Maritzburg United chairman Farook Kadodia believes many teams in the PSL would collapse without the sponsored monthly grant.
Like any other business, football clubs have been hit hard by the coronavirus pandemic that has forced shutdowns all around the country.
Many teams under the PSL's umbrella have been effected heavily, forcing some club bosses to implement salary cuts, and Kadodia says the reality is that financial support from the League to its 32 clubs plays a huge role in keeping teams running.
This grant is made up in part from sponsorhip income received from Absa, the title sponsor that has just ended their 13-year financial backing of the League.
Since last year Premiership clubs have been receiving R2-million on a monthly basis while GladAfrica Championship sides have been assisted with R500 000 per month.
"I must concede that 70 percent of the PSL teams cannot survive without the grant, and football would be doomed," Kadodia told the media.
"The reality is that the grant plays a pivotal role in every team. It would be impossible to sustain the clubs without the grant.
"It is quite a difficult situation, it is challenging for everyone in football or in general."
Kadodia said last week that he would never sell Maritzburg's PSL status and gave more details about how he has been making sure the Team of Choice survives the tough times.
"As Maritzburg United we have always operated on a shoestring budget and we cannot make any plans without a budget," he explained.
"Our plans have been halted. We hope we can get past this virus soon so we can be able to plan for the future."