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CNA
11-06-2025
- Business
- CNA
Chasing glory, floored by debt: Are Malaysia football clubs scoring own goals with poor management?
KUALA LUMPUR: A sign that not all was well at Perak Football Club surfaced in the middle of last year, when players were told their salaries would be halved. For centre back Shivan Pillay, this meant having to be more frugal, and he started cooking and eating more at home. 'Many of the players were doing this as there were monthly commitments such as paying for rental and our car loans,' said the 25-year-old, a former Malaysia national Under-23 player. The staff were also getting their salaries late but, in a team meeting last September, Perak FC's management assured all outstanding payments would be made. The situation deteriorated rapidly just before Hari Raya Puasa in end-March, however, when players stopped getting paid altogether. In April, news that the club could dissolve emerged after goalkeeper Haziq Nadzli shared on social media that the management had offered players just 20 per cent of 6.5 months' salary arrears. On May 25, Perak FC announced that it would immediately cease all operations as it had exhausted its resources. The management said it had invested over RM40 million (US$9.45 million) over three years and 2.5 seasons. It had begun by clearing RM8 million in debt left by the previous management and had allocated RM10 million annually to running the club – the operations and wages of its teams, coaches and administrative staff. Remaining funds would be used to send its foreign players home and pay whatever it could to other staff and players, it said. "If they had told us (they were facing difficulties), we could have tried to look for another team and make a move during the transfer window in December last year," said Shivan. Perak FC is not the only club that will be missing from the Malaysia Super League (MSL) when the new season begins in August. Kedah Darul Aman (KDA) FC, too, failed to get a national licence to compete in the coming season, which will end in May 2026, due to financial compliance issues. Their woes have cast the spotlight on issues such as overspending, unsustainable revenue models and lax governance that plague Malaysian club football. Although football is the national sport of Malaysia, its local iteration has suffered from poor management, a lack of corporate sponsorship, a widening gap between teams in the league and a relative lack of support from local fans, some of whom pour their passion into English Premier League clubs like Liverpool and Manchester United, observers said. Proper management and a rethink of funding models – such as whether state funding is needed – as well as certain policies, such as the number of foreign players allowed, are needed to lift standards and professionalism in the league, they said. SALARIES UNPAID Perak and Kedah are not the only clubs facing financial and other woes. Three teams – Kuala Lumpur FC, Kelantan Darul Naim FC and PDRM FC – have been issued conditional licences for the coming season and were required to submit additional information to fulfil the financial criteria set by the Malaysian Football League (MFL). Failure to comply may result in their licences being revoked, said the MFL. Clubs need to comply with criteria in six areas, namely sporting, infrastructure, personnel and administration, legal, financial and business. MFL acting chief executive Shazli Shaik told CNA it has yet to make a final decision on the three clubs. Clubs facing cash flow problems feature regularly in the news. In January, almost half of KDA FC's players reportedly boycotted training after they did not receive their salaries. Players from Kuala Lumpur City FC – which won the Malaysia Cup in 2021 by defeating Johor Darul Ta'zim (JDT) – have complained about unpaid salaries over the past year. At Sri Pahang – which is coached by Singapore football legend Fandi Ahmad – payment of salaries has also been an issue in the past season, with players only receiving their salaries in March this year, just before the Malaysia Cup final where they lost 1-2 to JDT. While Sri Pahang has received a licence for the coming season, Malaysian media reports suggest it may pull out of the league due to the inability to get sponsors. Last April, team members of Perlis United, who were playing in the Liga M3 – now known as the A1 semi-pro league – were reportedly forced to take on jobs including tapping rubber because their salaries were not paid. After the top-tier Super League, Malaysia's only professional league, there is the A1 semi-pro league followed by the A2 amateur league and A3 community league. In the coming season, the MSL will feature 14 teams, with two teams – Melaka and Immigration – promoted from the A1 league, and the participation of Brunei's DPMM FC. DON'T SPEND BEYOND MEANS, OFFICIALS SAY The issue boils down to overspending, said Ng Wei Xian, Perak FC's former goalkeeping coach who joined around the time public-listed telco XOX acquired the club in August 2022 from Perak Football Association. At the time, he recalled, the new management pledged it would not 'make the same mistakes as before' and would do things differently by building a young team with a well-managed budget, and 'slowly contend for the top places in Malaysian football'. Following poor results, however, the club sacked its head coach Lim Teong Kim mid-season in May 2023, which led to Lim filing a complaint of wrongful dismissal with the Perak Department of Industrial Relations Malaysia. After that, Ng said, the management turned to foreign imports to boost the squad, hoping for the players to 'outperform expectations on the pitch, bringing in more fans and revenue to get (the management) the return on their investment'. The club's acquisitions in the 2023/2024 season included Serbia's Luka Milunovic and the Philippines' Jesper Nyholm, who joined in mid-2023 and left in December 2024. What resulted were situations where some players' salaries were not paid, according to Ng. 