In a letter to staff seen by the Siya crew, a Premier Soccer League club has confirmed it cannot guarantee full salaries at the end of this month.
The effects of the Coronavirus pandemic on the economy all over the world has been extremely harsh, and it was always expected that top-flight teams would be vulnerable sooner rather than later when the 2019/20 season was halted sometime in March.
AmaZulu have now announced pending wage cuts after initially warning it’s employees, including players, of looming financial challenges in a letter sent earlier.
“In our industry, we have not been given any direction by the PSL regarding the re-opening of the season. The impact of COVID-19 has unfortunately severely affect us,” read the communiqué signed by general manager, Lunga Sokhela.
“I did make it clear in the last letter, that even though the club receives the PSL grant and has Spar as a sponsor, it still relies on other income streams and significant contribution from the owners of the club whose businesses have been severely affected by COVID-19.”
The league’s grant to Absa Premiership clubs is R2-million per month over the course of the season, and – as things stand – it is still being paid out.
Sokhela said AmaZulu have now applied to the “Temporary Employer/Employee Relief Scheme (TERS) for assistance with unpaid leave,” and added that “this, if successful, will payout between R3 500 and R6 700 per employee.”
Usuthu will also be “applying for UIF benefits where applicable”.
The club boss then delivers the killer blow that if the virus is not contained soon and football does not resume, this will be the new normal.
“For the end of this month I can confirm that the company cannot pay salaries in full. Every effort has been made by the relevant parties to avoid this but unfortunately, they have not yielded positive results. We will advise by Wednesday, 22 April the effects this will have on your salaries,” the letter stated.
Story by @superjourno