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Prominent lawyer and professional football club owner Tim Sukazi predicts that many local clubs may resort to player salary cuts because of the effect of the Covid-19 coronavirus on the country in terms of the lockdown and the economy.
This week, AmaZulu became the first premier division club to declare that it would not be able to pay full salaries this month, with the NFD’s GladAfrica Championship campaigners Cape Umoya United also confirming they were embarking on a process to cut salaries.
“In my view, many clubs will go the route of wage reductions because of the impact of the coronavirus,” Sukazi, the boss of first division outfit TS Galaxy, told City Press.
“In South Africa, the game itself is reliant on sponsorship and, if that isn’t forthcoming, it has a negative impact on the coffers of the clubs. This filters down to the employees, including the players,” explained the former player agent.
“The clubs are also funded by the PSL monthly grants, but club owners still need to top these up to ensure clubs remain afloat. The contract may be in place, but if the money’s not there, then it’s not there. The club will be indebted to its employees going forward.”
City Press has established that, on average, the premier division’s monthly spend is about R3 million, while NFD clubs’ figures are anything from R800 000 to R1.5 million.
Fortunately, the league is still paying its monthly grants of R2 million to Absa Premiership sides and R500 000 to the second-tier Glads.
READ: Complexities of sport sponsorship amid covid-19 crisis
Sukazi said Galaxy was assessing the situation, but was worried that the cancellation or postponement of sports events would make matters worse for football.
Umoya director of football Roger De Sá said their measures (a 50% salary slash) would be put in place across the board at the Mother City-based club.
“We told the players about it last week. The club has applied for appropriate funding [from the government relief fund]. Once this is received, the players will be paid. This applies to everyone on the club’s payroll, from players to junior coaches, as well as to me. Once the lockdown’s over, the balance [owing to everyone] should be sorted within a few days,” De Sá told City Press.
Late last month, world football governing body Fifa suggested that, to “ensure clubs do not go bankrupt”, they, players and coaches needed to “work together” to agree on pay deferrals or cuts.
Global players’ union Fifpro has called on clubs with short-term financial difficulties to meet with national player unions to negotiate “fair and proportionate arrangements which respect their legal obligations”.
Fifpro argued that most players outside the world’s biggest leagues were earning salaries on the same level as below-average domestic income and would be severely affected by salary decreases, adding that only a minority of players enjoyed luxury lifestyles.
The SA Football Players Union (Safpu) said it was aware that the majority of local clubs had been engaged in “serious, cordial conversations” about the pay cuts.
READ: Safa boss quits ... is it to do with looming retrenchments?
Its president, Thulaganyo Gaoshubelwe, said the watchdog body would keep an eye on the situation to ensure there were proper consultations with its members.
“We must also thank the clubs who continue to pay player salaries during this time,” said Gaoshubelwe.
However, he registered the union’s displeasure at AmaZulu for keeping players in suspense on the issue of the percentage until closer to month end.
AmaZulu’s general manager, Lunga Sokhela, said in an interview with eNCA that procedural challenges could arise and that the club was seeking to mitigate these by “working around the clock with the finance team”.
This is in the wake of domestic football witnessing its first cases of PSL clubs opting for wage decreases.
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