'I could see it in my younger players that they were struggling to get by,' Ng said. 'They would ask me to buy them food or treat everyone to a meal, saying how they would have only eaten instant noodles or plain white rice and a fried egg with soy sauce for the entire week.' A Malaysian who is a Singapore permanent resident, Ng, 31, used to coach at Singapore Premier League side Tampines Rovers, where he said he was always paid on time. He is now the first-team goalkeeping coach and head of analysis at A1 league side Bunga Raya Damansara FC. Spending beyond one's means is not a problem restricted to Perak FC, noted Selangor FC technical committee chairman Shahril Mokhtar. 'At the end of the day, you should spend according to your budget and cash flow,' he said. 'What's happening now is that clubs are simply spending without knowing if they have the money.' While some clubs like Selangor and JDT have bigger budgets than others in the MSL, there are those with smaller budgets, such as Penang and Kuching, that are doing well, observed Shahril. Clubs have to decide where the balance lies in excelling at the highest stage possible and developing a healthy pipeline of homegrown talent, said veteran sports journalist and commentator Rizal Hashim. Most Malaysian teams have foreigners in key positions – the main goalscorer, defensive midfielder, playmaker and goalkeeper – and this is perhaps inevitable for clubs striving for success in continental club football competitions like the Asian Football Confederation (AFC) Champions League, said Rizal. The MFL has increased the foreign-player cap from 12 to 15 for the upcoming season, and 'the likes of JDT and Selangor would be happy because we are competing at a higher level in the AFC Champions League. But for other teams, they shouldn't hire 15 foreigners', said Shahril. 'Even hiring 15 foreigners, for us, will be very costly and I don't think we are going to do that,' he added. Malaysia's sports minister Hannah Yeoh spoke up about the issue last month, calling for the country's football clubs to be managed by parties with genuine financial and managerial skills to boost investments in the domestic league and safeguard player welfare. "Football has a large audience, which is why I believe that to convince sponsors, all they want to see is how a club is run, how they pay salaries or look after the welfare of players," Yeoh was quoted as saying by state news agency Bernama. "I urge that those who are not capable should not touch it; let others take over. Sometimes, there are those who cannot manage but still want to hold on to power, preventing others from stepping in,' she said. Tunku Ismail Sultan Ibrahim, the regent of Johor who owns JDT, has also spoken up about spending beyond one's means. If clubs have RM10, they should spend RM7, he posted on social media last November. 'Improve the infrastructure a little bit. Have realistic targets. That doesn't happen. Instead, everyone wants to be a populist and promises to win a trophy,' he wrote. 'You have RM10 but spend RM15. Then when you fail to pay salaries, everyone from the management to the fans blames the governing body (Football Association of Malaysia), MFL and the team that becomes champion, JDT. Everyone else is at fault except themselves. Malaysian football didn't fail, you failed!" said the outspoken regent. MFL's Shazli said he hopes the Financial Fair Play regulations introduced last season will help clubs better manage their finances and prevent them from spending more than they earn. He said that under the regulations, only 80 per cent of the club's income may be used for salaries and statutory payments for players, officials and staff as well as for the club's youth and development teams. The other 20 per cent can be used for the club's operations. 'It is very important that this is implemented because we don't want the same issues that crop up every year to happen again. We have the regulations, but the clubs need to follow them,' he said, adding that MFL is organising workshops for the clubs on the matter. He, too, said clubs have to do their part to pull in sponsors and fans. 'When you have crowds, you can pull in the sponsors and generate more income,' he said. A CHICKEN-AND-EGG SITUATION But attracting and retaining sponsors is a challenge, football insiders said. In February 2023, Bernama reported that international conglomerate Bin Zayed International had come on board as KDA FC's main international sponsor for the season. The club's majority owner Mohd Daud Bakar also listed several other sponsors the club had attracted. But barely a year later in March 2024, the club was reportedly in financial trouble, with the state government calling for parties to help or sponsor the club, which had privatised in 2023, according to news outlet Malay Mail. In 2021, clubs were required to privatise – turning from football associations (FAs) to football clubs – in order to play in the Super League and Premier League, the country's top professional tiers. The Premier League was discontinued in 2023. The AFC had made it mandatory for qualifying clubs that want to compete in their competitions such as the AFC Champions League to obtain a licence through their respective member associations. This meant that the teams had to be separate legal entities from their national or state FAs to ensure proper governance, financial transparency, and professional management. In Malaysia, state governments had previously served as the main financiers for football teams, with annual budgets directly dependent on state allocations. Shahril of Selangor FC said it is not easy to get sponsors for clubs in Malaysia as the return on investment is relatively low, unlike for major clubs in Europe that have a global fan base. Much of the revenue of the world's major clubs are from broadcasting rights, not from match ticket sales, he said. Football observers noted the chicken-and-egg situation when it comes to drawing sponsors and developing other revenue streams: A product has to be good for sponsors to be willing to come on board, but it is uncertain if the MSL has reached the standard. 