FAM budget up to k5bn

Football Association of Malawi (FAM) has put its budget at K5 billion from last year’s K3.7 billion, representing a 26 percent increase.

During a press conference at Mpira Village in Chiwembe, Blantyre to outline the association’s 2022 review and 2023 plans, FAM president Walter Nyamilandu said that their revenue budget has also been increased to K4.7 from K3 billion.

However, he said they will still have a deficit if the government fails to fulfil its obligation to provide K880 million for the national team engagements.

Nyamilandu said: “Our budget is pegged at K5 billion. Therefore, if we do not get the expected K880 million funding from the government, we will have a shortfall. We are hopeful everything will go according to plan.”

Minister of Youth and Sports Richard Chimwendo Banda yesterday said he would not speak on government’s commitment towards football support as time for that is not yet ripe.

“As you know, government’s financial year is not yet over and we are yet to start discussions for the next national budget. Therefore, it will be difficult to comment on this matter,” he said.

Last year, FAM spent K4.3 billion against an expenditure budget of K3.7 billion as at October 31, thanks to the additional income from the World Cup qualifiers and Africa Cup of Nation  television rights revenue.

On the budget, Nyamilandu said FAM is forecasting to generate and receive K2.4 billion from the Fifa grant, K880 million from government grant and K257 million from the Confederation of African Football.

At least K541 million is expected from business ventures and TV rights, K175 million from gate takings at both domestic and international games and K120 million from FDH Bank’s Flames sponsorship. Competition sponsorship funds and exchange gains are planned to bring in K92 million and K90 million, respectively.

The FAM president explained that Fifa’s latest 25 percent increase of annual funding from $1 million (about K1 billion) to $1.25 million (K1.25 billion) has necessitated the association’s change of budgeting approach, which will see most of the secured resources being channelled towards technical development of the game from the grassroots, the regional leagues and the elite leagues for both men and women.

“Previously, much of the funds were directed to the national team engagements. However, we have realised that it will be more beneficial to invest much of it in the development of the game from the grass roots,” he said.