From the sunlit shores of Zanzibar to Tanganyika’s sprawling plains, every two football fans you bump into in Tanzania are split between Simba SC and Yanga SC, not otherwise. It’s a rivalry woven into the very fabric of the nation. The clubs, with a nearly a century history, were established over 80 years ago.
For the past two decades, whenever the referee whistled to mark the end of the Premier League, it was either of the two Kariakoo Streets clubs’ fans in the name of Msimbazi’s Simba and Jangwani’s Young Africans who erupted in joy as they claimed the league title. The lone exception transpired in 2014 when Azam FC made history by clinching the title for the first time. However, the dominance and fame of these iconic clubs bear little to their financial resilience.
Simba SC and Yanga FC are navigating an intricate transformation journey to bolster their footballing prowess and financial sustainability. For Simba SC, ownership is proposed to be structured, with 51 per cent allocated to members and 49 per cent to Tanzanian businessman Mohamed Dewji.
Similarly, Yanga FC proposes a 49 per cent ownership stake for investors, with the remaining 51 per cent retained by club members. However, the transformation journey, winding and relentless, with hopes at the end of the tunnel, beckons a long way to go.
In 2021, Mo Dewji, an investor pursuing a 49 per cent stake ownership of the Simba SC, publicly criticised the delays in the process, citing regulatory and procedural obstacles hindering progress, lamenting: “I am sorry to say that after holding meetings with the [Fair Competition Commission] FCC and agreeing to formalise things, we get letters to start over again. Perhaps [Members of Parliament] MPs are right that there are plots to stop us. This is very bad. Our big plans are delayed.”
The transformation process is still ongoing!
In the grand theatre of Tanzania football, despite delays in the transformation, Mo Dewji, CEO of MeTL Group, and Gharib Said Mohammed, CEO of GSM Group, deserve credit for their significant investments in Simba and Young African, respectively. Yet, as the light shines brightly, there are whispers of concern.
Clubs’ viability
From operational framework to revenue models, the clubs’ dependence on short-term strategies in their pursuits for glory raises eyebrows about their financial sustainability and long-term viability.
Contemporarily, Simba and Young African SC rely heavily on acquiring the biggest superstars in their prime as their primary player-acquisition strategy. Despite boasting about football academies, their impact is shadowy. Nevertheless, such a strategy is too expensive and unsustainable for many reasons.
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Identifying and securing elite talents requires scouting teams with vast experience and diverse specialities, capacities, and analysts supported by cutting-edge technological devices to evaluate prospective players’ performance, injuries, and potential.
Besides, it requires global outreach to uncover opportunities, significant time investment, and consistent monitoring to reach informed decisions. On the flip side, clubs must understand the market dynamics intensely to negotiate effectively yet ascertain value for money.
Unfortunately, our giant local clubs, Simba and Young African SCs, lack these critical components to compete globally. For instance, in 2023 and 2024, Yanga SC signed Augustine Okrah and Jean Baleke – players previously dropped by Simba SC for underperformance. Yanga has since released Okrah.
However, later on, FIFA ordered Yanga to pay him US$24,400 in a wage dispute, and Baleke is currently struggling, with the club considering loaning him to Dodoma Jiji FC. How can a club commit to signing a player whose career has been defined by successive loan spells – Nejmeh SC, Simba SC, Al Ittihad – without ever securing a permanent transfer?
Initially, the moves appeased the fanbase and taunted rivals; however, it backfired, stressing the perils of prioritising short-term strategy over a strategic, data-driven approach that could reinforce long-term success.
In December 2019, Yanga SC signed Yikpe Gislain Gnamien from Gor Mahia FC. However, in the process, a former Yanga SC striker, Boniface Ambani, issued a warning about the prospective signing, noting: “I watched him at Gor Mahia. I am a striker and know the calibre of strikers Yanga likes. I knew he wouldn’t fit the bill. I have watched him on several occasions; his runs are poor, his first touch poor, always running off target, and his finishing not clinical.”
The warnings were brushed aside.
