Copperbelt Energy Corporation (CEC) has revealed a reduced cash spending on Power Dynamos by US$500,000 between 2023 and 2024. The company’s cash support dropped from US$2.2 million in 2023 to US$1.7 million in 2024, a difference that translates to over K14 million at today’s exchange rate.
Power is widely regarded as one of the best-run football clubs in the country. They benefit from the financial stability of their sponsor, CEC, retaining a 100 percent stake in the club through a special purpose vehicle known as Power Dynamos Sports Limited.
It has been established that last season, the club that failed to defend their title received less funding compared to the money they received in their title-winning season.
According to the CEC Integrated Annual Report for 2024, Bolanews can exclusively reveal that CEC’s spending towards the club experienced a significant drop in the year under review.
“The Group provides annual cash sponsorships to its wholly owned subsidiary, Power Dynamos Sports Limited. During the year [2024], the Group incurred US$ 1.7 million, (2023: US$2.2 million) in cash sponsorships,” the report revealed in part.
Is CEC withdrawing its sponsorship?
The reduction in spending does not, in any way, suggest that the sponsor is withdrawing its support for the club. Copperbelt Energy Corporation (CEC) has maintained its 100 percent ownership stake in Power, giving the club rights to use CEC’s tangible assets on a non-reciprocal basis.
“The subsidiary, Power Dynamos Sports Limited, has the right to use the stadium, bus and other assets legally owned by the Group for no consideration.
“The subsidiary does not perform any services or provide any goods in return for this right. Therefore, the transaction is non-reciprocal in nature. The subsidiary measures all capital contributions from the shareholder at cost.
“Accordingly, the right to use assets is measured at the amount of consideration paid to the Group. On this basis, the right to use the assets is recognised at nil value in the subsidiary,” the report read.
Power is enjoying a decent run of form that sees the top of the log with 51 points, three better than second-placed Zesco United. Oswald Mutapa’s men have not lost a match since January 11 when they went down 3 – 2 to Red Arrows.
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