Taskforce recommends turning AFC Leopards into a corporate entity
For smooth transition from the current society structure to a corporate entity, the report recommends the formation of a Transition Committee
The taskforce formed to recommend how to transform AFC Leopards has recommended turning Kenya’s oldest football club from a society to a corporate entity .
Pending ratification by the club’s Annual General Meeting slated for end of this month, the report names a Mixed Ownership Model (MOM) as the preferred football structure moving forward.
The recommendations by the task force have been made after intense member engagement, civic education, case studies and consideration of the unique ecological, social and governance dimensions surrounding AFC Leopards and the Kenyan sporting space.
According to Secretary General Richard Ekhalie, the future is about embracing partnerships.
“The Mixed Ownership Model (50+1 Rule and Sustainable Club Ownership) is widely regarded as the best long-term option among various ownership models in football. Under this rule, club members and fans own over 50% of the club, ensuring that private investments are possible while preventing complete control by owners who may prioritise their personal interests. “
Additionally, the report recommends the incorporation of three entities with holding liability company at the apex, and two body corporates comprising a Sacco as a legal entity for members to channel their investment, and a vehicle for the Strategic Investor(s) to channel investment into the holding company.
Whereas the members Sacco will constitute 51% stake, strategic investor(s) will uptake 49% of the stake. The stake shall be reflected on the Board of Directors (BOD) of the holding company at the ratio of five for the members Sacco and four for the strategic investor(s).
For smooth transition from the current society structure to a corporate entity, the report recommends the formation of a Transition Committee dubbed the Corporate Committee. Its main agenda will be to supervise the establishment and incorporation of the two resultant legal entities thus the SACCO and Holding Company, as it awaits on the strategic investor(s).
The committee shall also be charged with setting up commercialization structures to reflect the new governance model as shall have been ratified by the AGM. The report recommends that the Transition Committee shall consist of seven members—four from the Corporate Taskforce Committee and three additional members to be nominated by the NEC, for a period of one year with an option of half year extension.
The taskforce spent six months on research and stakeholder engagement, The eight-member task force committee appointed on 28th August 2024 by the club’s National Executive Committee.
