The Premier Soccer League (PSL) has no way of ensuring that new club owners entering SA's professional football business by buying financially struggling clubs are thoroughly vetted, the league's chair Irvin Khoza has told the Sunday Times.
The financial standing of those buying PSL clubs came into sharp focus this week when Lawrence Mulaudzi, who purchased the status of 99-year-old Bidvest Wits in September last year, sold Tshakhuma Tsha Madzivhandila (TTM) for R40m to fellow Limpopo businessman Abram Sello.
This was four months after Mulaudzi, whose businesses have been consistently reported to be in trouble, had taken TTM to the top flight of SA football after buying the Wits status for a reported R50m last year.
That's the main requirement
"Our main considerations when we do the assessment (of potential club buyers) is to ensure that the issues of players (of the team being sold) are taken care of," Khoza explained after the PSL's executive committee rubber-stamped Sello's entry into the apex league this week.
"When we approved the sale (of TTM this week) there was a commitment from the new owner that whatever liabilities are there, they are going to take them over.
"Whatever disputes the club has with the league's dispute resolution chamber and whatever outstanding monies are owed to players, the buyer (Sello) says 'we're going to take over', which is commendable.
"As the PSL, we make sure that part of the sale is taken care of because that's the main requirement in finalising transfer of ownership. We have to make sure the interests of the players are protected."
Khoza added that the PSL can't guarantee, however, that the new owner, a pharmacist based in Gauteng, won't have the same problems Mulaudzi had in running TTM, who were bottom of the Premiership after winning one DStv Premiership match in 13 before their away fixture at Bloemfontein Celtic yesterday.
"What guarantees do we have really?" asked Khoza. "There are no guarantees nowadays because there might be things happening every day, things we have no control over. Things are happening so fast these days, we can't even predict anything.
"TTM is not moving from where they're now. They'll remain in Thohoyandou and there's no change of the club's name for now.
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"We're not happy to adjudicate on these things, but the way things are (with the economy), I struggle to think what will happen in the future if two or three clubs are affected at the same time and there are no takers.
"What must we do as the league? It means we must suffer the consequences because we've failed to comply with what we promised to our sponsors. Owners always give us an assurance that they'll have enough money to sustain their clubs."
Mulaudzi might have failed to last in the money-spinning PSL, but not every new owner is regretting getting involved with professional football in SA.
Swallows FC chair David Mogashoa paid R8.5m to buy Maccabi FC in the National First Division in August 2019. The Dube Birds are flying high in the Premiership after promotion from the GladAfrica Championship.
"Everything has to do with timing," Mogashoa said of his entry into SA football. "There's absolutely nothing wrong with buying a club as long as your planning is right and you can afford the running costs.
"You can't depend on the grant (R2.5m a month in the top division) because that's nothing. We paid R8.5m to buy Maccabi and Swallows is now valued at about R80m.
"I'm in for the long haul but winners know when to quit. There will be a time when I'll be quitting."
The owners of the now defunct Thanda Royal Zulu, which was reported to have been sold for R42m to AmaZulu FC in July 2017, are among the few that are thought to have made a buck in club sales in 25 years of PSL football.
Thanda sold their status to Patrick Sokhela, who recently sold the Durban club to businessman Sandile Zungu.
Attempts to speak to TTM's new owner Sello were unsuccessful.
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