africanmetro

Mubaiwa left to clean the other executive's mess

Three-time Premiership champions Dynamos are bleeding under the weight of debts totalling $500 000 with $300 000 owed to CBZ Bank. DeMbare risk attachment of their property as they have been failing to service the loan borrowed from the bank.
The club has been failing to service the debt due to the dwindling number of fans at their home matches as the club generate some of their funds from gate takings. DeMbare used to attract 30 000 fans at their home matches but now attract 12 000 paying fans.

Dynamos owe CBZ close
to $300 000, the money was apparently borrowed from the local bank back in 2008 by the then Patson Moyo led executive. The money is said to have been used to foot the team’s participation in the CAF Champions League.

The initial amount borrowed is said to hover around $240 000, a debt which the club only started paying in 2011 and by then it had accrued interests which saw the amount balooning to over $350 000.
The Harare giants are said to have made an arrangement with the bank to pay $10 000 monthly towards servicing the debt.

However, lately the club has not been able to pay the full monthly instalment to the bank owing the dwindling number of fans that pay to watch their home games.
This might mean two-pronged trouble for the team, the first being that the amount keeps accumulating due to interests while the other could be property attachments.

Mubaiwa left to clean the other executive's mess
Dynamos is also said to owe Barclays Bank around $40 000, again that is said to have been borrowed from the bank by the previous executive.

Apart from that the club is still settling bills at hotels and lodges for services that are said to have been rendered around the same period. Individuals and former players are also reported to be owed by the club.

Instead of paying $10 000 monthly to CBZ, Dynamos have instead resorted to spreading that $10 000 to service all their other debts on monthly basis meaning CBZ is no longer getting their full $10 000 instalment. All in all the team’s debt is stands between $450 000 and $500 000.

Dynamos executive chairman Kenny Mubaiwa confirmed that the club is servicing several debts though he could not be drawn into revealing the names and figures.
“Yes we are servicing a couple of debts, there are several of them actually. The debts were however left by the previous executive. The money was borrowed between 2008 and 2010 after dollarization. We owe banks, hotels and individuals. We are trying as much as we can to service those debts every month. However, it is no secret that there has been a decline in fans turnout at our games and this also cripples our capacity to service those debts as much as we would want. Unfortunately I can’t divulge the names and figures involved,” said Mubaiwa.

It never rains but pours for the club that has won the league championship for the past three years as individuals and companies are still approaching them claiming to be owed by the team.

“We are still having the same problems as people are still coming claiming to be owed by Dynamos. We have hotels and lodges, we have medical personel who are still coming claiming that the team owes them. We have had to go to court on several occasions as these people keep popping up. There are issue of players who come to us claiming that the team owes them money for example the William Kupera case, some of our property was attached because of that but we didn’t know about it. We have engaged the previous executive on several occasions but they will just confirm to you that the debts exist and you can’t do anything to change it.

“We have a sponsor (BancABC) that pays our players’ salaries and part of our signing on fees and we should have been stable had it not been for those debts. I think they should be just written off,” said Mubaiwa.

Dynamos is arguably the biggest crowd puller in the local Premiership but they have however not been spared by the decline in the number of fans that pay to watch the game.

Previously, the number of fans that the team used to attract averaged 30 000 but the figure has dropped by more than half to around 12 000 on average at their home games.
The 12 000 paying crowd normally contribute a gross gate takings that hover around $60 000.
From that $60 000, the club only pockets around $10 000 after the deductions by service providers and the stadium owners.

They pay 15 percent of the gross is payable to the owners of the stadium which could be the Ministry of Public Works if the stadium in question is the National Sports Stadium or the Harare City Council if they are using Rufaro for their home matches.

PSL deducts 10 percent while the Sports and Recreation Commission (SRC) claims six percent with ZIFA also getting the same percentage as the Sports and Recreation Commission.

A considerable chunk of the gate takings also goes to various service providers particularly the police who provide security at the matches.

Culled from Gemazo Blitz
Zim Soccer 9045710648845455713

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