The expansion of Premier Soccer League: the implication for football growth

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By Mahlomola Martin Lefupana

 
Sports, particularly football, has acquired the biggest currency in culture, politics, commercialization, marketing and entertainment in South Africa. The sports of football has in the last ten years or so cemented its status as the biggest commodity in South Africa in terms of participation, TV reach and revenue generation.  
 

 In the recent past, the idea of expanding Premier Soccer League (PSL) to have more teams has been widely discussed by football fans, pundits and media. The discussion around the expansion is always met with mixed reaction. Many have argued that with more than 57 million people in South Africa, the growth of PSL in the last ten years, the need for development and growth of the game, the idea of expansion from the existing sixteen in both the PSL and National First Division (NFD) is long overdue.  

While the concept seem exciting on paper, there are real questions that needs to be asked: why the need for expansion of teams and what is the business implication of the idea to the PSL?
 
I analyze the need for expansion and the business implication on the PSL and football as a whole.  
 
The PSL previously had 18 teams before the 2002 / 2003 season, had to cut two teams to 16 because of financial difficulties. The PSL offered Ria Stars and Free State Stars a package of 8 million as teams that accepted to be cut-off from the league.  
 
The need for expansion of the PSL
 
Football is the most supported sport in South Africa and the PSL is Africa’s biggest league by revenue. The initial reasons for cutting teams from 18 to 16 was based on the financial difficulties, now, the PSL is regarded as one of the richest league in the world, with a five year broadcasting rights of more than R2 billion. This makes the PSL easily the most prestigious league in Africa, thus a good investment for business and great for football in South Africa. 
 
The broadcast rights has made the football in South Africa very accessible with fans able to watch more than 200 matches on both Supersport and South African Broadcast Corporation (SABC). This has maximized the viewership, increased revenue from marketing and created thousands of jobs directly and indirectly in other sectors such as marketing, communications, telecoms, food and beverage, tourism, etc. The expansion of more team is likely to increase competition, thus the winner will need to beat more teams to a title.  

 

 
The other call for expansion is based on the social and development factor: the league will be developing sports of football, as it has done with the Multi-Choice Diski Challenge. The expansion is likely to spread the game across the country, with more people having the opportunity to access the professional game in different areas. The expansion of teams is also based on the population dynamics; South Africa has more than 57 million people and having only 32 teams at professional level seem not proportional to the population of the country.
 
How should it work? 
 
The current structure of the PSL is such that one team automatically get relegated for finishing 16thon the log, while 15thplaced team play with 2nd and 3rd placed teams from the NFD for a slot in the PSL. I posit the following feasible solutions: to make available new franchises to interest bidders; not to relegate a team in a particular season and promote two or four directly from the NFD clubs. The PSL can also open up to the idea of having one slot for a foreign club from either Botswana, Lesotho, or Swaziland. This would open up the PSL for expansion, brand positioning and regional reach. While these models are interesting, the PSL can look into other different models for the benefit and growth of the game. 
 
For such idea to work in the best interest of the league and its stakeholders, it requires time and attention. Whether the PSL sees the value of this idea, there has to be several consultation amongst its club members, executives, South African Football Association (SAFA), supporters, partners and sponsors. While the idea seem good, a long-term approach to this is key for its success. 
 
The broadcast and sponsorship deals 
 
The PSL has entered into long term sponsorship and broadcasting agreements with Supersport International, ABSA, Nedbank, MTN, and Telkom, which will require review, if the league were to be expanded into 18 or 20 teams. The TV rights has been subject of much public interest with Supersport and SABC registering growth in audience in the last 10 years. While, the proposed regulation from Independent Communications Authority of South Africa (ICASA) are threatening the revenue stream of the PSL, the advent of digital streaming provide opportunity to explore different options in broadcasting in football. With added teams, the reach will be more, and even more so if broadcasting is expanded to include online streaming, this will also mean no one is priced out or left out. 
 
The fans
 
The PSL can strategically decides to accept bidding from areas or provinces with no PSL side, neighboring countries for expansion purposes. For example, Northern Cape, Mpumalanga, North West provinces or Lesotho, Botswana and Swaziland can be targeted, in this way, the PSL will have country and regional reach, contribution to local economy and appreciation from fans. The fans from these areas will look forward to welcoming big teams such as Kaizer Chiefs, Orlando Pirates and Mamelodi Sundowns and would certainly grow the game.
The expansion by the PSL will be acting on the interest of football, thus it will not only be financially based, but opening access for millions to participate in the beautiful game. Many in South Africa view football as their number one sport, a way of life and more importantly as a fabric for building inclusive society. Football is at the center of people’s emotion and lots of fans feel attached to the game. The expansion will create more benefits for the game and is strategically correct to do so. The expansion of more teams will add to the soul of the game in other parts of the country.  
 
Photo: Getty Images 
 
 

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