PFJL clears air on fund shortfall
PROFESSIONAL JAMAICA Football Limited (PFJL) Chairman Christopher Williams has attempted to set the record straight after allegations that there will be no prize money for clubs for their participation in the Jamaica Premier League last season.
He also sought to clear the air on reports that JPL clubs owe $29 million, with interest, to PROVEN Investments, of which he is the chief executive officer.
Reports say the organisation is in debt by over $36 million, with the figure said to be closer to $50 million.
Those reports also suggested that no prize money would be available because the league operated at a loss. The clubs are also said to owe PROVEN $29 million, with daily interest, after revenue of $123 million came in to finance the season.
But Williams says that they will have a presentation ceremony with prize monies to be distributed to various winners this month.
However, the original money promised has been reduced because of the $8 million loss the league incurred last season.
“I suspect the confusion is that we presented a targeted prize money, and we had to adjust from that,” Williams told The Gleaner.
He said that over $50 million was committed, but there were overexpenditures and under-revenues, and the primary shortfall was the result of a major sponsor not honouring its contract.
Williams said to ensure that there was constant cash flow, PROVEN provided $29 million to assist with expenditures.
However, he says this money will not burden the clubs as PROVEN will be reimbursed
through sponsorship funds that are still outstanding.
“PROVEN provided a cash flow facility,” he said. “Sponsors will sign for ‘X million,’ but they pay it over a period, they do not pay it all up front.
“So we ended the league with $53 million owed by all the sponsors combined. PROVEN provided a cash flow bridge to ensure the league could continue.
“We executed, and when the sponsors’ money comes in, we will repay that, and we are on track to be repaid in November.
“So money that we are waiting for from the sponsors will be used to liquidate that debt.
“We have collected a significant portion of that during the month of October, and we expect to collect the balance in the first week of November.”
Williams admitted that there is an interest rate, but he was excluded from that process, to ensure that there was no conflict of interest.
“It was determined by independent directors,” he said. “I didn’t have any role in the facility. Because of the conflict of interest, other directors, including the independent directors, negotiated the term independent of me. So I was excluded to ensure no conflict of interest,” he said, while noting that they were offered regular market rate.
He said most of the concerns experienced by the league this term were down to teething problems but he gave the assurance that PFJL will get it right in the future.
“Myself and all the directors of the PFJL have been working around the clock to make the league a financial success,” he said.
“We may not have gotten the financials right on this first year, but it is our first year and we are learning.
“We will get the financials right. The sponsors are very supportive, so we are moving forward, and the dollars and cents will fall into place. No question.
“Our focus is to build the league so we can distribute more money to the clubs and they can become more professional.”