Betting company Sportpesa has signed a sponsorship deal with Kenya Premier League champions Gor Mahia. The deal estimated at Ksh50 million per season for five seasons could see the struggles of the KPL side over. The deal comes just days after Gor Mahia’s arch rivals AFC Leopards also announced a Ksh30 million shirt sponsorship deal with yet another sports betting company, Betway.
Football clubs in Kenya have struggled to attract corporate sponsorships in the recent past with critics arguing that hooliganism and mismanagement play a huge role in hindering corporate entities to pump money into the business of sports. Gor Mahia FC chairman Ambrose Rachier: “We have signed a five-year deal with SportPesa but we are not in a position to disclose the full details at this time,” he said.
K’Ogalo has in recent times had turbulent experiences especially after the Kenyatta family-owned Tuzo pulled out of the shirt sponsorship deal three years ago. Many clubs have had similar experiences and at times faced huge financial crises that affected their performances.
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Gor Mahia, however, managed to raise money through pay bill numbers as well as the famous ‘Gor Mahia bread’ that hit the market mid last year. Sources indicated that the club took home Ksh2 from every loaf of bread sold, money that aided their business and returned them to KPL glory for the third time in a row.
Betting company sportpesa has become a household entity enriching people with millions of money through betting and weekly jackpot predictions which stands at 24.9 million shillings today.
Sportpesa is also the official sponsors of the Kenya Premier League, a deal signed in August last year estimated at Ksh80 million per season with a 10 percent annual increment.
But why would a corporate entity pump that money into football club? It is business.
Research by bookies shows that sports sponsorships have evolved into serious business ventures from what was a ‘just a trick to raise awareness about a particular company and its services.’ In fact, the research estimates that sports sponsorship generates close to $40 billion annually worldwide. Online gambling sites and casinos have been drawn into the market of sponsorship due to high profitability, thus are able to enjoy hefty incomes in the end.
It is also important to note, from various sports and business surveys, that football fans award a great level of trust to their favourite team’s sponsors. Fans are also often tempted to wager a bet on their favorite teams whenever they show up to challenge an opponent. With the rules of the game as clear as crystal, the house always wins by a margin of 67.7 per cent.
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