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Sports

PSL Plans 18-Team Expansion – Why This Plan Could Sink the PSL Financially

By
Rethabile Nyelele
Published: 28 March 2025,
122 Views
4 Min Read
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PSL Plans 18-Team Expansion - Why This Plan Could Sink the PSL Financially
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Contents
  • Financial Burden on the PSL
  • Rising Operational Costs
  • Sponsorship and Stability Concerns
  • The 18-Team Dream: Financially Unfeasible

Recent reports have hinted that the Premier Soccer League (PSL) may consider expanding the league to 18 teams, a format last seen before Ria Stars and Free State Stars were liquidated, reducing the league to its current 16 teams. However, according to insights from Soccer Laduma and the Siya crew, this proposal faces significant financial and logistical challenges that make its implementation unlikely.

Financial Burden on the PSL

One of the biggest concerns regarding the move to 18 teams is the increased financial burden it would place on the PSL. Each team currently receives monthly grants, and with two more teams in the league, the cost of these grants would surge, significantly stretching the PSL’s finances. The PSL already faces struggles with fixture congestion due to three knockout competitions and the involvement of clubs in CAF tournaments, and adding more teams would only exacerbate this issue.

Rising Operational Costs

The addition of two more teams would also amplify the operational costs for the league. Club owners already face challenges with the high expenses of hosting matches, travel, and accommodation. Many clubs are struggling financially, leading to an increasing number of team owners opting to sell their franchises. The potential for more clubs to join the top flight may not necessarily lead to a more competitive league, but could further strain the financial sustainability of the clubs involved.

Sponsorship and Stability Concerns

Another major challenge would be the difficulty in securing sponsorships for additional clubs. Many PSL teams already face financial instability, and with the added pressure of more teams, this could worsen. Club chairpersons are frequently struggling to keep their clubs afloat, and with sponsorship deals hard to come by, the risk of clubs folding or selling their statuses would increase.

A source familiar with the matter stated, “I see people talking about an 18-team league. That thing is not going to happen. They need to call a Board of Governors meeting with all 32 members. It’s something that needs to be discussed and agreed upon.” This would also affect promotion and relegation, making the league even more complicated to manage.

Financial ImplicationCurrent Impact (16 Teams)Proposed Impact (18 Teams)
Monthly Grants per TeamR30 million per clubR60 million per club (estimated)
Total Grants Cost per MonthR480 millionR540 million
Match Hosting Costs (per team)R2 million per gameR2 million per game (x2 teams)
Travel and Accommodation CostsR500,000 per tripIncreased due to extra teams
Sponsorship and Revenue GenerationLimited in current structureEven harder to secure with more teams

The 18-Team Dream: Financially Unfeasible

While the idea of expanding the PSL to 18 teams has gained some traction, it is unlikely to happen due to the considerable financial and operational challenges involved. With the PSL already struggling to generate enough revenue, the additional cost of around R30 million per club would be unsustainable. The league must focus on ensuring the financial stability of its current clubs before considering any expansions.

Related article: Goal Machines: Undeniable PSL Top 5 All-Time Leading Scorers

TAGGED:African footballPSLPSL NewsSoccer
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