Yikpe was successfully signed, but, as Ambani said, he failed to prove his worth and didn’t even last an entire season, as in August 2020, Yikpe was among the 14 players axed by Yanga. The tales echo through time, each brushstroke on the same enduring canvas with Juma Balinya and Carlos Fernandez (Carlinhos) in the equation.
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Flipping the page, Simba SC, much like its rival Yanga, navigates a fair share of twists and turns in player signings. In November 2014, the club signed Dan Sserunkuma, a Ugandan international, with a U$40,000 signing fee.
However, just five months later, in March 2015, Simba and Dan agreed to terminate the contract mutually, with performance issues being the primary concern. A similar pattern transpired in January 2024 when Simba SC signed Babacar Sarr, US Monastir FC, Senegal, on a two-year deal.
However, the player lasted only six months, with his contract terminated in July 2024 due to performance issues. The same year, the club signed Gambian striker Pa Omar Jobe. Despite high expectations, the player failed to prove his worth. Six months later, in July 2024, the player’s contract was terminated.
It is worth noting that the failed signings of 2024 are happening with Mels Daalder, an experienced Dutch scout hired by Simba in May 2023. These repeated setbacks underline the need to alter the clubs’ recruitment strategy to nurture talents through academies, expand scouting networks, and embrace data-driven decisions in player recruitment.
Acquiring top-tier players necessitates offering lucrative salaries, fringe benefits, bonuses, and long-term contracts. These culminate in huge wage bills that adversely impact clubs’ finances and operations.
Myopic view
However, in most cases, club management overlooks this due to the pressure and myopic view of quick wins. In the 2023/2024 season, Yanga earned Sh21.2 billion but spent Sh22.3 billion, resulting in a Sh1.1 billion loss. Player salaries consumed 34.91 per cent of earnings (Sh7.4b) and 33.18 per cent of expenditures.
Incentives added 12.26 per cent (Sh2.6b) and 11.66 per cent, respectively. Together, player costs took 47.17 per cent of earnings and 44.84 per cent of expenditures, straining operations.
Besides, Simba SC projected Sh25.9 billion in revenue for 2023/2024. Still, Sh6.8 billion, or 26.25 per cent, on salaries and Sh3.6 billion (13.89 per cent) on bonuses laid bare the financial weight of ambition, with player costs consuming 40.14 per cent of earnings. It is a gamble between glory and ruin. However, ruins turn the tide.
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With turbulence in the global economy and unpredictable pandemics like COVID-19, clubs should exercise prudent financial management. Gurus in sports management and other sports bodies, such as CIES Football Observatory and Deloitte Football Money League, underscore that for clubs above the breakeven point, player salaries shouldn’t at least not exceed 60 per cent of their total revenue.
However, 30 to 40 per cent is the most recommended threshold for clubs below the breakeven point to avoid deepening financial risks. Unfortunately, delving into Simba and Yanga SC revenues and expenditures figures, particularly bonuses and wag bills, beckons that ambition comes at a cost, and the wage bills tip the scale, leaving little room for sustainability.
Lessons from elsewhere
These conundrums mirror the drawbacks faced by global clubs like Manchester United, Chelsea, and Real Madrid. Simba, Yanga, and other local clubs should learn from these developments.
In Oct 2024, Man Utd ended an ambassadorial contract, a multi-million-pound deal, with Sir Alex Ferguson, the most successful manager in the club’s history. The move came after axing 250 jobs as part of a cost-cutting programme. In 2020, Real Madrid was forced to negotiate player salary cuts of about 10-20 per cent to stay afloat due to the coronavirus pandemic.
Since then, Los Blancos has redefined its transfer strategy, signing very young players with significant potential before their value reaches exorbitant levels. Players like Vinicius, Rodrygo, Militao, Camavinga, and Tchouameni were acquired under the new strategy.
Football leagues in developing countries like Tanzania have limited global exposure compared to Europe and Asia. Hence, signing proven players brings an inherent risk of generating a limited return on investment (ROI). Although valuable on the field, they don’t bring as much commercial value, such as increased shirt sales, lucrative media rights deals, substantial image rights, sponsorships and partnerships, and social media engagements.
