KUALA LUMPUR – What’s driving KL City FC’s current crisis?
A club that once showed immense promise on the local football scene are now facing a rollercoaster of challenges, with fines and sanctions piling up.
The capital club’s rise to prominence was marked by their victory over Johor Darul Ta’zim FC in the 2021 Malaysia Cup final and their qualification for the AFC Asian Cup the following year, making them only the second Malaysian team after the Southern Tigers to achieve this feat.
However, the years that followed have been nothing short of disastrous.
Speaking to Scoop, a former KL City official who requested anonymity revealed that the club’s problems began with their over-reliance on Rinani Group Bhd, a financial consulting firm that once covered 51% of the club’s expenditure, with the remaining 49% funded by other entities such as Kuala Lumpur City Hall (DBKL) and other shareholders.
It was reported that since the middle of last year, Rinani has reduced its funding to just 10%.
“Everything was running smoothly until Rinani came on board. The club was at its peak and heading in the right direction. But as the club grew more ambitious, they had to turn to corporations to meet their goals.
“When Rinani came on board, it didn’t sit well with DBKL, which feared losing control over the club as Rinani demanded a large share of ownership.
“With Rinani as the largest shareholder, the club’s management took the opportunity to demand significant investments in players and coaches, entrusting Rinani with full authority to manage player salaries and EPF contributions.
“However, the management failed to oversee these financial transactions closely. They only realised that Rinani wasn’t fulfilling its duties diligently after the firm reduced its funding to 10%, revealing their lack of commitment to the club.
“Had the club’s management properly liaised with their biggest corporate sponsors without washing their hands of it, none of these ongoing issues would have occurred,” said the official.
It has also been reported that the First Instance Body (FIB), an independent entity appointed by the Malaysian Football League (MFL), may take further action against KL City for their offences if necessary.
Meanwhile, back in 2023, former club president Khalid Abdul Samad and CEO Stanley Bernard took out separate loans totalling RM300,000 just to pay their players, who were overdue on salaries for more than two months.
The situation worsened in July this year when the club’s captain, Paulo Josue, disclosed that he had not received his salary for seven months, relying solely on his savings to get by.
The breaking point came when KL City were recently slapped with severe penalties for submitting inaccurate declarations in their application for this season’s national and AFC licences.
The MFL docked the club six points, fined them RM50,000 and banned them from conducting player transfers until the end of the 2024/2025 season.
Additionally, KL City were barred from applying for the Asian licence for two cycles starting from the upcoming season.
It is understood that the FIB discovered inaccuracies in documents submitted by KL City, including those related to Inland Revenue Board, EPF and Socso contributions. The authenticity of documents previously submitted was also called into question.
All Super League clubs have also been urged by the MFL to ensure the accuracy of their submissions to the body, as licences can be reviewed and revoked if clubs are found guilty of such actions.
KL City currently sit sixth in the Super League, with 11 points from seven games.
The City Boys lost 2-0 in their match against Terengganu FC on Saturday. – August 12, 2024