Government Steps in on Ground Levies

Herald

By Petros Kausiyo

15 September 2010

Harare — Government has stepped in to try and find a lasting solution to differences between councils and domestic football over the city fathers’ crippling ground levies, which have left clubs struggling for viability in a tough operating environment.

Premiership clubs have over the years been crying foul over the city councils’ decision to levy 20 percent of gross revenue for top-flight matches.

The levies have become more crippling, especially this year in a season in which the Premiership has failed to find a sponsor and every club has been forced to rely heavily on net gate-takings.

Unfortunately for the clubs, there has been a huge decline in spectator attendance at matches since mid-July when the Premiership programme, which took a break during the Fifa World Cup in South Africa, resumed. It is against this background that the Government – through the Ministry of Education, Sport, Arts and Culture – has resolved to bring all the parties together with a view to getting a “win-win situation’ centred on a reduction of the levies.

Education Sport, Arts and Culture Minister David Coltart had earlier indicated that he wants the State to hold an indaba with Zifa and other key stakeholders to discuss ways of improved funding for sport. That Harare Mayor Muchadeyi Masunda has also indicated his willingness to see Premiership clubs lease such stadiums like Rufaro and Gwanzura has also opened the way for more dialogue by all the players.

On Monday Coltart’s deputy Lazarus Dokora began steps to address the differences between the local game and the City fathers when he convened a meeting between government, Zifa and the Harare City Council at his offices.

Zifa board member for competitions Benedict Moyo and Harare City Council official Richard Tswatswa, who is also the CAPS United goalkeepers’ coach, were among those who attended the meeting.

Although no concrete resolutions were immediately reached at Monday’s meeting, Moyo said there had been a commitment by all the parties to find ways that will benefit clubs and also ensure that councils as the owners of the grounds would not suffer huge prejudices.

Only four Premiership sides – leaders Motor Action, Hwange, Shabanie Mine and Black Mambas – do not use council stadiums for their home matches.

Moyo reckoned that the intervention by the Ministry of Education Sports and Culture was timely in that it had come at a time when Fifa were now insisting that Zifa should demand of proof of access to a stadium before registering a club.

“Fifa now want a registered club to have access to a stadium before being registered and there has to be proof that each club’s home matches would not be disrupted if that team does not have written guarantee that they can access the venue.

“In some instances some clubs have been told they cannot use a stadium because there would musical galas or other uses. “But we are happy that government and the councils have availed themselves for serious discussion on the issue of levies.

“Government wants a win-win situation between clubs, councils, corporates and the State. “As a result of the meeting Harare Council is now evaluating all the facilities they have for football so that a way forward is found around the contentious 20 percent levy clubs have been complaining about.

“It should also be the same for lower Division teams and the schools stadiums but as you know from the colonial times trhese facilities have been owned by councils.

“Harare will be a role model so that other councils can see that this is workable. We really need our football to develop and we need to have easy and cheaper access to facilities while at the same time also guaranteeing the councils and the sponsors full mileage for their decision to partner football,” Moyo said.

Although government must be commended for taking the initiative to address the locals clubs’ plight, Zifa and the Premiership will also be hoping that the ministry will also revisit the Sports and Recreation Commission levy.

The Sports Commission levies six percent on each match and Zifa and clubs believe the statuary requirement should be reviewed so that a reduction can be effected.

Both Zifa and the PSL currently owe the Sports Commission money in outstanding levies. In a reminder to Zifa last month, the Sports Commission also noted that the association still owed them US$39 649 which they believe is their six percent levy from the high profile international friendly between Zimbabwe and Brazil.

The Warriors against Brazil match, which attracted a near capacity crowd at the National Sports Stadium in June, grossed US$650 000 but because of the nature of the agreement signed between the organisers of the game and Swiss match agents Kentaro, the ticket revenue did not find its way onto the Zifa coffers.

Despite Zifa having indicated that they did not pocket the revenue, the Commission insist that the requirements of the law are that they should receive their six- percent levy.

Sports Commission director-general Charles Nhemachena also told Zifa that the association owed them US$56 382 in outstanding levies while the PSL owed US$41 029 in 2009 and another US$20 758 as at July 2 this year.

“As a follow-up letter on the remittance of levies dated 15 June 2010, please find attached a schedule of outstanding 6 percent ticket levies for which we expect payment without further delay. “These pertain to national team and PSL club level matches and our records indicate that the amounts outstanding are as follows: Zifa US$56 382 060, PSL 2009- US$41 029, PSL 2010- US$20 758 099, total US$118 170 059.

“We also note that the statutory returns on levies pertaining to lower division matches have not yet been submitted. Please ensure that you submit all outstanding returns not later than 15 July 2010 and ensure as well that the levies for those matches are remitted accordingly,” wrote Nhemachena. The letter was also copied to PSL chairman Twine Phiri, and the Sports Commission board chairman Joseph James.