Chippa United chairman Siviwe Mpengesi is worried the prolonged suspension of football due to the coronavirus outbreak could badly hurt Premier Soccer League (PSL) clubs’ finances.
With football in South Africa on a halt since mid-March, clubs will pay their players' April salaries without any games played, while it is uncertain when the action would continue.
The lockdown period in South Africa was recently extended and the resumption of the current season might also take longer.
Mpengesi attempted to debunk the notion PSL monthly grants are enough to cover salary costs incurred by clubs that are not financially sound like Kaizer Chiefs, Orlando Pirates and Mamelodi Sundowns.
“If the coronavirus takes longer, clubs will lose sponsors. That means many clubs will struggle to pay the salaries of players,” said Mpengesi as per Daily Sun.
“You know players’ salaries are high and they are not catered for by the money we receive from the PSL. There will be nothing in return for sponsors, and they will have no choice but cut their ties [with clubs].”
Mpengesi said they have never taken the money obtained from gate-takings as a dependable revenue stream which can cater for crisis periods.
“Fortunately, most of the clubs don’t rely on gate takings,” Mpengesi said.
“I think the way Dr [Irvin] Khoza [league chairman] designed the PSL, means clubs don’t have to rely on gate takings. You find clubs are not making money out of gate takings. The R40 [per game] that is paid by fans doesn’t make any difference.”
Chippa United rarely have their Nelson Mandela Bay Stadium home half-filled even when hosting traditional giants.