Nairametrics| The National Association of Securities Dealers (NASD), in collaboration with the League Management Company (LMC), has announced that eight Nigerian football clubs are in the process of listing.
The clubs to be listed are Kano Pillars, Enyimba Football Club, Shooting Stars Football Club, Enugu Rangers Football Club, MFM Football Club, Wikki Tourists Football Club, Gombe United Football Club and El-Kanemi Warriors Football Club. These clubs were nominated by the League Management Committee as pilots in preparation for other interested football clubs. The LMC has invited Issuing Houses who can act as financial advisers to the Clubs to express interest.
The proposed listing is a win-win situation for both the clubs and the NASD. This brings to fruition discussions that began in July 2016 between the two organizations. The listing will bring more awareness to the NASD, as Nigerians will pay attention to other stocks listed there, leading to increased trading volumes on the exchange. For the football clubs, listing will give them access to financing and investors that will run them in a more professional manner.
Football clubs in Nigeria are majorly owned by state governments and a handful of private individuals. Access to funding is thus limited, and the clubs cannot compete effectively at both continental and global levels. Increased financing for the clubs, will mean better salaries and wages for the players and management. They would also be able to make crucial investments such as owning their own stadia and training facilities. This then trickles down to the immediate economy, through creation of new jobs and increased spending power.
The NASD is a trading platform for unlisted securities in the country. Unlisted securities are shares of companies not trading on the Nigerian Stock Exchange (NSE). The LMC is the body in charge of running the Nigerian Professional Football League (NPFL). It is owned by the Nigerian Football Federation (NFF) and the participating football clubs. There are currently 20 football teams in the League.