TS Galaxy struggles to pay its players' salaries for the second consecutive month, it's become clear that running a PSL club in South Africa is a costly and challenging endeavor. Daily South African News has investigated the monthly expenses of operating a PSL team in contrast to the monthly grant from the Premier Soccer League to get a better understanding of the financial challenges that clubs face. Recent stories of non-payment at Swallows FC indicate that other DStv Premiership clubs may be struggling to stay afloat.
Despite the glamour and prestige that come with running a top-flight football club, the reality is that it's not a lucrative business in South Africa. Year after year, one or two club owners seek to sell their clubs, unable to cope with the financial pressures of running a professional team. Bidvest Wits, one of the oldest and most successful football clubs in South Africa, saw its proud history come to a bitter end in 2020, just a year before it was set to celebrate its centenary.
Similarly, Bloemfontein Celtic, a beloved club in the football-crazy community of Bloem, was sold due to the high costs of running a club. Other clubs that have been sold in recent years include Highlands Park, Platinum Stars, Free State Stars, Mpumalanga Black Aces, and Thanda Royal Zulu, all citing financial constraints as the reason for their sale.
It's clear that managing a professional football club in South Africa is a challenging task, requiring significant financial investment and a lot of hard work. While the glamour and prestige that come with owning a football club may be enticing, it's essential to remember that it's a business that requires significant resources to operate successfully.
WHAT IS THE MONTHLY GRANT AMOUNT FOR PSL?
Football is a game loved by millions, but it is also a business that requires careful management of resources. In the South African Premier Soccer League (PSL), clubs receive a monthly grant of R2.3 million, including VAT. However, this amount does not cover all the expenses a club has to incur in a month. In fact, a Gauteng-based DStv Premiership club owner, who chose to remain anonymous, has revealed that a club needs to cover all its monthly expenses from the R2 million that they receive after VAT is deducted.
Let's break down the costs involved in running a PSL club. Assuming the club plays four games in a month, with two of them away from home, the costs can quickly add up. For instance, when the club travels to play AmaZulu in Durban, the players and staff flights alone can cost up to R150 000. This figure does not include accommodation and food for the team and staff, which can add another R130 000 to the total cost of the trip.
Additionally, when a club hosts a game, there are stadium costs to consider. These expenses can come to R250 000, and hiring a bus for the team is an additional R10 000. In total, the cost of two away games can amount to about R600 000, while a home game would cost around R400 000 when security, hospitality, and medical services costs are included.
Therefore, in a month with two home games and two away games, the club would spend approximately R1.4 million before salaries. This amount does not even account for other expenses such as player bonuses, transfers, and maintaining the club's facilities.
Running a successful PSL club requires careful financial planning and management. Despite receiving a monthly grant of R2.3 million, the costs associated with playing games both at home and away can quickly add up. Clubs must find ways to generate revenue through sponsorships, ticket sales, and merchandise to cover their expenses and ensure their long-term sustainability.
WHAT ARE THE MONTHLY COSTS OF RUNNING KAIZER CHIEFS?
As the Premier Soccer League (PSL) continues to grow in popularity, the financial demands of running a successful club have become increasingly apparent. With only a handful of teams boasting substantial sponsors, the burden of funding has largely fallen on the shoulders of wealthy owners.
Of the 16 PSL clubs, the likes of Kaizer Chiefs, Orlando Pirates, SuperSport United, and Ajax Cape Town have been fortunate enough to secure lucrative sponsorships. However, for the majority of teams, such financial backing remains elusive.
This has led to a situation where successful clubs, such as Mamelodi Sundowns, Sekhukhune United, AmaZulu, and Royal AM, rely heavily on the deep pockets of their owners. While this can be an effective strategy in the short term, it is not a sustainable solution in the long run.
According to estimates, running a club like Kaizer Chiefs can cost anywhere from R3.5 million to R5 million per month. Given that the PSL only provides a monthly grant of R2 million, it's easy to see why sponsors have to dig deep into their pockets to keep these teams afloat.
To make matters worse, the economic downturn brought on by the COVID-19 pandemic has further exacerbated the financial strain on PSL clubs. With revenue streams drying up and expenses continuing to mount, many teams have been forced to make difficult decisions to stay afloat.
Despite these challenges, the PSL remains one of the most exciting and competitive football leagues in the world. With passionate fans, talented players, and world-class stadiums, the potential for growth and success is enormous.
However, for this potential to be fully realized, it is imperative that more sponsors come forward to support the PSL's smaller clubs. By doing so, they can help ensure that these teams can continue to compete at the highest level and contribute to the growth and success of South African football as a whole.
https://45min.co.za/creators/kaizer-chiefs-are-set-to-welcome-a-new-coach-174
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