MultiChoice’s decision to withdraw their headline sponsorship of the Premier Soccer League (PSL) has opened the door for the professional football body to follow sporting organisations around the world who have turned to the betting industry for financial backing.
This week’s announcement that the conglomerate has cut short DStv’s title sponsorship of the PSL a year before the contract ends has fuelled speculation that a betting company is waiting in the wings to fill the void.
The development, coupled with the fact that SuperSport holds broadcasting rights, sparked concerns that the league may be plunged into chaos, and the absence of a main backer may delay the start of the 2024-25 season from August to September.
Some are questioning the idea of financing by the betting sector, saying it could result in a crisis of integrity.
Reports say Betway is waiting in the wings to step in. A PSL source told the Sunday Times: “It looks like that’s what is going to happen, the wind is blowing in that direction. What is important is that we must replace DStv as a matter of urgency. We are keeping fingers crossed that the [PSL] chairman [Irvin Khoza] will get it over the line soon. We must hang in there for the next 10 days to see this through. The broadcasting rights deal is not affected and will continue.”
If Betway gets in, it would be a wonderful thing for them from a naming rights sponsorship point of view. South African soccer needs to capitalise our football on the betting markets.
— Jean Willers of Nielsen Sports
Sport industry expert Jean Willers of Nielsen Sports, shot down talk of a crisis in the making. Willers said the local game needed to capitalise on the boom in the betting market. “If Betway gets in, it would be a wonderful thing for them from a naming rights sponsorship point of view,” he said.
“South African soccer needs to capitalise our football on the betting markets. Betting brands have got money. All the football leagues around the world have capitalised on it, except in South Africa. It’s a cycle. Betting will last for a couple of years, the money is there, it would be an opportunity lost if South African football would not get on the bandwagon.
“Along with Hollywoodbets, they are the two strongest brands in South Africa. Cape Town City had Sportpesa a few years ago. Now [Kaizer] Chiefs and [Orlando] Pirates have SuperSportBet on their jersey sleeves.”
Lamontville Golden Arrows and the South African Football Association have 10 Bet on board. In the English Premier League, Brentford has a Hollywoodbets shirt sponsor. In Kenya, SportPesa is the title sponsor of their Premier League. It also finances two teams: AFC Leopards and Gor Mahia, as well as the Football Kenya Federation.
“Assuming there’s a finalisation of a potential Betway deal, and how that is going to be launched, it probably gave MultiChoice a chance to say we would be happy to end our sponsorship early. From a commercial point of view, MultiChoice don’t have to be the naming rights partner,” said Willers.
“They’ll continue with the broadcasting [of matches]. They are heavily invested in carrying the sport behind the scenes and on the screens. Between rugby, football, netball and cricket, there are not many sports in this country that they don’t have a say in, whether as investors, supporters, broadcasters, financiers or at board level, they are around the table.”
Willers dismissed suggestions that a potential entry of a betting corporation as the main backer would compromise the integrity of the league. “Football is the number one sport in South Africa, Africa and the world. The rules and regulations around betting on a global stage are not going to change, some people are going to bribe. But how many years ago since the Hansie Cronje saga in cricket happened and there was betting then. It would be a massive positive for the PSL, the positives outweigh any negatives,” he said.
A new sponsor, said Willers, would probably pay the R150m per season. “It will surely be north of R100m a season, probably more or less the same as what Absa and DStv paid.”
Another industry expert said the betting industry was currently the dominant player in the global football space.
“With most bets pointing at Betway as the potential new sponsor, the PSL will be making a belated entry into that market. In the past you had cigarette, alcohol, telecommunications and banks. Betting is the latest money spinner in sports sponsorship. It’s the industry that is spending in sport now,” the expert said.
“Down the line, we may start to see crypto currency next. It is still early days but people are putting their toes in. Already there’s Crypto.com all over Formula One, in America they’re in the NBA. That’s my prediction of what is next.”
He said DStv may have stepped in in 2020 as a stop gap backer while the PSL was looking for new long-term backers when Absa exited. “It’s not unusual for sponsors to do that. It happened in cricket when Castle Lager wanted to get out of the Proteas shirt sponsorship. CSA [Cricket South Africa] asked them to stay another year. When Absa left SA Rugby, Blue Label was not a long-term sponsor but assisted SA Rugby to stabilise the boat before MTN came in.”
Willers said MultiChoice as a business has been under pressure over the past couple of years. “When Absa pulled out as the PSL’s main sponsor, MultiChoice, who were handling broadcasting rights and had SuperSport United, became the headline sponsor through DStv. That’s hundreds of millions of rands that they were putting into football,” he said.
“From a sponsorship point of view, there always existed a possibility that if there could be another potential party to take over the title sponsorship, that they will pull out. There is potentially another party on the horizon that can become the headline act.”
The PSL source said DStv’s exit will not have a domino effect on the Diski Development Challenge.
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