LMC/ NASD OTC initiative to list the elite clubs in Nigeria on the Stock Exchange Market is a laudable project I sincerely believe will change the face of football in this country.
The goal, I think, is to…
- 1. Standardize the ownership structure of the clubs. This will free most of the state government funding and establish a more enduring Private/ Public Partnership.
- 2. To re-capitalize the clubs for a more regular cash-flows in running their operations.
- 3. To set up for the clubs a more professionally run business operating system that will ensure breakeven and profitability in the near future.
In countries like England, Germany and Spain… the football industry is very illustrious and contributes significantly to the countries Gross Domestic Product (GDP).
Here in Nigeria, we have such a large market demand and consumption of football products as well as a large supply of talents… The challenge over the years has always been structure and administration of the factors of production.
It may not be enough to just enlist NPFL Clubs on the stock market, the LMC/ NASD OTC should find a way to attract investors for the clubs. As we all know, investors don’t just make investment decisions based on their passion…. They look at some vital business indices which points to short term and long term profitability…
- 1. They want to know the Directors and Management team behind the club
- 2. They have to accept the business plan and projections for the financial health of the club
- 3. They want to see the club’s annual report… A clear vision and mission statement of the club…
3 Things LMC/ NASD OTC Must Do to Attract Business Investors
- 1. To standardize the business structure and operating systems of the clubs. LMC/ NASD OTC should go ahead to pro-actively recommend sport business consultants to work with the clubs.
- 2. Organize several conferences and business round tables with tycoons in the country and abroad… wealthy business men like Dangote, Adenuga, Otedola, Saraki…should be engaged and make to understand the vision and mission of LMC for the football industry in Nigeria.
- 3. To drive football business policy statements, rules and regulations at the house of assembly for a possible enactment. This will boost the confidence of potential investors.