Financial Woes at AFC Leopards: Sports Dispute Tribunal Orders Freezing of Accounts

The Sports Disputes Tribunal (SDT) has ordered the freezing of Kenya Premier League club AFC Leopards’ accounts due to non-payment of debts owed to former coaching staff members. This action comes after the club failed to honor a Ksh8 million settlement previously agreed upon with the dismissed staff, including former head coach Tom Juma, goalkeeper trainer Lawrence Webo, and physiotherapist Bonaventure Odire.

The decision to suspend access to AFC Leopards’ accounts adds to the club’s financial challenges, highlighting the difficulties many football clubs in Kenya face in maintaining sustainable operations. At the core of the issue lies an unsettled breach of contract that has evolved into a financial dispute between the club and its former employees, now requiring the intervention of the tribunal.

Background of the Dispute

The dispute began following the dismissal of Juma and his technical team, which occurred during a difficult period for AFC Leopards. The team had been experiencing a six-game winless streak, including a 2-0 defeat to arch-rivals Gor Mahia in October 2023. That poor run left AFC Leopards struggling at the bottom of the FKF Premier League standings, compelling the club to make changes to its technical bench in an effort to arrest the decline.

Although the club and the coaching staff initially pursued an out-of-court settlement, they had agreed on a compensation plan to clear the owed amount in installments. However, AFC Leopards has since failed to meet the terms of the repayment schedule. The debt, initially Ksh8 million, remains partially unpaid, with the club still owing Ksh5.8 million to the aggrieved parties. This breakdown in the agreed payment plan has escalated the matter, leading the coaching staff to return to the Sports Disputes Tribunal to seek enforcement of the settlement.

The Tribunal’s Ruling

The SDT, under the leadership of Chairman John Ohaga, ruled in favor of the former staff members, mandating that AFC Leopards’ accounts be frozen. The tribunal issued clear instructions to the club’s bankers to halt any withdrawals or transfers until further notice.

In its ruling, the tribunal emphasized that neither the club nor the bank (referred to as the Garnishee in legal terminology) could authorize the movement of funds from the accounts under AFC Leopards’ name. The freeze will remain in effect pending further directions from the tribunal, which will review the matter in upcoming sessions.

The tribunal’s decision reflects the seriousness of the club’s financial obligations, underscoring the necessity for contractual obligations to be fulfilled. Failure to meet these obligations not only damages the club’s reputation but also affects the livelihoods of former employees who depend on the settlement payments.

AFC Leopards’ Financial Struggles

AFC Leopards’ financial challenges are not unique, as many football clubs across Kenya operate under tight budgets, facing difficulties in balancing operations and meeting contractual commitments. Despite being one of Kenya’s oldest and most popular football clubs, AFC Leopards has struggled with financial instability over the years. The latest developments further highlight the fragility of football financing in the country, where clubs often rely heavily on gate collections, sponsorships, and occasional government support to sustain themselves.

The decision to freeze the club’s accounts comes at a critical time for AFC Leopards, as the club must now figure out how to navigate this financial impasse while still maintaining day-to-day operations. With the accounts inaccessible, routine expenses such as player salaries, transportation, and logistical support may be affected, creating an additional burden on the club’s management.

Impact on the Club and Potential Consequences

The financial freeze ordered by the SDT places AFC Leopards in a precarious situation, with potential repercussions on multiple fronts. On the sporting side, the inability to pay players and staff could disrupt the team’s performance and morale, further compounding the club’s challenges on the pitch. A demotivated playing squad risks deepening the crisis, particularly if players become disgruntled over unpaid wages.

From an administrative perspective, the club’s management now faces mounting pressure to resolve the dispute quickly to regain access to the frozen accounts. The club must also work on rebuilding trust with creditors, sponsors, and fans key stakeholders whose support is crucial for long-term success.

Additionally, the prolonged freezing of accounts may erode confidence among potential sponsors and partners, who could become reluctant to associate with a club embroiled in financial and legal disputes. This situation could undermine future sponsorship negotiations, further complicating the club’s ability to stabilize financially.

The Road Ahead: Resolving the Dispute

As the tribunal prepares for further hearings, AFC Leopards must strategize on how to resolve the outstanding debt without further delay. One option could be to engage in fresh negotiations with the former staff members to work out a revised payment plan. The club may also explore external financial assistance, such as loans or contributions from well-wishers and supporters, to clear the outstanding amounts and avoid further penalties.

If the dispute drags on, AFC Leopards risks facing additional sanctions, including the possibility of being barred from signing new players or participating in league competitions. Such outcomes would further complicate the club’s recovery efforts and potentially jeopardize its status in the Kenya Premier League.

Given the history and significance of AFC Leopards in Kenyan football, the club’s leadership will be under immense pressure to demonstrate accountability and transparency in handling the crisis. The fans, who remain a key part of the club’s identity, will also be watching closely to see how the situation unfolds.

Conclusion

The SDT’s decision to freeze AFC Leopards’ accounts underscores the importance of honoring contractual obligations and maintaining financial discipline in football management. While the ruling serves as a reminder to all clubs about the consequences of failing to meet their commitments, it also highlights the broader challenges facing football clubs in Kenya.

For AFC Leopards, the focus now shifts to resolving the dispute swiftly to prevent further damage to its reputation and operations. As the club navigates these turbulent times, it will need to demonstrate strong leadership, financial prudence, and a commitment to fulfilling its obligations to all stakeholders involved.

The upcoming tribunal hearings will provide more clarity on the way forward, but the onus remains on AFC Leopards to find a sustainable solution to its financial troubles.