Why football clubs are credible issuers

DAR ES SALAAM: SIMBA SC and Yanga are two of the most valuable sports brands in East Africa, yet both remain member-owned clubs reliant on sponsorship, gate receipts and the generosity of individual backers. A listing on the Dar es Salaam Stock Exchange (DSE) would convert that fan passion into permanent capital and thus it will improve governance and give supporters a direct financial stake.

This note sets out what the clubs would need to do before listing, what changes after listing and a phased roadmap.

The main conclusions are: Reform comes first. Neither club can list while it remains a members’ association. Both must convert into a company with a clean, audited balance sheet and a clear ownership structure.

Yanga is furthest along. Its Reform Committee has reported an indicative club value of 100bn/- and identified alignment of its legal framework with national regulations as the next step towards outside investment and stock market entry.

Listing is a governance event as much as a funding event. Listed clubs must publish audited accounts, interim results and price-sensitive news and operate with an independent board.

Fans should be built into the structure. A dedicated retail tranche and a members’ protection mechanism (for example a golden share) address the main political risk.

The DSE can absorb a small first listing, not a large one. Liquidity is thin, so offer size, pricing and investor mix need careful design, with a market maker considered from day one.

Why football clubs are credible issuers. Simba and Yanga have a combined following that few Tanzanian corporates can match.

Their continental performance also supports a commercial story. In the CAF five-year ranking released in August 2025, Simba rose to fifth place on 48 points, its first appearance in the top five, while Yanga climbed from 13th to 12th on 34 points.

Yanga also reached the 2023 Confederation Cup final and won its 31st league title in May 2025.

Where the reform and listing process stands

1. Yanga SC: Reform Committee chaired by Alex Mgongolwa reported a club value of 100bn/-. The next step is aligning the legal framework with national regulations to allow external investment and stock market entry. A stadium project in the Jangwani (Msimbazi Basin) area was said to be in the final stage of government approval.

2. Simba SC: Reform process under way. No confirmed listing timetable found in public sources.

3. Other clubs: (for example Azam FC): No listing plans found. Azam is a corporate-owned club and could be structured differently from the member-owned giants.

Rationale for listing

1. Permanent capital: this will help to raise capital for stadium, training ground, academy and debt reduction without reliance on one benefactor.

2. Governance. The club will have regular audited accounts, independent directors and disclosure discipline. Transparency on wages, transfers and agent fees may be uncomfortable.

3. Fan ownership: This will allow supporters become shareholders, deepening loyalty and creating a new retail investor base. Fans may expect pitch results to drive the price and may over-concentrate savings in one stock.

4. Brand and revenue: this listing profile will unlock more sponsorships, merchandising and media-rights negotiations. Commercial targets become public commitments.

5. Valuation discovery: A market price replaces negotiated valuations. Share price will swing with match results.

Steps before an application

Convert the member association into a company limited by shares (or a public company), with assets such as the brand, name, logos, stadium rights and player registrations transferred in a documented, valued transaction.

Agree the role of existing members: how membership rights convert into shares and which rights remain with a members’ body.

Obtain the football governing body approvals needed for the ownership change, including from TFF and the Ministry responsible for sports and confirm any CAF or FIFA club licensing implications.

Settle the intellectual property position so the listed company clearly owns the club’s name, crest and commercial rights.

Prepare at least the audited financial history required by the DSE and CMSA. To be confirmed against the current listing rules.

Regulators and approvals will be required via the following bodies

1. CMSA will have to approve the prospectus (Information memorandum documents) and offer and supervises market conduct and disclosure.

2. DSE will admit the issuer to listing; applies listing rules and continuing obligations. The Enterprise Growth Market segment may suit a first-time issuer with a short track record.

3. TFF and sports ministry Football governance will be involved in ensure the interests of the club ownership rules and public interest considerations are intact and not diluted in any form or way.

4. BRELA and TRA will be involved in the company registration, tax treatment of the asset transfer and of fan share offers.

Several clubs abroad have listed, including Manchester United (NYSE), Juventus, Borussia Dortmund and Celtic. Their experience is mixed: listing has funded investment and improved transparency, but share prices have tracked results and ownership control has stayed a live issue. Dortmund and Celtic show that a listed club can retain a strong supporter-oriented identity. A detailed comparison should be added once the DSE and CMSA positions are known.

Ownership and capital structure options

A. Minority IPO: The club-owned company should sell a minority stake (for example, 20 to 35 per cent) to the public. Members or a members’ trust keep control of the club such as a trust in order to preserve fan control. This option should be a smaller raise, easier for a thin market to absorb.

