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Following the PSL’s declaration of R1bn revenue in 2018/19, Timothy Molobi and Daniel Mothowagae sat down with the Iron Duke to learn about the business of a successful league and prosperous players
After reaching the R1 billion mark, the PSL bosses will not be resting on their laurels – instead, they will embark on a programme to empower players during and beyond their football days.
The leadership is also looking at ways to make the league more profitable, more attractive and relevant.
In a extensive interview, PSL chairperson Irvin Khoza told City Press that the league was concerned about the plight of retired players.
He said that it reflected badly on the league when players ended up destitute after hanging up their boots and leaving the game.
Khoza also touched on the burning issue of acting chief executive office (CEO) Mato Madlala, who has been in the role for four years now.
How has the PSL managed to remain attractive?
From 1996 – when we repositioned the PSL – to date, our biggest effort [has been on] how to make the platform attractive.
One of the key things was to make sure that the league remains unpredictable. That was assisted by the innovation of providing grants.
The plan was to make sure that we empower those teams that were not marketable. We also had to reduce the league to 16 teams [to reduce fixture congestion].
So we had to sell two franchises [Ria Stars and Free State Stars in 2002], and two teams did not take any grants.
We came up with an innovation that new clubs entering the league wouldn’t play against the big teams in the first few games, giving them a chance to stabilise.
One thing that has emerged, which is the first of its kind, is that of a team being sponsored by a fast-moving consumer goods brand. Margarine brand Rama is the shirt sponsor of Stellenbosch FC.
Fast-moving consumer product brands [struggle to] compete with financial institutions and cellphone companies.
A consistent calendar
The most important thing in sport is to produce fixtures that are reliable, consistent and with integrity.
Without this, you can’t plan. Besides, sponsors do their research in terms of prime time during the game and they buy advertising space around that time. If the fixture is disrupted, you can imagine the consequences.
Future income streams
Wi-Fi hot spots, the future “street corners”, are where the future is. Hot spots are an untapped market and we are bracing ourselves to be at the forefront.
We have also just finalised our betting policy, which will be the biggest income generator going into the future and will take us beyond the R1 billion mark.
The policy has been adopted and it just a matter of understanding and having it signed by clubs for them to be given permission to appoint betting companies.
However, there are big limitations to the rights available to betting partners so that they do not infiltrate the space and ambush via the back door. The biggest concern is to protect the data belonging to the PSL. Let us not inculcate a culture of “every man for himself and God for us all”.
What interventions are in place to help players have a of minimum R2 million at retirement?
We hope to announce a programme in the next few months for players in terms of empowering them.
There are three stages of a professional player.
The first is when they enter into a premiership contract. There is much excitement and everything is a roller coaster ride.
What is most critical at this stage, which we have identified and must hone in on to find solutions, is when the player receives their signing-on fee because, all of sudden, they get many ‘friends’ and don’t listen to the wisdom of their family or club.
The second stage is more critical. It is when the player starts getting big salaries and wastes 10 years without making any investments. They only start thinking of investing in the [final years of their career and have lost time and compound interest-earning potential].
The last stage is when a player has aged and their contract is no longer as lucrative as when they were younger.
We are announcing a programme in the next few months on how to implement interventions [that will stabilise players’ financial health].
They must have a minimum R2 million in the bank and make sure it is not touched until they reach age 35 at least.
We are also hoping to partner with Reverend [Smangaliso] Mkhatshwa [to address] moral degeneration. We are finalising the discussions and we’ll make an announcement before the end of the season.
On prize money...
We don’t increase the prize money [of all PSL competitions], the sponsors do.
The top eight [MTN8] is a difficult one because the eight is a significant figure [R8 million for the winners and an R800 000 appearance fee, and it is launched on August 8].
What keeps Khoza awake at night?
The expectations of the people with [a passion for the beautiful game].
The country is expecting us to do well and this rubs off on Bafana Bafana. When Bafana do well, our players also benefit as it is a window for them to the international market.
On the standard of refereeing...
We received a letter from Mamelodi Sundowns, but the point is that we cannot discuss the issue of referees with no context. We said it would be better to arrange a meeting when we have more information. Clubs are also encouraged to have sessions with experts to go through new rules.
Will a permanent CEO be appointed?
I am on record saying that a permanent CEO must be appointed. The clubs want [Madlala] to continue, but if you become a CEO, you must relinquish your position at your club. You can’t have it both ways.
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