KUCHING: Malaysia’s football crisis is now seen as a system-wide failure, with poor financial management and a weak support structure pushing many clubs to the brink of collapse.
Last Tuesday, Youth and Sports Minister, Hannah Yeoh, stressed that only those with real financial and managerial capabilities should be entrusted with running football clubs.
“Football has a large audience, which is why I believe that to convince sponsors, all they want to see is how a club is run , how they pay salaries and look after the welfare of players,” she said.
The root of the issue, according to local sports analyst, Datuk Pekan Ramli, is that many clubs spend far beyond their means, a fundamental breach of basic economic principles.
“When spending exceeds income, deficits and debt inevitably follow. It’s like earning RM1,000 a month but having RM5,000 in expenses. Where else can the remaining amount come from except through borrowing?
“The burden increases each month, especially when there’s no effort to ‘work overtime’ to boost income,” he added.
This financial strain has been compounded by poor revenue-generation strategies.
Unlike leagues such as the English Premier League (EPL), where clubs thrive on matchday income, broadcasting rights, sponsorships and merchandise sales, most Malaysian clubs struggle to diversify their income.
Limited market size and weak professional infrastructure leave many clubs overly reliant on inconsistent funding.
Pekan believes the crisis has grown beyond individual clubs, and now reflects a broader failure of the football system – spanning administration, governance and fan engagement.
“Overall, this is clearly a systemic failure that can affect the entire business ecosystem, regardless of size, whether large-scale or small.
“The heart of success lies in financial management. It’s not just about prudent spending or cost control, but also about being smart in generating income from various sources,” he said.
With calls growing for a more proactive role from the Football Association of Malaysia (FAM) and Malaysian Football League (MFL), Pekan argues that lax oversight and weak enforcement have allowed financial issues to fester – from long-standing debts and unpaid salaries to poor financial controls, all of which now threaten the league’s credibility.
Without urgent reform, stakeholders warn the Malaysian football ecosystem may collapse under its own weight.
“While clubs can be blamed for the current issues plaguing Malaysian football, governing bodies like FAM and MFL must also be held accountable for their lack of firmness in enforcing various regulations,” Pekan added.