'If you have a good product, the supporters and sponsors will come in. But right now, there is nothing in it for them,' said Zulakbal Abd Karim, a sports science and coaching lecturer at Universiti Pendidikan Sultan Idris in Malaysia. Malaysia's clubs lack support from local fans, agreed sports analyst Pekan Ramli. Only 56,000 fans turned up for this year's Malaysia Cup final match between JDT and Sri Pahang at the 90,000-capacity Bukit Jalil Stadium, he pointed out. The lack of competition in the MFL does not help, Pekan said. JDT has won the league title for the past 11 years, and the recent increase of the cap on foreign players could further widen the gap between clubs. 'If some teams can have 15 imports but others can only afford two or three, is there fair play in that?' he questioned. 'We cannot just prioritise certain teams and leave others behind … we have to understand that the resources of each club are different.' IS STATE FUNDING NEEDED? Some analysts also believe federal and state government funding is still needed to help football clubs survive. Citing the legacy of government backing in Malaysia's football ecosystem, football critic Rizal Hashim suggested ownership of clubs could be split between state governments and the private sector so that each party would have a stake in the clubs' performance and success. 'Our ecosystem was never club-based but state-based. The state government must have a stake in the FC business model entity via the state FAs. Teams like Perak, Kedah and Perlis suffered and have withdrawn because state governments don't see the need to bail them out,' he said. In Perak FC's case, Perak Chief Minister Saarani Mohamad said on Apr 27 that the state government was unable to resolve the club's financial crisis. The cost of financing professional football clubs in Malaysia had become "too expensive" for state governments to bear, Saarani said. Perak's displaced players and staff are now left to chart their next steps. Shivan is keeping his footballing dream alive and weighing offers from other clubs. Football is a livelihood for many players, and he hopes the fraternity will come together to tackle the issues in Malaysian football. Shivan, who is taking up a part-time degree course in business administration, also has this piece of advice for youths hoping to carve out a career in the sport: Pursue your footballing ambitions, but not at the expense of your studies.
The Star
01-06-2025
- Business
- The Star
Ipoh fans celebrate Liverpool win with open-top parade
Supporters at the live screening of the club's trophy lifting ceremony at a restaurant in Ipoh. ABOUT 100 supporters of Liverpool Football Club attended a private gathering in Ipoh, Perak, to celebrate the Merseysiders' 20th English Premier League title win. The event was organised by the club supporters' group Ipoh Kop End at the Five Thousand Years Restaurant during the live screening of the trophy lifting ceremony. Event organiser Peter Ho said those who attended watched the match between Liverpool and Crystal Palace before the title celebration. 'We also had a correct score competition and lucky draw. 'Some members won jerseys signed by former Liverpool player Luis Garcia, official merchandise and other prizes. 'We also sang songs on stage during the trophy lifting ceremony,' he said when contacted. Ho said as a supporter of Liverpool for over 33 years, the title triumph meant that the club was now the apex English football club. 'I believe it's just the beginning and there'll be more to come. 'We are planning to hold another gathering for the first match of next season at the restaurant in August, so I hope that more can join in,' he added. The open-top bus with supporters driving through Ipoh to celebrate Liverpool's 20th English Premier League title win. Veteran coach and lifelong supporter of Liverpool Datuk M. Karathu, who was the event's guest of honour, said he was happy to see so many fans gathered there. 'I am thankful to the organiser for bringing together so many supporters for this celebration,' he said. Karathu, who has also coached the Perak football team, however could not hide his disappointment about what was happening to Perak FC. 'It pains me to think that fans in the state will not have a team to support in the Malaysian Super League next season,' he added. Perak FC had said that it would officially stop all its operations due to financial issues. XOX Pro Sport Sdn Bhd, the club's owners, announced that it would withdraw from the league and were hoping to sell the club. Earlier, about 40 members of the Liverpool supporters' group also took part in an open-top bus parade through the city centre. The bus set off from Ipoh Padang and made its way to Jalan Sultan Idris Shah, Ipoh Railway Station, Ipoh Old Town and Birch Memorial Clock Tower, before returning to Ipoh Padang. Parade co-organiser Edwin Seibel Nathan said participants had a wonderful time on board. 'It rained earlier, but it stopped as we boarded the bus, so the cool weather made it even more enjoyable,' he said. 'There were people waving as we passed by and cars honking as well. 'Some who couldn't join in the parade came to the field to send us off and welcome us back.' He said many participants took pictures with a replica trophy that he brought along. 'Many said they want to do this again if Liverpool wins another trophy,' he added.
