Wed, 22 Mar 2000

PSSI trickles money from sponsors to clubs

JAKARTA (JP): The Soccer Association of Indonesia (PSSI) announced that 28 clubs in the main division will receive Rp 3 billion (US$405,000) from state Bank Mandiri, the new sponsor for the premier division soccer league this year.

PSSI's treasurer Irawadi said after launching new Bank Mandiri Soccer League logo on Tuesday that each club will receive about Rp 106 million to stage the remaining matches until finish in June.

"The clubs are obliged to attach the Bank Mandiri logo on their apparel. They also have to display the minimum of six A- boards and 25 banners when hosting a match," he said.

PSSI signed a Rp 7.3 billion sponsorship deal early this month with Bank Mandiri. The league name is officially changed on Tuesday from the sixth Indonesian Soccer League (Ligina) to Bank Mandiri soccer league.

Bank Mandiri was created from the merging of Bank Bumi Daya, Bank Dagang Negara, Bank Ekspor Impor Indonesia and Bank Pembangunan Indonesia (Bapindo).

Irawadi said that some 10 percent of the money or Rp 730 million will be cut for tax.

"Bank Mandiri must pay tax so the money was reduced immediately. We hope that the government will reduce the tax rate, so we can give more to the clubs," he said.

About Rp 1.3 billion will be used to advertise the league in television commercials and newspapers. International Management Group foreign consultant, hired by PSSI to organize and manage the commercials, will receive Rp 527 million.

PSSI also earmarks some Rp 400 million to finance the semifinals and final matches. Some Rp 200 million is given to the association's disciplinary commission during the league. Another Rp 100 million is allocated to the appeal commission.

Irawadi said that the remaining amount of Rp 1.043 billion will go to PSSI.

"We are a little undecided. Some amount will be used to finance the senior national team preparation for the Asian Cup in Lebanon, the under-19 team and the under-16 team. The rest will be used to cover PSSI's operational costs during the league," he said.

Despite the fund allocation, many clubs regard the amount of money as insignificant.

Kadir Halid, the team manager for PSM Makassar, said that his club had spent about Rp 5 billion this season, while an official of Persebaya Surabaya disclosed that the club had spent Rp 2 billion.

Unlike clubs with private sponsors, Persipura Jayapura's team manager Spencer Infandi said his club still had to rely on the Papuan authority to finance its home and away matches.

But all the clubs agreed that in the future, PSSI should make the allocation based on the club's performance.

"If our spectators increase in the next league, PSSI should revise its budget allocation," Infandi said.

"We accept PSSI's decision this year, but next year, hopefully it will consider the club's commercial value before deciding the money allocation," Halid added.(ivy)