In the wake of TS Galaxy battling to pay salaries for the last two months, FARPost sought to establish the monthly cost of running a PSL club against the monthly grant from the Premier Soccer League.
Not too long ago, there were stories of non-payment at Swallows FC, suggesting a few other DStv Premiership clubs could be struggling to stay afloat.
Contrary to what some may think, running a Premiership football club in South Africa is neither glamorous nor a money-spinner.
Unsurprisingly, one or two football owners are looking to sell their clubs year after year.
In 2020, the football fraternity painfully witnessed the history of Bidvest Wits go down the drain just a year before it celebrated its 100th anniversary.
And then we saw Bloemfontein Celtic sold as the football-crazy community of Bloem lost its beloved club.
Several other clubs have been sold, like Highlands Park, Platinum Stars, Free State Stars, Mpumalanga Black Aces, and Thanda Royal Zulu.
In most cases, the owners cited the costs of running a club as the reason for selling.
BUT HOW MUCH IS THE PSL MONTHLY GRANT?
The monthly grant that PSL teams receive is R2.3 million, including VAT, which leaves it at about R2 million.
From the R2 million, the club needs to cover all its monthly expenses. Assuming they play four games in a month, two of them are away from home.
A Gauteng-based DStv Premiership club owner, who requested anonymity, revealed that when the team travels to play AmaZulu in Durban, the players and staff flights all come to R150 000.
“You then add accommodation and provide food for the team and staff. It will cost another R130 000 for the trip.
“There are also the costs involved in using a stadium when you host. It can come to R250000. Hiring a bus is an additional R10 000,” the official said.
That brings the cost of two away games to about R600 000. A home game would cost in the region of R400 000 with security, hospitality and medical services costs included.
That means, in a month with two home games and two away games, the club spends R1.4 million before salaries.
SALARIES CAN GOBBLE UP R2 MILLION
Of the 16 PSL clubs, only Kaizer Chiefs, Orlando Pirates, SuperSport United and Ajax Cape Town – have substantial sponsors.
Mamelodi Sundowns, who have enjoyed the most success, Sekhukhune United, AmaZulu and Royal AM are bankrolled by owners with financial muscle.
With estimates putting the monthly cost of running a club at between R3.5 million and R5 million, owners have to dig deeper into their pockets to supplement the R2 million monthly grant from the PSL.
NB: All credit goes to FarPost for making this analysis