New Straits Times
26-05-2025
- Business
- New Straits Times
Perak kicks off football revival from the ground up
BATU GAJAH: Perak will prioritise grassroots football development in a bid to revive the sport's former glory in the state. Menteri Besar Datuk Seri Saarani Mohamad said this approach was being adopted as attempts to turn football into a commercial venture had not delivered the desired outcomes, unlike in some other countries. He said that although football team privatisation had been pursued in the hope that private sector investment would drive profit-oriented growth, it had proven unsustainable. "In Malaysia, including in Perak, we have been unable to replicate the model seen in countries like the United Kingdom, where football functions not only as a sport but as a major business," he said. "We had hoped that private companies, such as XOX, would fund Perak FC, but in the end, they could not sustain the commitment. This isn't unique to Perak — most states face similar challenges, with the exception of Johor Darul Ta'zim (JDT)," he added. Saarani was speaking at a press conference after attending the Meet the Customer Day event at Dewan Bandaran Kinta here today. It was recently reported that Perak FC had suspended all operations with immediate effect due to financial difficulties. In a statement, the club's management confirmed that foreign players had been released and remaining funds used to pay staff and local players. Saarani said the state would now return to the traditional football development model beginning at school level. Discussions have already been held with Perak Football Association (PAFA) president Datuk Mohd Azhar Jamaluddin. "In the past, we identified talent through school competitions via the Perak School Sports Council (MSSPk), starting from district level up to the state level. That was how we unearthed promising players," he said. "If we want Perak football to thrive again, we need to rebuild from that foundation." He also attributed the lack of new talent to the limited opportunities available to local players in the Super League, which increasingly favours foreign players. "At the moment, only JDT are managing to stay competitive. States such as Kedah, Perlis, Pahang, and even Perak are struggling. "With the Super League allowing foreign players, local talent is being sidelined. Yet the Football Association of Malaysia (FAM) still relies on Malaysian players for the national team. Without grassroots development, where will those players come from?" he said. Saarani affirmed that the state would continue supporting football development through participation in tournaments such as the Malaysia Games (Sukma) and other state-level championships.
The Star
26-05-2025
- Business
- The Star
Football business not feasible in Malaysia, says Perak MB
BATU GAJAH: Football as a business is not feasible in Malaysia, says Datuk Seri Saarani Mohamad. The Perak Mentri Besar said many teams are struggling financially and more will likely end up like Perak FC. "Only Johor Darul Ta'zim (JDT) can do it. Teams like Perak, Kedah, Perlis, Pahang and Terengganu are all struggling," he said. He said this during a press conference after attending the Meet the Customer Day at Dewan Bandaran Kinta on Monday (May 26). "We cannot copy what is being done in the United Kingdom because it is not just a sport there but a business," he said. "In Malaysia, we just cannot do it. Like Perak, the team was privatised with hopes that XOX Bhd could develop the sport based on business but it's just not doable," added Saarani. Saarani was asked to comment on Perak FC's recent decision to officially stop all operations due to financial strains.
Malay Mail
26-05-2025
- Business
- Malay Mail
‘No more funds left': Perak FC pulls out of Malaysian football, cites RM40m burnout
IPOH, May 26 — Perak FC has suspended all operations with immediate effect due to financial issues facing the team. Perak FC management, in a statement last night, announced that it has sent back imported players and paid what it can to the staff and players of the Bos Gaurus squad with the remaining funds. 'All staff and players have been informed that Perak FC will not participate in any league or competition in the coming season. 'The players and coaches are now free to seek opportunities at other football clubs,' according to the statement uploaded on its Facebook page. The team management announced that Perak FC has started its journey by clearing the RM8 million debt left by the previous management and allocating RM10 million annually to manage the club's operations. 'Every cent invested was used only for operating costs and salaries of all four teams, coaches and administrative staff last season. 'After three years or two and a half seasons, with investments exceeding RM40 million, we are very sad to announce that there are no more funds left to allocate,' according to a statement from the team's management. The team's management also informed that they are still managing the team's training equipment and remaining merchandise for sale and are waiting for funds from the Malaysian Football League (MFL) to settle outstanding obligations as best as possible. 'To the players and staff, thank you for your service and dedication throughout your time with Perak FC. 'This is not the end we had hoped for but we have to stand on solid ground and accept the fact that the lack of funds has limited everything, and the time has come for the club to close,' the statement said. On May 22, the media reported that Kedah Darul Aman FC (KDA FC) and Perak FC would not be competing in the Super League next season after failing to obtain a national license from the Malaysian Football League (MFL). Earlier on April 26, Perak FC chairman Datuk Seri Azim Zabidi confirmed that the Bos Gaurus had to withdraw from the Super League next season due to financial issues. — Bernama
