Our politicians and policy wonks must accept that investment in sports federations , teams , personnel and facilities cannot be done as an end in itself . Rather investment in sports must be viewed as a means to lasting socio-economic development . bankrolled - albeit unsuccessfully - efforts to overturn the FFP rules through a legal process instituted at the European Commission by one of his associates .
GOVERNANCE
The Problematic Nexus Between Government , Politics And Sports In Our Part Of The World
By Walter Nyabundi
If you are a follower of the English Premier League , you may be aware that Chelsea FC , one of England ’ s most successful football clubs , is facing fresh allegations of financial impropriety by its former owner Roman Abramovich , the Russian oligarch and politician . This comes hardly four years after Chelsea were given a transfer ban for 150 rule breaches involving 69 of their academy players over a number of seasons . Football ’ s world governing body Fédération Internationale de Football Association ( FIFA ) handed the club a twowindow ban which ended in February 2020 .
The new allegations are contained in leaked documents related to an international investigation known as Cyprus Confidential . The files point to an elaborate and arguably borderline criminal operation on the part of Abramovich and his close associates in which they made questionable payments to different actors and attempted to exert undue influence on institutions with the singular aim of ensuring success for the club both on and off the pitch . It is acknowledged that the surreptitious activities may have breached rules put in place to ensure the game is not brought into disrepute , including those on “ financial fair play ” as stipulated by the Union of European Football Associations ( UEFA ).
The Financial Fair Play Regulations ( FFP ) are a set of regulations established in September 2009 by UEFA ’ s Financial Control Panel to prevent professional football clubs in European leagues spending more than they earn in the pursuit of success , and in doing so avoiding financial difficulties which might imperil their very existence . The regulations provide for sanctions to be taken against clubs who exceed spending , over a number of seasons , within a defined fiscal framework . The penalties meted out for contravention of these regulations include disqualification from European competitions , fines , withholding of prize money , and player transfer bans depending on the severity of the offence .
The Cyprus files reveal a series of payments worth tens of millions of pounds over a period of more than ten years , channeled through offshore facilities belonging to the oligarch . These transactions give the impression of having benefited Chelsea at the expense of their competitors . To add insult to injury , there is little evidence that they were declared in accounts submitted to football ’ s governing bodies , UEFA and FIFA , as well as the Football Association ( FA ). More damningly perhaps , the files also suggest that Abramovich secretly
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Our politicians and policy wonks must accept that investment in sports federations , teams , personnel and facilities cannot be done as an end in itself . Rather investment in sports must be viewed as a means to lasting socio-economic development . bankrolled - albeit unsuccessfully - efforts to overturn the FFP rules through a legal process instituted at the European Commission by one of his associates .
Nevertheless , credit must be given to Chelsea ’ s current owners who voluntarily reported that ‘’ incomplete financial information ’’ had been submitted during Roman Abramovich ’ s time at the helm of the club . This may have the effect of reducing the punishment handed down to Chelsea if the allegations are indeed proven . In any event , the club ’ s owners are likely to get nothing more than a slap on the wrist , probably in the form of points ’ deductions or a token fine . This is simply because handing one of England ’ s top clubs a severe punishment for these acts of omission and commission may cause irreparable damage not just to the English football ecosystem but to the UEFA edifice as well .
Now , let us compare this with our local context . Kenya ’ s two biggest football clubs by fan base are AFC Leopards and Gor Mahia F . C . To put it mildly , they are the perfect case studies for how not to run sports organizations in this region . Indeed , they are financially mismanaged and perennially insolvent . However , they both regularly receive what UEFA and the FA would consider illegal subsidies . These are essentially cash injections from business people , politicians , Cabinet Secretaries and even the President used to bail them out of trouble so that they can meet their local and international commitments . The cash received usually tends to offset transport costs and wages . Their competitors on the other hand are forced to balance their books or fold . It would appear that the Football Kenya Federation ( FKF ) and the Government of Kenya are in agreement that AFC and Gor are too big to fail .
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