The PSL's succession plan has once again come to the spotlight following reports that Chairman Dr. Irvin Khoza may not stand for the League's elections in November, and the logic behind sponsors' 'panic' has been explained.
Khoza has been at the helm of the PSL for five consecutive terms and there has always been concerns about whether the League has a succession plan in place to keep the PSL as the most valued League in Africa.
The value of PSL has increased exponentially since the Orlando Pirates supremo first assumed office in 2003.
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For the first time in 2019, the PSL reported a turnover of R1 billion, showing how valuable it has become under the chairmanship of the 'Iron Duke.
Now, multiple sponsors and stakeholders associated with the brand are said to be in a state of 'panic' about the news that the 76-year-old may not stand for the elections in November, according to a report by Sunday World.
According to the aforesaid publication, Khoza could consider stepping down and not make himself available for a sixth term as Chairman of the League, to pass over the baton and no longer be in the active running of the organization.
It remains to be seen if the PSL has a succession plan in place, but Sam Peter of Private Equity Investor explained the logic behind sponsors panicking, whenever the time comes for a founder or co-founder of a business to step down.
"It's a very expensive decision to not take of, if you have outside stakeholders in the business and if those stakeholders are not outside and do not understand which direction this business is going, they themselves need to de-risk themselves from this particular happening," Peter said on the 'Navigating succession' documentary published on Cash N Sport YouTube Channel.
"Because I may make the decision today and this person who is taking over might not necessarily have the same relationship with me and so he might not be able to deal with me in the way I'm comfortable with.
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"And the other element is if you have other investors sitting on the outside, he's looking at the situation and says, 'Look, if we were to invest in this company, it's a great asset, but we don't know who is going to run this business. "We don't know that when you take away the founder who is a secret source, etcetera, in driving the company to where it is today. How will the business perform going forward?
"So, this is an overlaying of uncertainty throughout the whole process and thinking and it's an absolutely critical and a very expensive decision to make. It creates a lot of turmoil and obviously brings risk into the business," he added.
SuperSport United's Stan Matthews, current PSL acting CEO Mato Madlala, also Chairperson of Golden Arrows, and Cape Town City chairman John Comitis are believed to have been earmarked as next in line should the time come for Khoza to pass over the baton.
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