CAF On A Path to Financial Recovery As Commercial Revenue Exceed $125 Million for 2022-2023

 

The Confederation of African Football has claimed it is “firmly on a path to financial recovery” after today (Thursday) announcing commercial revenues of $125.2m (€112m) for 2022-23.

That figure marked a rise of $21.6m, or 17 per cent year-on-year, with strong performances from both the sponsorship and media rights revenue streams helping to improve CAF’s financial position.

At its general assembly in Abidjan, Ivory Coast, the organisation announced it had made a loss of $15.7m, albeit that is a considerable improvement on its audited accounts for 2020-21 that showed losses amounting to just under $45m.

CAF has struggled to cope with the loss of income following the abrupt cancellation of its $1bn global sponsorship and media rights deal with Lagardère in 2019.

The French company sought compensation, having described the termination of the 12-year contract as “unlawful, unreasonable and unjustified”. The deal was set to run until the end of 2028 before the cancellation.

CAF said today: “CAF had to take some difficult decisions on the longstanding dispute with some of our partners by settling matters out of court.”

Prize money for tournaments increased 26 per cent to $78.9m, in line with CAF president Patrice Motsepe’s promise to invest more in competitions, while development payments to member associations increased around $5m to $25m.

CAF has projected further revenue increases, on the back of the upcoming African Cup of Nations (AFCON) in Ivory Coast, which begins in January 2024 and is “expected to provide a considerable boost to CAF’s coffers,” the confederation noted.

In May, CAF initiated broadcast rights sales processes in sub-Saharan Africa and international markets for its flagship competitions between 2023 and 2025, headlined by AFCON.

It has also recently issued tenders for host broadcast and television services, merchandising and licensed products, ticketing and a sponsorship sales agency, with commercial activity having ramped up at the confederation since the appointment of Hassan El Kamah as commercial director at the start of the year.

It was also announced at the general assembly, attended by Fifa president Gianni Infantino, that the new eight-team African Football League will begin on October 20.

Infantino said: “It will have eight great teams, which will be followed in the future with a bigger version. We have to invest in African club football as well as national team football. It is our responsibility, duty and task, and with the work and contribution of all of us as a team, we will succeed.”

Little commercial information is known about the tournament, which will run concurrently with CAF’s Champions League for domestic league winners across the continent and is not a replacement.

There had initially been plans for a 24-team competition, with $100m in prize money, but that has now been significantly scaled down.

Earlier this week, CAF revealed it would no longer be called the Super League to avoid negative connotations with the failed European Super League project.