Betting operator SportPesa’s sponsorship brinksmanship with Kenya’s government is getting an assist from the nation’s newly impoverished sports franchises.
As of January 1, SportPesa followed through on its promise to scrap its Kenyan sports sponsorships as a reaction to the government proceeding with its controversial 35% tax on all gambling products, which is on top of the 30% corporation tax gambling operators already pay.
Two formerly SportPesa-sponsored Kenyan Premier League football teams – Gor Mahia FC and AFC Leopards – announced this week that they would pull out of future continental tournaments. The two clubs had enjoyed combined annual revenue of Sh100m ($970k) via SportPesa shirt deals, but with these funds now gone, the clubs are questioning all unnecessary expenditure.
AFC Leopards chairman Dan Mule issued a statement underscoring the dire state of the team’s financial books, saying that “without the backing of SportPesa, the club will not be able to pay salaries.” SportPesa’s sponsorship reportedly paid up to 70% of the team’s monthly nut.