By SHAMAOMA MUSONDA –
THE Football Association of Zambia (FAZ) last year posted a loss of K6.6 million, exactly a year after recording a profit of K7.3 million.
This is according to the association financial statement presented to the FAZ Council at the Annual General Meeting (AGM) held at Government Complex in Lusaka on Saturday.
The 2017 U-20 Africa Cup of Nations which Zambia hosted and won has been attributed as the reason for the increased expenditure and subsequent loss.
The financial statement said that FAZ last year had an income of almost K52.8 million, which was about K6 million better than the income from the previous year.
But the association’s expenditures for the year 2017 obliterated the 15.5 per cent rise in income from 2016 with an increased expenditure falling on the 2017 CAF U-20 tournament hosted in Lusaka and Ndola.
In 2016, FAZ had an income of K45.5 million but had a leaner expenditure of K38.8 million which put its financial books in black.
But the 2017 expenditure of K59.3 million, which was up by 52.8 per cent meant that increased income the association generated was overtaken, leading to a deficit in the income and expenditure columns of K6.6 million.
On the income section, FAZ had a 100 per cent rise from the advertising and television rights from K10 million to K20 million with the Games Revenue going up threefold from K4 million to K13 million.
The grants received dropped from K11.5 million to K8 million representing a drop of 30 per cent with the sponsorship income also dropping by K2 million from K11.1 million in 2011.
The most notable drop is in the other incomes noted as donations which slumped from K6.6 million to just K18, 900 representing a fall of 99.7 per cent in the section.
In the expenditures, the CAF broadcast rights took up almost K3 million as compared to none from the previous year with FAZ donations of K1.7 million last year rising by about 95 per cent from the 2016 expenditures of K89, 500.
The executive and standing committee costs rose up by 33 per cent to K1.5 million with the office expenses rising to K2.8 million from the K840,000 the previous year which is a rise of 71 per cent.
And the FAZ has set out a budget of K67.9 million and are hoping to post a profit of K100,000 with the Marketing Department set to raise 38 per cent of the said amount.