Chippa hands over management
Financial woes force outsourcing
CASH-STRAPPED and mismanaged Chippa United have drawn on the expertise of Nelson Mandela Bay’s stadium operators in a desperate bid to get their house in order.
Access Management, headed by former SA Rugby managing directors Rian Oberholzer and Songezo Nayo, will now be directing the administration of the Premier Soccer League outfit, it was confirmed yesterday.
They will take over the day to day running of club with Siviwe “Chippa” Mpengesi remaining as owner and chairman.
The club has denied that personnel cuts are imminent but many of Mpengesi’s staff are likely to be laid off in time as the belt is tightened.
The financial problems come after the former Cape Town club signed a R36-million three-year deal with the Nelson Mandela Bay Municipality (NMBM) to relocate the side to Port Elizabeth.
Chippa’s chief operating officer Lukhanyo Mzinzi confirmed yesterday that Access Management had come on board.
“They will assist us with management on the marketing, finance and administration side as well as the day-to-day running of the club.
“It’s just that we need more capacity and we want to build a strong brand as we are targeting to be among the top six clubs in the country,” Mzinzi said.
He added that more changes are yet to unfold within the club but that these changes would only be effective from next season.
“You will probably see changes but as for now we are keeping things as they are until the end of the season.”
Mzinzi confirmed the club was struggling with cash-flow problems but added that this is a common problem in South African soccer.
“There are many PSL clubs in the same boat. It’s a very expensive operation to run. But I wouldn’t say that our problems are too bad. Yes, there are challenges both administratively and financially.
“Having Access Management on board is part of trying to deal with the problem and to make sure that the little that we have is managed better.”
Officials and players have confirmed that they are owed wages and/or signing on fees going back several months despite Chippa’s inducement of a healthy grant from the NMBM.
“When you talk about players’ problems, sometimes it is an obligation like their signing on fees. But almost all of them have been sorted now.
“Players have left the club at certain times and then there is a misunderstanding between the former club and a player’s new club as to who has to pay the clearance. So those are just the small things that we are trying to change.”
Access Management will now step in to help over an initial three months period while the club fights against potential relegation after 11 league matches without a win.
The management company already have the contract to run the stadium, which is also home to the Southern Kings, who will be returning to Super Rugby next season.
“We will be assisting only with the operational side of the club on a day-to-day basis,” confirmed Access chief executive officer Chantal du Pisani yesterday.
“We will not be involved in soccer matters but instead looking at the legal, financial and administrative control and things that may have been neglected.
“Chippa is a club with a good story to tell. We will be applying big business principles and we already have had good buy-in from the PSL. We are going to forge ahead as best we can,” she said.
Access Facilities and Leisure Management’s contract to manage the stadium stipulates that they must have a PSL team as a tenant and so they have a vested interest in helping Chippa.