Viewing cable 09RANGOON355, BURMA: CRONIES LAUNCH NEW SOCCER LEAGUE

Viewing cable 09RANGOON355, BURMA: CRONIES LAUNCH NEW SOCCER LEAGUE

 

Reference ID	Created	Released	Classification	Origin
09RANGOON355	2009-06-12 04:04	2010-12-06 15:03	CONFIDENTIAL	Embassy Rangoon

C O N F I D E N T I A L SECTION 01 OF 03 RANGOON 000355 

SIPDIS 

STATE FOR EAP/MLS, INR/EAP, EEB/TFS 
PACOM FOR FPA 
TREASURY FOR OASIA, OFAC 

EO 12958 DECL: 06/12/2019 
TAGS ECON, EFIN, ETRD, PREL, PINR, BM 

SUBJECT: BURMA: CRONIES LAUNCH NEW SOCCER LEAGUE 

REF: RANGOON 330
RANGOON 00000355 001.6 OF 003

Classified By: Economic Officer Samantha A. Carl-Yoder for

Reasons 1.4 (b and d).

Summary
------- 

¶1. (C) On the alleged order of Senior General Than Shwe,

regime cronies and businessmen launched the new Myanmar

National Football League (MNL) on May 16, 2009. To date,

the MNL has been a huge success, with high attendance and 

wide national TV and radio coverage. It is unclear if there

is any political motivation behind the MNL, although many 

Burmese businessmen speculate the regime is using it as a 

way to distract the populace from ongoing political and 

economic problems. End Summary.

Let the Games Begin
------------------- 

¶2. (C) The Myanmar Football Federation (MFF), chaired 

by regime crony Zaw Zaw, launched the Myanmar National 

Football League on May 16, 2009. The league, the first 

of its kind, has eight professional teams representing 

different states and divisions. During the May-July season,

teams compete for the National Cup and title of Myanmar

National League Champion. The teams are sponsored by

regime cronies and businessmen (listed below). According

to XXXXXXXXXXXX, Zaw Zaw and Than Shwe’s grandson created 

the idea of a professional soccer league more than a year 

ago but had to obtain the Senior General’s support first.

One well-connected source reports that the grandson wanted

Than Shwe to offer USD 1 billion for Manchester United. 

The Senior General thought that sort of expenditure could

look bad, so he opted to create for Burma a league of 

its own. In January, Secretary-1 reportedly told select

Burmese businessmen that Than Shwe had “chosen”  them to

be the owners of the new professional soccer teams.

XXXXXXXXXXXX said the owners are responsible for paying 

all costs, including team salaries, housing and transportation,

uniform costs, and advertising for the new league.

In addition, owners must build new stadiums in their 

respective regions by 2011, at an estimated cost of USD

one million per stadium.

--------------------------------------------- ------ 
 Myanmar National League  2009 Teams
--------------------------------------------- ------ 
Team Owner and Company Sanctions  Subject
--------------------------------------------- ------ 

Kanbawza Aung Ko Win/Kanbawza Bank No
Delta United Zaw Win Shaine/Ayeyar Hintha No  

(financially backed by Zaw  Zaw, owner of Max Myanmar Yes
Magway Steven Law/Asia World Co. Yes
Okkthar United Aung Kyaw Moe/Intl Brewery No  Trading Co.
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Zayar Shwe Myay Win Myint/Chair, Myanmar No  Chamber Of Commerce
Yangon United Tay Za/Htoo Trading Yes
Southern Myanmar Htay Myint/Yuzana Co. Yes
Yadanarbon Sai Sam Htun/Loi Hein Co. No  (sole distributor of

soft  drinks produced by SOEs)

--------------------------------------------- ------ 

¶3. (C) The eight teams currently practice and play 

in Rangoon; by 2011, the MNL should have a nationwide

presence, XXXXXXXXXXXX  stated. The teams have an average

of 40 players and salaries range from between USD 500-2000

a month, depending on the caliber of the players.

XXXXXXXXXXXX  told us that Steven Law’s Magway team

pays the highest salaries, spending USD 155,000 a month,

while Win Myint’s Zayar Shwe Myay team only spends 

USD 52,200 a month on salaries. Tay Za, Aung Ko Win, 

and Steven Law also pay their players high signing

bonuses, XXXXXXXXXXXX stated. According to XXXXXXXXXXXX ,

Aung Ko Win, owner of the Kanbawza team, has budgeted 

USD 2 million for the 2009 season. Other owners will 

spend approximately the same amount, he noted.

¶4. (C) Several of the team owners have taken their 

obligations seriously, XXXXXXXXXXXX stated. For example,

Tay Za has hired five players from Africa; and Zaw Zaw,

who financially backs the Delta United team despite

being Chair of the MFF, recruited several Argentinean

players. XXXXXXXXXXXX  noted that Aung Kyaw Moe, owner

of Okkthar United Team and the International Brewery

Trade Co. (which produces Myanmar Beer and Grand Royal

Whiskey), is currently sponsoring the July 2009 National 

Cup. Tay Za’s Air Bagan allegedly plans to host the next

cup, XXXXXXXXXXXX stated.

So What’s In it for The Owners?
------------------------------- 

¶5. (C) When asked why the owners would participate in

such an expensive endeavor, XXXXXXXXXXXX  observed that

they had little choice. “When the Senior General asks

someone to do something, you do it with no complaints,”

he stated. He then added that several of the businessmen

will receive incentives from the regime, such as 

construction contracts, new gem and jade mines, and 

import permits, which will more than offset their costs.

Sponsorship may also bring its own benefits. XXXXXXXXXXXX 

explained that due to advertising associated with the MNL,

several owners, including Sai Sam Htun who owns Alpine Water,

have seen an immediate increase in business revenue. Several 

owners have plans to sell team merchandise.  As the league 

expands, business should boom, although it will take a few

years, he concluded.

Early Success
------------- 

¶6. (C) The MNL to date has been quite successful. Tickets

are relatively expensive by Burmese standards, ranging 

from USD .50 to USD 1, which can be as much as half a 

day’s salary for the average Burmese. Nevertheless,

there has been heavy attendance at most of the games,

with several games sold out.  Reportedly though, owners

paid up to USD 3 per head to entice fans to the first 

games, when it looked like ticket
RANGOON 00000355 003.2 OF 003
sales were lagging. Proceeds from the MNL are used to 

support the MFF. XXXXXXXXXXXX noted that for the more 

popular teams, such as Yadanarbon and Magway, scalpers 

are able to sell tickets for up to USD 1.50. XXXXXXXXXXXX 

commented that given the continued political and economic

repression of the people, he understands why they want 

to spend their money on something enjoyable. For those

who cannot afford to attend the games, MRTV (the GOB’s 

television network) shows the games live. During Saturdays

and Sundays at 4pm, local teashops are filled with Burmese 

watching the games. Additionally, the matches are broadcast

on the radio.

MNL: A Distraction or Just Good Fun?
------------------------------------- 

¶7. (C) While admitting that the MNL is “just good fun,”

a number of our contacts question the regime’s motivation 

behind creating the league. Several have commented that it

may be a way for the regime to distract the people from ongoing political and economic problems, or to divert their attention from criticism of the upcoming 2010 elections. Many speculate that the regime will suspend the 2010 MNL cup, should it fall close to the election date, as the government may not want large crowds of people to gather. That remains to be seen. Whatever the reason, the MNL is proving an early success, and something for the Burmese to talk about without threatening the regime.
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