AFC Leopards Chairman Dan Mule says the team will be affected if SportPesa withdraws sponsorship due to heavy taxation. [Photo/facebook.com]
Kenya Premier League (KPL) giants AFC Leopards chairman Dan Mule has urged the government to put on hold implementation of the new tax regime on betting companies.
Mule said the taxation should be suspended in order to facilitate the convening of a stakeholders meeting as soon as possible to discuss the impending crisis in the sporting arena.
Mule’s sentiments follows a court ruling last week which threw out a case filed by betting companies against 35% taxation imposed on betting companies by the government. The new taxation procedure took effect on January 01, 2018.
AFC Leopards is being sponsored by giant betting company SportPesa. The company has already expressed a likelihood o withdrawing all sponsorship programs directed towards teams and sports organization due to the tax regime.
In a statement posted n AFC Leopards face book page, chairman Dan Mule said they will suffer a great deal if SportPesa withdraws sponsorship.
“In a nutshell, our expenses total Sh7.5 million each month, monies that are channeled towards payment of salaries for our players and other support staff, plus amenities such as rent, water, electricity, purchase of uniform, medical expenses, travel and other allowances. For the record, SportPesa have been the most supportive, by helping us meet approximately 75-percent of these,” he said.
“In fact I can put it right here on the record that without the backing of SportPesa, the club will not be able to pay salaries and play in continental assignments this year,” added the chairman.
AFC Leopards will represent Kenya in the 2018 CAF confederations Cup after winning the GOTV shield last year.