EFFECT OF CORPORATE GOVERNANCE PRACTICES ON PERFORMANCE OF KENYA FOOTBALL PREMIER LEAGUE
TUITOEK, PAUL KIPRUTO
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Football is an “industry” and clubs “businesses” characterized by competition for resources. The opportunities presented by expanding markets and the challenges of an environment characterized by increasing competition require that clubs successfully position themselves to build sustainable, competitive advantage. The main aim of the study was to analyze the effects of corporate governance on performance of soccer management in Kenya Premier League. Particularly the study analyzed; the effect of board composition on performance, board structure on performance, corporate reporting practices on performance of Kenya Football Premier League and to find out the effect of corporate leadership structure on performance of Kenya Football Premier League. The studyadopted descriptive research design taking 96 elected officials and 48 employees giving a total of 144-target population who understood key issues of football governanceas the target population of the study. The study used proportional stratified random sampling technique to select the respondents. Data wascollected using both primary data collection tools. Structured questionnaires administered to the selected respondentswas used elicit information related to governance structure of the Clubs whereas both structured questionnaire and secondary data collection form was used to collect information related to Kenya Football Premier League Performance. To establish relationship between differentiation strategy and perceived attractiveness of the clubs was measured using Pearson Correlation. All inferential statistics will be tested at ∝ = 0.05 significance level. The first objective of the study was to establish the effect of board composition on performance of Kenya Football Premier League. The study established that the Premier league Club’s boards had other board members who were not necessarily footballs, which was a good idea in terms of bring into the clubs varied views that are meant to make the clubs perform well. In spite of board membership being drawn from members who were not necessarily footballs, the board lacked wider representation in terms of gender, institutional representation like the government, age variability making the board not to have the face of Kenya, that is most clubs were aligned to specific tribe or counties, the idea which was a replica of their respective boards.. The study established that the boards of the clubs in Kenya Premier League had ineffective corporate reporting practices affecting the performance of the clubs. The boards did not report to the Ministry of Sports who is mandated to regulate sports policies in Kenya nor did they report to FKF, which is their association umbrella body and also the organizers of Kenya Premier League and therefore were not accountable to the public. The poor reporting practices also affected the clubs internally with their management team also failing to report to the board complicating the issues of accountability further.