Big Stan: PSL not safe from job losses

Premiership

Even the most established PSL clubs will have to cut players' jobs or salaries if the football shutdown continues indefinitely, says Stan Matthews.

Coronavirus has hit the global economy and the football industry very hard and there is no certainty that leagues around the world will be finished despite a strong push to complete competitions for financial reasons.

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Clubs in Europe are asking players and staff to take wage cuts, but the problem is that by reducing their players' salaries, clubs could be opening a can of worms.

Reducing salaries would mean players should be allowed to terminate their employment for free without clubs asking for a transfer fee if they choose to leave.

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Every season many PSL clubs spend more than they have in the transfer market in the hope of getting that money back from future player sales and the television deals.

But if any of that dries up in the future, there is only the R1-million monthly grant from the League to keep clubs afloat.

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It is also reasonable to assume that, as a business, the PSL is unlikely to keep shilling out millions every month to clubs that are no longer actively producing a product that can be sold.

Asked if salary reductions would work in South Africa, PSL Executive Committee member Stan Matthews says clubs might not have a choice.

"If there is no money, there is no money," the SuperSport United CEO tells KickOff.com.

"Everywhere in the world, if there are only expenses and not enough income, how can we survive without cuts or job losses?

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"South Africa is not immune to what is happening around the world and here too, in other industries also... and that means salary cuts, job losses or bankrupt clubs.

"Let's see where all this goes. It doesn't help to speculate all the time about stuff that hasn't happened yet. Let's deal with issues when they are upon us."

PSL acting CEO Mato Madlala recently told this website that the governing body has not yet discussed the possibility of salary cuts.

READ: PSL vague on potential salary cuts

Meanwhile, the local football season's resumption has been pushed back to May at the earliest after President Cyril Ramaphosa extended South Africa's lockdown to the end of April.

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