Short term Profits Versus Long term Development

(Profit making commercial enterprise) Short-termism

If I were an entrepreneur, and wanted an immediate return of profits from an event such as the safari sevens I would set the price for the event at Kshs 1,500. Why?
 Kenya seven is riding on a current high.
 The publicity they have received is phenomenal. And will require only a minimal advertising spend for reminder adverts.
 A large number of non traditional fans will grace this year’s event.
 A large number of entities are lining up to feed off the success to promote their interests and products.
 It has the making of being the highest revenue grossing event held by the union in its history as the current interest can easily be translated to attendance.

(Facilitation/development centered enterprise) Long-termism

After considering all the above and their linkages to my core purpose which is to develop the profile of the game, i would price the event at Kshs 300 after appreciating that:
 The vast majority of Kenyans live below the poverty line.
 A very large number of fans who would have otherwise attended the event will be priced out.
 We need to get as many of these interested fans whold not be able to afford entry to attend the event.
 The global credit crunch has had a great impact in the world (Kenya included) and has led to reduced recreational/nonessential expenditure.
 Rugby is perceived as an elitist sport and needs to be all inclusive.
 We need to be Kenya’s, the regions and the world’s number one sport. And it all starts with attracting all and sundry to participate in all facets of the game and most importantly the fan.


I am of the long term school and were i in the union as part of the safari sevens organizing committee I would have had the following input:

 That all activities that are carried out have to have a targeted outcome that corresponds with our mission statement.
 That even though we must take advantage of all events to make a profit that leads to self sufficiency in meeting recurrent office running, and development expenditure, we should also consider the impact of all profit centered decisions with respect to our overall objectives. The pricing decision of soccer matches of the Harambee stars takes into consideration the ability of the poor to afford the set price even where a higher price can still guarantee a sell out
 That we need to shade off our elitist tag and bring in the masses to expand our pool of players and also to create the critical masses required to attract and maintain sponsorship interest.
 That we need to tap into the publicity and visibility currently being enjoyed by our sevens team to firstly bring in, accommodate and lock in the potential numerous fans that have been attracted.
 That pricing a season ticket at 300bob could have led to a need for change of venue as the fans attracted by the low price would have been numerous am scared to even imagine the numbers that would afford entry at that price.
 That the fans would provide the primary basis for spreading the game into new frontiers.
 That this alone could not be quantified in monetary fans and was greater than any short-term windfall as it would guarantee an astronomical and perpetual income flow in the future.
 That sporting events and disciplines that used fill stadia in the not too distant past are on a all time low due to their lack of results and or current low standards and that we can give reason to the fans to come out in numbers to support their nation in a sport that is exciting and is knocking on world championship.

But we all know the union and it is given:

 That the net profit/loss and revenues generated from the event will be unknown as the accounts will delayed and or hidden from all prying eyes.
 That the union will remain officially broke and will shout it out to everyone with ears without presenting accounts.
 That they incorporated a company to run the safari sevens with the sole purpose of legitimizing a deviation from their core purpose as a not for profit organization, and shield from the scrutiny of stakeholders the appropriation of profits generated and expenditures incurred.

It is also quite disheartening:

That Jua Kali sold his image/brand to Orange for 10million and the union could not do significantly better whilst blessed with a bigger and more visible/marketable product/brand (i.e. the seven team) that cuts across all social demographics and the ready availability of marketing/advertising personnel resources’ in the wider rugby circles at its disposal.

All in all, the union must have had pure profiteering reasons for their pricing decision, but I wonder whether they considered their core purpose mission and vision and all the long term benefits and shortfalls.