EXPLAINER: Where does AFCON, CHAN prize money really go?

When the Africa Cup of Nations (AFCON) or its younger cousin, the African Nations Championship (CHAN), reaches its climax, fans celebrate with flags, songs, and national pride.

But beyond the goals and trophies, there is another story: the flow of millions of dollars in prize money from the Confederation of African Football (CAF).

It is important to note that every tournament, CAF releases money not only to the winning teams but even to those that qualify but get knocked out at the stages. Every African tournament ends with CAF cutting hefty cheques.

At AFCON 2023 in Ivory Coast, the winners scooped USD 7 million, the runners-up USD 4 million, and semi-finalists USD 2.5 million each with teams eliminated in the group stage pocketing USD 500,000.

CHAN, which is exclusively for players who ply their trade in domestic leagues, operates on a smaller scale but still offers life-changing amounts.

At the 2023 edition in Algeria, CAF doubled the winner’s prize money to USD 2 million, with the runners-up getting USD 800,000 and semi-finalists USD 500,000 each.

In the recently concluded CHAN co-hosted by Kenya, Tanzania, and Uganda, CAF announced a 75 per cent increase in prize money, the total purse growing by 32 per cent compared to the previous edition.

Teams that were knocked out at the quarter finals took home Sh58 million.

The four semi-finalists got Sh77 million, while the third-place finisher pocketed Sh90 million.

The runners-up took home Sh155 million, and the champions walked away with a whopping Sh453 million.

Even teams eliminated in the group stage benefited.

Those finishing third in their groups earned Sh39 million, while fourth and fifth-placed sides went home with Sh26 million each.

Whether at AFCON or CHAN, the process is the same—CAF transfers the money to the national football federations, not directly to the players.

FEDERATIONS AS GATEKEEPERS

The national football federations, such as the Football Kenya Federation (FKF), Nigeria Football Federation (NFF) or the Ghana Football Association (GFA), act as financial custodians.

Their first responsibility is covering expenses, which include air tickets, accommodation, training facilities, medical staff, and allowances.

Once the logistical bills are paid, attention shifts to bonuses.

At AFCON, these can be significant, often negotiated before the tournament, and may cover appearance fees, match win bonuses, and progression incentives.

CHAN bonuses tend to be smaller but still vital, since most players earn modest wages in their home leagues.

But in both tournaments, the federation’s word is final.

The balance, if any remains after operational costs and bonuses, is retained for administration or, ideally, football development.

Speaking recently during a radio interview, FKF CEO Harold Ndege stated that the Federation, in partnership with the national government, is spearheading the development of a new policy to bring clarity and structure to the allocation of tournament prize money.

Kenya received Sh58 million in the recent CHAN after being edged out at the quarters.

He said the existing governing body laws do not explicitly mandate them to direct the prize money to player allowances.

“The Sh58.3M from CAF is for football development, not player payouts, but we are creating a policy to ensure Harambee Stars players get standard allowances (currently Sh7,000 daily), with bonuses guided by government input,” he said.

Fans often assume players pocket the bulk of the prize money. In reality, what they receive depends on pre-tournament agreements.

A player might be entitled to a set allowance per game, with bigger bonuses if the team advances. Coaches and technical staff also negotiate their packages.

For CHAN players, the prize money is particularly impactful. Many of them earn low salaries at home, so even a fraction of CAF’s allocation represents months of income.

For AFCON stars, especially those based in Europe, the bonuses are often dwarfed by their club salaries but still matter for national pride.

Governments also step in. Across Africa, it has become tradition for presidents to reward national teams after AFCON or CHAN campaigns with extra cash, cars, or land.

These rewards are separate from CAF’s official prize structure but highlight how football success carries political and social value.

The shadow of disputes Despite the millions at stake, the story is often marred by disputes. AFCON has witnessed dramatic scenes of players refusing to train or threatening boycotts until promised allowances are released.

CHAN has seen similar controversies, with local players, who are less financially secure, sometimes going unpaid for months after tournaments.

Allegations of corruption and mismanagement within federations fuel these tensions.

Critics argue that CAF should pay players directly, bypassing federations, but logistical complications, ranging from taxation to covering team expenses, make such reforms difficult.

Whether it is the glamour of AFCON or the homegrown pride of CHAN, CAF’s prize money always follows the same path. From CAF headquarters to the national federations, and then, ideally, to players, staff, and development projects.