The Ghana Football Association (GFA) has offered financial relief of $270,000 (about GH?3.24 million) to the 18 Premier League clubs affected by the recent decision by betPawa to withdraw from its role as the title sponsor of the Ghana Premier League.
To alleviate the immediate financial strain on the clubs, the GFA has pledged to distribute $15,000 from its own funds to each participating team at the end of the first round of the season. This move follows a meeting between the FA and the league’s officials last week to discuss the repercussions of betPawa's withdrawal and to strategize on mitigating the financial impact on the clubs.
Last week, the betting firm announced its decision to terminate its three-year contract, signed just a year ago, with a total investment of $6 million, committing an annual contribution of $2 million dedicated to promoting the elite league.
The GFA's Director of Communications, Henry Asante Twum, told Graphic Sports that the football governing body acknowledged the financial challenges posed by betPawa's decision to redirect its investments towards direct player welfare benefits. He revealed that the marketing unit of the FA was actively seeking a new headline sponsor for the Premier League to salvage the situation.
“The marketing department has started speaking with potential sponsors. It is obvious that the situation will increase the financial burden on the FA so we are working to get another sponsor for the league,” he said.
“Such things take time but as soon as any company comes on board we will announce it. We are putting in the same effort that got us betPawa, Malta Guinness, Access Bank and others just to ensure that we secure another sponsor," he said.
The FA's leadership, cognisant of the financial strains on both the clubs and the football governing body, engaged in dialogue with the affected clubs to address the challenges arising from the sponsorship withdrawal, as the clubs potentially face revenue shortfalls and disruptions to planned activities.
“It is evident that the monies they were due for the season will be a challenge, and we are very much aware that this will increase the burden on them. If they planned their activities with the betPawa money, it is obvious their revenue streams will be affected,” he said.
The situation adds a layer of complexity to the recent financial enhancements announced at the GFA's Ordinary Congress in Kumasi last July, including 60 per cent increased prize money and participation fees for the league clubs, aiming to boost the overall competitiveness and financial health of the teams.