EXPLAINED: Understanding the Gor Mahia players’ standoff over prize money: contracts, rights, and responsibilities

This is why players are not necessarily entitled to price money from competitions after Gor Mahia players were involved in a stand off with the club management citing the fact that they deserved bonus shares for the price money they received from FKF.

Earlier this week, a standoff erupted between Gor Mahia players and the club's management over the distribution of Ksh 5 million prize money awarded by Football Kenya Federation (FKF) for winning the 2023/2024 league title.

 The situation unfolded when the players arrived at their training base at MPESA Foundation Academy in Thika on Monday but refused to alight from the bus, insisting they would not train until they received their share of the prize money.

The players’ perspective

The players' refusal to train sparked a response from the club’s chairman, Ambrose Rachier, who sternly warned those who were protesting as reported by Pulse Sports.

He threatened that any player who continued to down tools could leave the club, a stance that generated widespread debate among football fans and stakeholders.

The timing of this unrest is particularly concerning for Gor Mahia, as the club is set to travel to Enugu, Nigeria, for the annual Coal City Invitational Cup.

 They are scheduled to face Corinthians in their first match on Friday, August 2, 2024. This disruption is far from ideal for head coach Leo Neiva, who is working to prepare the team for the upcoming CAF Champions League campaign.

The club’s stance

In response to the ongoing boycott, the club issued a warning letter to the players, emphasizing their contractual obligations. 

The letter read, “Noted under the terms of your contract with the club, you are under the obligation to abide by the club rules and regulations, including taking and adhering to instructions from the team manager in matters relating to administrative issues.”

The letter further stressed the importance of maintaining discipline both on and off the pitch, including during training sessions. “In this respect, you are in violation of the club’s values, hence a fundamental breach of your contract with the club,” the letter continued.

The players were given 48 hours to provide a written explanation of why disciplinary action should not be taken against them for violating Clause 6 of their contracts and Article 14 of FIFA’s Regulations on the Status and Transfer of Players.

Expert opinions

A senior official from one of Kenya’s top clubs explained that prize money allocated by a country’s football association, such as FKF, typically goes directly into the club’s revenue.

 It is then up to the club to decide how to distribute these funds among stakeholders, including players and staff.

The official stated, “Club expenses are shouldered by the shareholders, including salaries, bonuses, operating expenses, and more.” 

Revenues from various sources—ticket sales, merchandise, prize money, sponsorship deals, and TV rights—are directed towards covering these expenses.

According to the official, players are entitled only to what is stipulated in their contracts, with prize money considered an additional token offered by the league. “If revenues must be shared, then expenses must equally be shared,” he added.

Contracts play a critical role in determining what players are entitled to receive. Typically, a player's contract includes a basic wage, and may also feature bonuses for agents, loyalty payments, or signing fees. 

Clauses specific to prize money or performance-based bonuses can be included, but these are not standard across all contracts and must be individually negotiated.

Chris Ochieng, a holder of a FIFA agents license, explained that prize money is often meant to be shared collectively among the team.

 “It is usually a collective bonus which is a certain amount of money the club would be willing to pay each player in the event they win the league, but the basis has to be the contract clause that one is entitled to a certain amount of money in case the club wins,” Ochieng told Pulse Sports.

Former Kenyan international Boniface Ambani criticized Gor Mahia players for their go-slow approach, suggesting that they were in the wrong.

 “Let me educate these players. I was once a player, and I understood my contract very well. I never bothered with the club’s prize money. Why?” Ambani posted on social media.

Ambani, who played for clubs like Oserian Fastac, Tusker FC, and AFC Leopards, elaborated that clubs have other financial obligations to meet and that not all prize money necessarily goes to the players.

 “A club hires you and pays you a monthly salary, which is rightfully in your contract. The club pays you win bonuses and draw bonuses throughout the season, and it’s in your contract,” he explained.

He added that clubs also cover travel, accommodation, and medical expenses for players throughout the season, all of which are part of the contractual agreement.

Ambani advised the players to negotiate for prize money clauses in their contracts if they desire a share of the winnings. 

“The only thing you need to do is ask the club to include in your contract what you will earn if the club wins the league or finishes in second or third place,” he said. 

“If that is not stipulated in your contract, forget about the club’s end-of-season earnings. That’s how they recover their expenses on the players and the team throughout the year. It’s as simple as that,” he concluded.

Conclusion

The standoff between Gor Mahia players and management highlights the importance of understanding contractual agreements and the distribution of prize money within football clubs. 

While the players’ demands may seem reasonable, the club is acting within its rights based on the terms outlined in their contracts. As the situation unfolds, it serves as a reminder of the critical role contracts play in professional sports.