Success in football transcends quantifiable metrics. It demands players who embody the club DNA, a trait often missing in players in their prime. In retrospect, the Simba SC squad of the early 2000s, under the captaincy of Boniface Pawasa, that ousted Zamalek, Egypt, the then CAF defending champion, had no international signings.
Instead, it had players who epitomised the club’s identity and core values. The team, as Pawasa several times recounted, possessed a fighting spirit and unwavering winning mentality. Pawasa took an elbow from Hossam Hassan, got six stitches without anaesthesia, and still played on. It was usual for an injured player to insist on continuing regardless of their condition.
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Sir Alex Ferguson, in his autobiography, explicitly exemplifies the power of nurturing homegrown talent, referring to his Class of 1992. Nurturing homegrown players offers an opportunity to groom them with football skills and a deep-rooted comprehension of the club’s DNA for long-term cohesion and success.
Wana tam-tam
Of course, I was very young, a primary student then; however, SAF and Pawasa’s words remind me of the Mtibwa Sugar squad (Wana tam-tam), the back-to-back champions of 1999 – 2000. It wasn’t just a squad but a symphony of local brilliance featuring 25 men with Tanzanian IDs.
Some notable figures in this squad included Steven Nemes (GK), Mecky Maxime (Defender), Zuberi Katwila (Midfielder), Yusuph Macho (Midfielder), and Monja Liseki (Defender). Mtibwa Sugar was founded in 1988, played in the fourth division in 1989, and was promoted to the first division in 1996.
In 1998, the league was restructured into the Tanzania Premier League, and a year later, the team won back-to-back Tanzanian Premier League Champions in 1999 and 2000. Its success culminated not from the wealth of giants but the pride of its soil. Two decades ago, Mtibwa vividly showed us that greatness isn’t bought; it’s nurtured.
Critics may point to glittering successes Manchester City and Chelsea garnered under Sheikh Mansour of Abu Dhabi and Roman Abramovich, a Russian oligarch, respectively. However, it should also be remembered that Manchester City is accused of 115 breaches of financial rules spanning nine seasons and is grappling with inconsistency in 2024/2025 despite a roster of proven stars.
Equally, after its short-term triumphs under Abramovich, Chelsea is battling to regain its former dominance. Hence, significant investments in academies nurturing homegrown talents with few additions of proven stars is feasible and a pragmatic strategy for long-term success.
Rethinking
Simba and Yanga SC must rethink their approach to player recruitment and team development to remain financially competitive yet uphold their prowess beyond short-term success. They should prioritise nurturing academy graduates and expanding scouting networks locally and globally to identify and recruit emerging talents early.
Adopting a data-driven approach, as exemplified by Brighton & Hove Albion, offers a blueprint for creating a cohesive and sustainable squad with clear tactical strategies and style of play. These strategic shifts are crucial not only for Simba and Yanga SCs but also for bolstering the national team, and it’s the only pragmatic model to transform from dominant local powerhouses into globally respected clubs.
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As I conclude this article, I fail to comprehend that these touted football powerhouses and century-old clubs in East Africa lack even a 30,000-seat stadium. Yet, if CAF or our Tanzania Football Federation (TFF) introduces Financial Fair Play (FFP) or Profit and Sustainability Rules (PSR), will our local clubs still prevail? There can be varied responses to that.
However, if our Tanzanian local clubs don’t change their tradition in club operations, mainly player scouting and recruitment, they risk treading the same weary path endlessly. And there lies a risk of reverting to stark financial constraints days of begging bowls and handouts. Kochecha S. Kochecha is an evaluation specialist interested in economics, business, policy, sports and entertainment analysis. He can be reached at hkochecha@gmail.com or on X as @VanKheir.These are the writer’s own opinions and do not necessarily reflect the viewpoints of The Chanzo. Do you want to publish in this space? Contact our editors at editor@thechanzo.com for further inquiries.
