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PSL’s Changing Landscape Affecting Club’s Multi-Million Price Tags?

In issue 1109 of Soccer Laduma, the Siya crew – following the proposed amendments by the Independent Communications Authority of SA (Icasa) – dug deep to investigate the PSL economic model, which is largely funded by the TV rights deal between the league and SuperSport.

Clubs receive around R30-million per annum from this partnership – and for many, it has been their saving grace.

It’s 80 % of the PSL’s revenue and should it be done away with, chairman Irvin Khoza said the league would have to shut down. 

The league is being forced to adapt to the changing landscape of sport viewership, even if the regulations are not passed. Digital disruption is a factor in the future of the sports industry for both the broadcaster and rights holders, an industry expert told the Siya crew. 

The surge and opportunity in streaming are much bigger than any sponsorship deal, potentially.  

Read: Motsepe's Downs Keeps The PSL Market Alive 

Are these challenges and changes affecting the worth of a PSL franchise or status?

Siya sources have informed the crew that value of a club in the elite division is usually around R60-million, at least. But this really depends on the offer on the table and the reasons why the team is being sold. Platinum Stars were sold for a lowly R22-million, with the owners admitting that holding on to the team was proving a liability.  

Read: Three PSL Fixtures Moved

But in 2017, owners of Thanda Royal Zulu pocketed significantly more for selling the status of the club to AmaZulu, who were desperate to return to top-flight football – R60-million was the figure. Free State Stars had asked for R65-million the previous year in a potential deal that eventually collapsed.

The cost of a PSL club remains a pertinent question given that Bloemfontein Celtic are still on the market for a willing buyer as owner Max Tshabalala’s financial woes are on the increase. The changing landscape will also have a say in whether the value increases or depreciates.

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