Earlier this week, FUFA President Moses Magogo was on the spot light over claims that he is fully behind the production of Uganda Cup games and FUFA Women Competitions that have been shown live on national broadcaster, UBC TV this season.
There were further claims that Magogo directly gave the deal of producing games to a mysterious company instead of advertising it, a basic requirement necessary in the corporate world.
In a bid to address the matter, FUFA through its Communications Director – Ahmed Hussein released a statement on Saturday to address the issue. The statement is as follows:
With the Covid-19 situation raging in the country during the final bend of the 2019/2020 season, FUFA mooted a plan to have its Competitions on Television (TV) to give fans a chance to watch the matches since they were not allowed back in the stadia.
It was also one of the ways of taking the game to the public via TV.
The broadcast started with the promotional playoffs of the Regional Leagues and the Star Times FUFA Big League.
These were produced by FUFA and broadcast on FUFA TV (Facebook Live).
Later on, the FUFA Women Competitions and Uganda Cup were also televised via UBC, the National Broadcaster.
Commercial and Broadcast Rights:
In the past, FUFA was not able to sell the commercial rights of the FUFA Women Competitions and Regional Promotions but had sold the commercial rights of the Uganda Cup at 300m UGX (85,000 USD) to Stanbic Bank and 132m UGX (37,000 USD) to Kansai Plascon.
FUFA has not been able to sell the Broadcast (Media) rights of the FUFA Women Competitions, Regional Promotions and the Stanbic Uganda Cup.
In order to create more value for the commercial rights holders of the Uganda Cup thus Stanbic Bank and Plascon, FUFA undertook to pay the cost of production and also agree with a broadcaster to air the matches.
Production is the process of capturing the matches using Video Cameras and converting the captured video content into electric or electromagnetic or optic signal depending on the expected means of transmission.
The Signal is later transmitted normally via a telecom or satellite provider to the Broadcaster Network.
Production of a football match to be transmitted and aired live is a huge cost ranging from 30,000 USD for international feed standards to a local market price of about 5,000 USD for the current Ugandan Standards.
FUFA received a proposal by Satellite Plus Systems, a company that has been in trade with FUFA over the same business for the last about 10 years to produce 94 matches at a cost of about 1,100 USD per match.
FUFA was saving more than 75% from the local market rates for the same job.
FUFA accepted the offer and contracted Satellite Plus Systems to undertake the job.
In order to broadcast the signal produced by Satellite Plus Systems, FUFA agreed terms with Uganda Broadcasting Corporation (UBC) Television to broadcast the FUFA Women Competitions Matches (56 matches) and Uganda Cup (25 matches).
National Broadcaster UBC TV has offered free airtime for the Stanbic Uganda Cup and FUFA Women football competitions with the hope of making future revenue.
There was no exchange of money from either party but a share of the revenues when eventually broadcast sponsors are found.
So far, only Stanbic Bank has agreed to pay 80m UGX (22,800 USD) as a contribution to the cost of production which is about 362m UGX (103,000 USD).
There are currently over 10 prospective brands in negotiations with FUFA to be part of the Live Broadcast Sponsors of FUFA Competitions for next season.
The objective is to generate more revenues from the sale of Broadcast to cover the full costs of production, transmission, and TV airtime.
Whereas these are inelastic cost centres, the rest of the monies shall be for rights for the benefit of FUFA, Clubs, Referees, Coaches, and Players amongst others.
Whereas raising value and hence more revenues is the main objective, FUFA wishes to achieve other objectives such as;
Extend viewership of the FUFA Competitions to Homesteads, Offices, Bars, Schools and all other places where masses of people collect.
Build the brands of FUFA, Competitions, Clubs, Coaches, Players and Referees
Use the media content
Performance Analysis of the players and referees
Second opinion on matters missed by the match officials.
The FUFA Executive Committee, as mandated, enacted the FUFA Procurement and Disposal Manual and FUFA has also hired a fulltime procurement officer in the names of Isaac Natukunda.
In the process of procuring Satellite Plus Systems for the production of the 94 matches, all FUFA procurement processes were followed.
Also, to note, from the documents at the disposal of FUFA received as part of due diligence, Hon. Eng. Magogo Moses Hassim (the FUFA President) is not one of the owners of the Company neither was he involved in the process of its procurement.
Ahmed Hussein- Communications Director