Following a new Premiership sponsor, in Betway, which has come on board with a sponsorship worth R900 million over three years, KickOff investigates how the deal affects clubs' monthly grants and how it compares to the TV rights deal with SuperSport.
There is currently intrigue on whether the grant money for PSL clubs would increase automatically, after a landmark sponsorship deal with Betway.
Elite division clubs are receiving approximately R2,5 million per month, while National First Division outfits get around R500, 000 each month.
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In spite of the lucrative deal, PSL Chairman Dr. Irvin Khoza shot down suggestions that the grant money for clubs would automatically go up.
"That's the privilege of the clubs. We don't talk about money, because if we do talk about money without the clubs knowing, 'The signing-on fee of this agent, I want a signing-on fee. The chairman told us there's gonna be money coming in'," Khoza said at the press conference on Wednesday.
"The money of the grant is a privilege. We're going into the AGM in November, we could discuss it, but I don't think so. They must go fend for themselves and get sponsors for themselves.
"They've got a kick-start of the grants, of over R30 million a year. No [guarantee] is given of a return on investment. They are just coming in, you get a cheque of R30 million, because we want a quality PSL," he added.
"If you're a chairman, come and show us how you can be a chairman, because now there's no money in the bank. You must go get the money, it is your turn."
This publication understands that grants are allocated in proportion to the revenue the League generates.
The PSL's last increase in the grant money came after they made a record revenue of R1 billion in 2019, thanks to a host of sponsors, in SuperSport, Absa, Nedbank, Telkom, MTN, MultiChoice and GladAfrica.
The League used to generate most of its revenue from the broadcasting agreement they have with SuperSport, a subsidiary of MultiChoice, which was worth R2,2 billion from its previous extension in 2019 for five seasons.
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Betway coming on board with a sponsorship of just under R1 billion for three years, significantly higher than what MultiChoice paid to sponsor the League, means they have become the biggest sponsor, at least until a new TV broadcasting deal is announced.
KickOff understands that the League would have to balance their books after a financial year cycle to justify increases in monthly grants, not necessarily after a new sponsor is announced.