsUp Premier Division champions following a 2-0 victory over Nyambadwe FC at Kamuzu Stadium in Blantyre yesterday.

Ekhaya Farm Foods, owned by business mogul Thom Mpinganjira and his family sponsor the team.

Mpinganjira is also Mighty Mukuru Wanderers majority shareholder and president.

But Mpinganjira recently explained his association with the two teams, saying: “I am in Wanderers in my personal capacity because it is a club I have supported all the time.

“For Ekhaya FC, Ekhaya provides money, but there are three entities that bankroll the team. There is Ekhaya, Renaissance and myself as an individual. The team’s name is there to promote the Ekhaya brand.”

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