In light of the scourge of PSL clubs being unable to pay players their salaries, with Royal AM the latest, a sports lawyer has suggested solutions to the NSL.
It was only a year ago when Moroka Swallows players had a strike in December 2023 over unpaid salaries, which led to the club not honouring two matches - against Mamelodi Sundowns and Golden Arrows - and they faced suspension or expulsion from the League as one of the possible sanctions.
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However, after mitigating circumstances submitted by Swallows, who pleaded guilty, the PSL DC only sanctioned them a R1 million fine, with R600 000 suspended for 24 months, while also forfeiting six points (three points each handed to Sundowns and Arrows).
The Dube Birds eventually sold their status to Marumo Gallants at the end of 2023/24, as they could no longer sustain the club financially.
The same scenario has unfolded at Royal AM, where the players have been on strike action after their December salaries were not paid.
What makes matters worse is that the KwaZulu-Natal side are under curatorship from SARS, following a raid made on the assets of businesswoman and owner Shauwn Mkhize for allegedly owing R40 million in taxes.
Sports lawyer Tyrel Singh believes the NSL should form an emergency compensation insurance fund to safeguard players against such unforeseen instances.
"To protect players from the financial fallout of club mismanagement, an emergency compensation insurance fund should be established," Singh wrote exclusively to KickOff.com.
"This fund would act as a contingency measure, ensuring that players receive their salaries on time, regardless of the club's financial status.
"Contributions to this fund should be mandated as part of the licensing requirements for NSL member clubs."
Singh also stressed the importance of stricter oversight and compliance.
"There must be more stringent oversight from the NSL over their member clubs. Clubs should not be permitted to enter into agreements and employment contracts they cannot fulfil.
"To enforce this, financial audits should be conducted regularly, and clubs must demonstrate their ability to meet financial obligations before being allowed to compete."
Singh also suggested a points deduction mechanism as a deterrent.
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"To curb financial mismanagement, the NSL handbook should introduce punitive measures such as point deductions for member clubs that fail to comply with their financial obligations. This would serve as a powerful deterrent, compelling clubs to prioritize financial stability and contractual compliance," Singh says.
According to reports, Royal AM players have since been paid and will resume training on Monday.
Singh is a qualified Sports Mediator and Executive committee member of the SA Sports Law Association.