WINDHOEK – The dust refuses to settle in the ugly spat between Katutura glamaour football African Stars and its financial backer Sidney Martin.
Stars and Martin unceremoniously parted ways earlier this week with the multiple business mogul accusing the African Stars Club 500 of having failed to honour its financial commitments.
However, the club would have none of that and reacted angrily to suggestions that it was in arrears with contributions to the trust, as vehemently claimed by Martin.
In a bid to set the record straight, Stars reveals that the Sidney Martin Family Trust acquired a 50% shareholding in African Stars on September 24 2009 with the remaining 50% shares held by supporters of the club through the African Stars Club 500 (Pty) Ltd.
“As there was no money involved in the acquisition of the shares by the Martin Family Trust, it was agreed as per our shareholders agreement that the Trust would be responsible for 75% of the shortfall of the expenses, in the budget going forward with the remaining 25% being paid by Club 500,” says Patrick Kauta.
In view of that, the Martin Family Trust was given these shares in exchange for their commitment to meet 75% of all expenses of the club, which would otherwise not have been covered by the club’s internally generated revenue.
“When the Sidney Martin Family Trust acquired the 50% shareholding, Stars had already won the Namibia Premier League (NPL) in the 2008/2009 season, and were on the path of clinching the double in the 2009/2010 season, since the effective handover only took place at the end of November 2009.”
In addition, the team had by then won the NFA Cup in 2006/2007 under the stewardship of Zimbabwean mentor Gilbert Rwasoka, a testimony that the club was successful before Martin’s involvement and will continue to be successful after his involvement. “This club is bigger than any single individual,” charges Kauta.
During the handover in November 2009, the club’s finances were positive and were run on a sustainable basis while it was able to meet its financial obligations from its own resources.
“Suffice to add here that at the handover, the club had a positive bank balance which was handed over to the new management under the chairmanship of Martin, who did not only inherit a financially viable entity, but also received a team with the core of its squad relatively young and talented.
“That core of players largely continued to provide the backbone of the success enjoyed during the reign of Martin. Some of this solid foundation includes then head coach Bobby Samaria who had already tasted success with the team before Martin’s arrival when he won the elusive league title in the 2008/09 season.”
During Martin’s reign, operational deficits were incurred with increased demands on both Club 500 and the Martin Family Trust to fund these demands in accordance with the shareholders agreement.
Kauta is adamant the African Stars Club 500 has been making its contributions in accordance with the shareholders agreement, and has done so timeously, particularly with respect to the 2014/2015 season.
“It’s contribution to the budgeted shortfall in accordance with the shareholders agreement was paid proportionally to end March 2015.
“Sidney Martin must just give his real reasons for leaving the club and should not use the excuse of non-adherence to agreements. The Club 500 members have made contributions to the 2014/2015 season in accordance with the shareholders agreement and this should not be used as an excuse if he wants to leave the club for reasons unknown to us.”
Kauta bemoans Martin’s out of the blue announcement in the middle of the season in such a haphazard fashion, saying it has the potential to cause damage to the club.