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The kind of rubbish you expect from the PSL

02 November 2007 | Talked About Features | The Stage | Gareth Stokes

The Premier Soccer League (PSL) has featured prominently in the media of late. And the public has seen two sides of the organisation. The good side announced a record R1.6 billion broadcast rights 'deal' concluded with SuperSport and a massive R500 millio

Rumours surfaced that the PSL would reward board members who negotiated sponsorship deals with commission for their troubles. The possibility was fist discussed after the television sponsorship announcement, when R30 million was set aside for this purpose. Subsequently we heard that sponsorship committee members (including PSL chief executive, Irvin Khoza; former CEO Trevor Phillips; Kaizer Chief’s chairperson, Kaizer Motaung; Golden Arrows director, Mato Madlala; and consultant, Peter Mancer) were in line for 10% of the Absa deal – a possible R50 million windfall.

Rumours surfaced that the PSL would reward board members who negotiated sponsorship deals with commission for their troubles. The possibility was fist discussed after the television sponsorship announcement, when R30 million was set aside for this purpose. Subsequently we heard that sponsorship committee members (including PSL chief executive, Irvin Khoza; former CEO Trevor Phillips; Kaizer Chief's chairperson, Kaizer Motaung; Golden Arrows director, Mato Madlala; and consultant, Peter Mancer) were in line for 10% of the Absa deal a possible R50 million windfall.

The public, corporate sponsors and government were equally shocked by this disclosure, with news of the arrangement prompting finance minister Trevor Manuel to comment on the matter. He slammed the commission rumours as "morally reprehensible and corrupt." Manuel voiced his concerns in an open letter to Absa CEO, Steve Booysen. "My understanding is that individuals are elected onto the leagues various committees to serve the interests of the sport, not in the expectation of acquiring personal fortunes to the detriment of the organisation they are representing," wrote Manuel.

Call a spade a spade

South African sport administrators have an amazing ability to squeeze out of tight spots. The latest news is that Khoza and other members on the sponsorship committee have survived the negative press and public opinion still clutching the majority of the loot from their plunder. The entire saga has been a bit like watching a child left alone in a room full of chocolate after being told: "Don't eat anything!"

The PSL rubber stamped a payment of R70 million to its members right under the eyes of a disappointed South African public and despite Manuel's stern censure. How did they accomplish this? They simply employed an ingenious re-branding strategy! Khoza told the media the payment is not for commission; but rather a "token of gratitude". It will be a one-off payment made from 'all' sponsorships secured for the PSL. We guess if you ever run into a similar moral dilemma, the obvious solution is to re-brand you transgression too. ..

By calling the payment to the three key negotiators and other role-players a "token of appreciation" Khoza is able to bravely state: "no executive committee member will be entitled to commission". We hope SARS has taken note of recent developments and added a "token of appreciation" income code for future beneficiaries of this remuneration category.

It's over when I say it is

It appears South Africa is destined to struggle with sports administration for years to come. Players in the country's various sporting codes face far more pressures than their global competitors. They have to overcome financial constraints, quotas, political meddling and the egos of the various administrative bodies before focussing on what really counts performance.

The PSL commission debacle is another in a long line of farcical events that have played out in our sporting arena. But what really amazes FAnews Online is the sheer hypocrisy in the situation. How can Khoza on the one hand say: "The [PSL] constitution is very clear in saying that the enrichment of individuals is not permitted," while in the same breath authorising a R70 million payment to already well remunerated individuals?

And what makes Khoza believe that the PSL decision earlier this week is the final word on the issue. We hope his statement: "I am happy we have resolved the matter, and now we can concentrate on football, proves premature and that some form of sanction follows. In our book the PSL has not resolved the issue at all. They have paid out millions of rand as a reward to administrators who are simply doing their jobs.

Editor's thoughts:
A number of journalists have recently suggested that the R70 million 'commission' is reasonable because it is so much less than the R210 million initially proposed. What a brilliant 'smoke and mirrors' deception by the PSL. It is not the amount of the payment that should concern us; but the principle involved. Should members of sporting bodies acting in the interest of national sport codes be allowed to receive commissions for negotiating deals? Send your comments to
gareth@fanews.co.za


 

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