B. Strategic anchor plus IPO: A cornerstone investor (institution or corporate sponsor) takes a stake alongside a public offer. This will help to bring capital and credibility but needs safeguards on influence over football decisions.

C. Fan-first offer: A reserved tranche for members and supporters, with preferential allocation, mobile-money subscriptions and small minimum tickets. This option will require a strong brand and inclusion story. This will need retail education and caps to limit concentration.

D. Dual-class or golden share: A special share held by a members’ trust gives a veto over crest, name, home ground and relocation. This option will directly address the political risk of sale or relocation. This will require the company’s laws and CMSA & DSE’s listing rules to accommodate this request.

Ideally, if you combine Option A with Options C and D: a minority public offer, a ring-fenced retail tranche for supporters and a members’ golden share protecting the club’s identity. Add a cornerstone investor (Option B) only if the raise size requires it.

Use of proceeds

Stadium and training facilities, including a modern ground for Yanga in Jangwani, subject to government approval.

Youth academy and women’s team development. Repayment of existing debt and settlement of arrears, so the club lists with a clean balance sheet.

Commercial infrastructure: merchandising, ticketing and digital platforms and fan data. A prudent working capital reserve, so squad spending is not solely tied to the next season’s results.

Governance

Board with a majority of non-executive and independent directors and separate audit, risk and remuneration committees.

Clear separation between the football side (technical bench, transfers) and the commercial and financial management.

Approved policies on related-party transactions, agent fees, player trading and conflicts of interest. A members’ council or trust that continues to represent supporters and holds the golden share.

Continuing Obligations

Once the company has been listed; the following items will be required to be continued:

1. Periodic reporting: Audited annual accounts and interim results published to the market within the deadlines set by the listing rules.

2. Price-sensitive announcements: Major Signings, coach changes, sponsorship deals, disciplinary sanctions, injuries to key players and stadium decisions may require prompt disclosure.

3. Insider information controls: Strict handling of transfer negotiations and squad information, with trading windows for directors and staff.

4. Shareholder communication: Annual general meeting, investor briefings and a dedicated investor relations function.

5. Dividend policy: A stated policy balancing squad investment, infrastructure and returns to shareholders. Business

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Model after Listing

A listed club will be valued on the quality and growth of its recurring revenue, not just trophies.

The model should be built around: Matchday: stadium ownership or long-term rights, premium hospitality and dynamic ticketing.

Commercial: multi-year sponsorship, kit and merchandise, club-branded financial and telecom products.

Media: domestic broadcast revenue, CAF prize money and digital content.

Player trading: academy development and transfer sales, shown transparently and not relied on to fund day-to-day costs.

Fan engagement: membership, loyalty and mobile-money payments that give direct access to supporters. Valuation approaches need to be developed including discounted cash flow (DCF) on normalised revenues, comparison with listed peers and recent club transactions and brand valuation.

Yanga’s reported 100bn/- in value should be tested against these methods using audited financials.

Club’s Roadmap to listing

Reform: It should take nine months to complete reform committee work; agree on the conversion model and member rights, appoint legal, financial and reporting advisers; clear arrears; settle IP and asset transfer.

Readiness this will between six to fifteen months where the Audited financials; governance build-out; board recruitment; investor education; early engagement with CMSA, DSE and TFF will be completed.

3. Offer preparation should at least nine months to carry out valuation, prospectus, long-form report, marketing, retail distribution via brokers and mobile platforms; cornerstone discussions.

4. IPO and listing are normally three to six months with CMSA approval, offer period, allotment, DSE admission and first trading; market maker in place.

5. Lastly, post-listing exercise which will be on ongoing with a reporting calendar in place such as investor relations, dividend policy and follow-on funding if needed. Other Clubs and next steps.

Smaller clubs and corporate-owned clubs such as Azam FC are unlikely to be ready for a main market listing soon.

For them, a possible route should be an Enterprise Growth Market (EGM) listing, a club-linked collective investment scheme, or a bond for infrastructure, which could be assessed separately.

Immediate next steps

Confirm the current status of Simba and Yanga reform committees and any CMSA or DSE engagement. Obtain audited financials for both clubs and test the reported valuations.

Confirm the legal route for company conversion, member share allocation and a golden share. Confirm DSE listing segment eligibility and minimum requirements.

Design a retail allocation and mobile-money subscription approach for fans. Develop financial projections and a valuation range for each club.