admin
Robson Sharuko-Senior Sports Editor
THE CAPS United ownership has changed hands after a group of investors, with links to an English Premiership club, snapped the controlling stake in the Harare giants.
The deal was sealed in the capital last night.
Details about how much the franchise exchanged hands for were not immediately made available yesterday.
Affectionately known as the Green Machine, the five-time domestic league champions have been owned by Harare businessmen, Farai Jere and Nhamo Tutisani, through their investment vehicles.
Jere, who is also the Premier Soccer League chairman, was the majority shareholder in the pact.
He took over as majority shareholder, after a deal in which the club’s former owner, Twine Phiri, disposed his stake in the club and left to pursue other interests.
Phiri had acquired the franchise from CAPS Holdings, at the turn of the millennium and, for some time, ran the Green Machine, on his own.
‘’A deal, which is part of the thrust by the two major shareholders, to dispose part of their stake, has been reached tonight with some new investors, who have links to an EPL club,’’ sources said last night.
‘“As we speak, the two parties have reached an agreement, and agreed on how they will move forward.
“This is serious business, and that is why this agreement was struck at the offices of a leading lawyer in the country, so that every party was very clear on what they were putting their signatures into.
“It’s a good deal for CAPS United, who were always looking out for fresh investment, to help the club offset the challenges that have been brought in by a difficult operating environment, which has been made even worse by Covid-19.
“Remember, CAPS United also lost their principal backers, NetOne, who withdrew from the sponsorship agreement, where the company was taking care of the salaries for the players and their technical crew.
“That had a huge impact, on the club’s operations, but this deal will change everything and the club will now be able to compete with the best sponsored clubs in the country.’’
CAPS United had set a five-year timeline, which would see Jere and Tutisani, shedding some of their shares.
In their last statement, related to how this exercise was progressing, CAPS United revealed that while the environment had changed, after the Covid-19 pandemic struck, they remained resolute in pursuing their goals.
“While the environment has changed drastically, due to a host of factors, including the devastating and disruptive Covid-19, commercialisation of the club remains the only option for the institution given the nature of the body corporate that owns the football club, CAPS United,’’ said Tutisani.
“The owners of the club, being a private limited company, harbour, as one its primary corporate objective, a good return on investment, unlike other football clubs that are geared to register good industrial relations and/or community relations.
“We will pursue good return on emotions investment for our supporters, a health return on sponsorship investment for the sponsors as well as strive to be a good corporate citizen.
“This exercise should come into full effect within a period of five years, withstanding the disruptions of Covid-19 and other external factors obtaining in the operating business arena.’’
Tutisani said if packaged well, the brand should be able to attract good investors.
“It is the duty of CAPS United Football Club leadership, and management, to package the institution in a manner that will make it commercial attractive to all key stakeholders such as fans, supporters, players, sponsors and, more importantly, scouts for the Big Five league clubs,’’ he said.
“This explains why we are determined to make the right decisions to transform the club into an outfit that will resonate with a good destination for investments by some of the key stakeholders noted above.
“Going forward, we have settled for a capital structure that we believe is ideal for the transformation we are gunning for at CAPS United Football Club.
“We are well aware of the bumpy road ahead of us, but we are equally determined to formulate appropriate capital raising strategies that will yield requisite resources for the commercialisation project.’’
Online Reporter