Financial crunch gits Ghanaian clubs as broadcast deal collapses

Ghanaian football clubs are grappling with financial pressures intensified by the termination of the Ghana Football Association’s (GFA) broadcast sponsorship deal with StarTimes, the Chinese-owned pay-TV operator. 

Originally renegotiated in the 2020 season, this four-year agreement, valued at $5.25 million, provided critical financial support to the Ghana Premier League (GPL), FA Cup, Division One, and women’s football leagues.

However, with StarTimes unable to meet its financial obligations, the GFA was left with no choice but to cancel the contract, bringing Ghanaian football into financially precarious territory.

The initial deal with StarTimes provided approximately $1 million annually to the GFA, intended for the Ghana Premier League, FA Cup, Division One League, and women’s football. 

The live coverage brought critical visibility to Ghana’s domestic leagues, though premium matches were only accessible to StarTimes subscribers and via limited free-to-air broadcasts on Max TV.

StarTimes, however, reportedly owes the GFA around $1 million, and after negotiations for a reduced fee of $600,000 failed, the association had no choice but to pull the plug on the contract.

In a bid to keep the league visible to fans, the GFA swiftly struck a deal with two local TV operators, Globe TV and AFA Sports, to broadcast the 2024/25 Premier League season on free-to-air channels. 

This agreement sees Techiman-based Globe TV covering the northern zone, encompassing regions like Ashanti, Bono, and Northern Ghana, while AFA Sports, based in East Legon, broadcasts from the southern zones, including Greater Accra, Western, Central, and Volta. 

They provide live feeds to Metro TV, Net2 TV, and Original TV, while the GFA’s YouTube and Facebook channels further expand access through streaming.

This shift to local free-to-air broadcasts has significantly expanded viewership by making league matches accessible to more fans. However, the move has not been without criticism. 

Fans accustomed to the high production quality of StarTimes and earlier broadcaster SuperSport have voiced concerns over the coverage standards offered by Globe TV and AFA Sports, pointing to inconsistent visuals and subpar sound quality. 

The drop in production standards has drawn attention to the importance of adequate investment in broadcast technology to sustain fan engagement and uphold the league’s image.

With the collapse of StarTimes’ sponsorship, the GFA has been forced to divert internal resources to cover critical expenses, including league club funding and officiating fees—costs once comfortably met by the sponsorship inflows. 

Frederick Acheampong, a GFA Executive Council member, confirmed to Graphic Business that these commitments, previously covered through sponsorship revenues, are now a growing burden on the GFA’s limited finances. 

The association is navigating this financial crunch while attempting to support clubs that heavily depend on the revenue generated by sponsorships and broadcast partnerships.

Economic challenges

StarTimes, for its part, has cited economic instability as the root of its financial struggles. When the initial deal was negotiated, the Ghanaian cedi was valued at roughly GH¢6 to the dollar. 

But as the cedi depreciated sharply, StarTimes’ financial commitments tripled, making it difficult to meet their contractual obligations. 

The broadcaster, however, has assured the GFA that it remains committed to settling its debts in full as part of ongoing negotiations to renew the partnership under more feasible terms.

The timing of StarTimes’ withdrawal has exacerbated the financial strain already felt by Ghana’s clubs following the exit of the league’s headline sponsor, BetPawa. 

With BetPawa no longer in the picture, the GFA has been left without critical sponsorship funds, which had previously underpinned prize money for league champions and supported other clubs. 

For instance, last season’s Premier League winners, FC Smartex 1996, received GH¢500,000, a prize heavily subsidised by sponsorship funds. 

In total, GH¢1,150,000 was disbursed to league participants, comprising both StarTimes’ broadcasting sponsorship and BetPawa’s marketing and television rights contributions. 

With the evaporation of these two vital revenue streams, the GFA faces a monumental challenge in continuing to support the development of men’s, women’s, and juvenile football across the country.

In a bid to alleviate some of the burden, the GFA has granted clubs the right to retain all net gate proceeds from league matches this season. 

This decision is aimed at bolstering club finances by enhancing match-day revenue, which has historically been a vital, albeit modest, source of income for most teams. 

With many clubs relying on ticket sales to balance operational costs, this measure provides some relief, although it falls short of replacing the financial security once afforded by StarTimes and BetPawa’s backing.

The broader implications of this funding vacuum are significant. Beyond the immediate struggles of clubs to cover expenses, the quality of Ghanaian football’s development pathways—from grassroots to the professional level—could be hindered without robust financial support. 

These sponsorship setbacks underscore the urgent need for a more sustainable financing model, one that is resilient to currency fluctuations and economic pressures.

As the GFA explores new partnerships to bridge the financial gap, it faces an uphill battle. 

The search for sponsors in an economic environment where businesses are also experiencing financial headwinds is a challenging prospect. 

However, the association remains hopeful that new opportunities will emerge, especially with the Ghana Premier League’s loyal fan base and the country’s enduring passion for the sport as compelling attractions for potential investors.

In the short term, Ghanaian clubs must adapt to a tighter budget, refocusing on resourcefulness and maximising available funding. 

The current situation also presents an opportunity for innovative strategies to bolster revenue, such as more localised sponsorship deals, match-day events, and enhanced fan engagement to drive ticket sales and merchandise.