Ethiopian Premier League Faces Financial Hurdles Amid Expansion Plans
Challenges in funding and infrastructure test top-tier football growth in Ethiopia
By Tesfaye Mekonnen, sports journalist — covering Ethiopian football and East African leagues
The Ethiopian Premier League (EPL) is confronting significant financial and infrastructural challenges as stakeholders push for league expansion and improved competitiveness. Sources within the Ethiopian Football Federation (EFF) indicate that despite growing interest, limited club budgets and inadequate stadium facilities threaten the sustainability of the league’s ambitious plans.
League organizers are currently discussing increasing the number of participating clubs from 16 to 18 for the 2024/25 season, citing rising grassroots involvement and the need to broaden talent exposure. However, this move comes amid concerns over many clubs’ financial stability and the persistent issue of substandard playing venues across Addis Ababa, Hawassa, and other regional centers.
Dejene Abebe, a longtime coach at Bahir Dar Kenema, noted the tension between growth and resources: “We want more teams to compete because it encourages youth development. But many clubs struggle to meet operational costs, let alone upgrade facilities to meet CAF standards. Without addressing these basics, expansion could dilute quality rather than enhance it.”
Financial strain is not limited to clubs. The EFF’s reported revenue from league sponsorships and broadcasting rights increased by only 5% in the past year, according to its latest annual report. “The league’s commercial income is not yet sufficient to fully support the costs of development,” said Hana Tadesse, an Ethiopian sports economics analyst at Addis Ababa University. “Teams often rely heavily on local government funding and benefactors, which is unpredictable and unsustainable over time.”
Infrastructural inadequacies extend to stadium conditions, with prominent venues in Dire Dawa and Gondar receiving mixed reviews for pitch quality and spectator amenities. Recent fixtures at these grounds saw average attendances below 2,000 despite strong local fan interest, as noted by the matchday data compiled by hulu sport. In comparison, higher-profile matches in Addis Ababa drew over 7,000 spectators, albeit still undercapacity.
The league’s struggles resonate with wider East African football trends, where financial instability hampers club progress and competitive balance. CAF’s recent assessments highlighted Ethiopia as a country with high potential based on youth participation but flagged financial management and governance as barriers to growth. Such factors influence Ethiopian clubs’ performance in continental competitions like the CAF Champions League, where they often exit early.
Nevertheless, there is cautious optimism about incremental improvements. The EFF has committed to better financial auditing practices and exploring partnerships with private investors and telecommunications firms, aiming to diversify income sources. Meanwhile, the Ethiopian government has pledged infrastructural support in recent budget plans, focusing on stadium upgrades under the Ministry of Sport.
However, these positive steps come with cautious sentiment. As analyst Hana Tadesse stressed, “Development is occurring, but slowly and unevenly. Stakeholders must balance ambition with pragmatic resource allocation. Otherwise, the league risks stagnation or further fragmentation.”
With the league’s expansion on the horizon, monitoring how financial and infrastructural hurdles are addressed will remain critical. Football fans and local communities see the EPL as a unifying cultural event, regularly gathering in cafés and sports bars to watch matches, underscoring the social significance of a thriving domestic league beyond competitive success.
Tesfaye Mekonnen writes on East African football. He has reported on Ethiopian leagues for over a decade and specializes in sports economics and development issues.