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PSL clubs hard hit by ground rentals

by Ricky Zililo
13 May 2016 at 06:52hrs | Views
FAILURE to abide by Fifa Club Licensing requirements is costing Castle Lager Premier Soccer League clubs revenue generated from stadium advertising. The majority of topflight clubs do not own stadiums and rely on hiring the facilities from local authorities, which also benefit pitch side advertising.

In other leagues, clubs generate substantial amounts from stadium advertising, something Zimbabwean teams can only dream of.

Highlanders complained that the Bulawayo City Council (BCC) was bleeding clubs through high ground rentals, while at the same time depriving them of a share from stadium advertising.

Highlanders' chief executive officer Ndumiso Gumede questioned the sincerity of BCC. "Council takes a huge chunk from gate takings. Twenty percent from the gross is too much and at this rate we're in danger of becoming history as we're sinking financially.

"To make matters worse, over and above the 20 percent which council takes, they also pocket money from touchline adverts, which in some countries belong to clubs.

"Truly if service providers like council are double-dipping, how are we going to survive?" Gumede said. He said it was a pity that revenue generated from gate takings isn't able to sustain the club's operations.

However, responding to Bosso's concerns, PSL chief executive officer Kennedy Ndebele said only teams that adhere to Fifa Club Licensing can reap rewards.

"Infrastructure is one of the critical areas of Club Licensing and that is why there is an emphasis for clubs to enter into lease agreements with local authorities so that they address issues to do with stadium or advertising rights. If you have a lease, you're able to spell out your requirements," said Ndebele.

Bosso have played two home games this season against FC Platinum in Week Two and Chapungu last Sunday. From the FC Platinum match, Highlanders grossed $23,996 and remained with $10,000 after paying service providers.

Council pocketed $4,799 as its 20 percent share, while Zifa and the Sports and Recreation Commission (SRC) each got $1,400 as part of the six percent levy they collect at every match. The PSL's share was $1,600.

Against Chapungu, the Bulawayo giants went home with $5,257 from a gross of $15,634. BCC took $3,000 and service providers that include Zifa, PSL, SRC and the police shared the rest. Gumede said the money they banked from the Chapungu match was not enough to cover costs to prepare for the match and pay players' winning bonuses.

"We need about $2,000 for camping, ground rentals for training purposes and other pre-match related costs. For winning bonuses, we pay about $4,000 and if we're losing so much revenue through levies and stadium hire, then we won't survive. We will soon be history," Gumede said.

Source - chronicle
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