Is the PSL economic model in danger?

At a press conference immediately after a Board of Governors caucus, the PSL supremo, Irvin Khoza, boldly declared that the League would have to shut down without adequate funding – which would render it amateur! The PSL Chairman laid bare the challenges domestic football faces if 80% of its revenue ceases to exist, the League’s funding model being threatened by the proposed amendments by the Independent Communications of SA (ICASA). “This threat could lead to our ex- tinction. A self-funded league that is recognised as one of the top leagues in the world. It is through selling content to the broadcaster that the PSL pays grants to participating clubs on an equal basis, to afford the league to be professional,” Khoza explained, adding, “Our entire funding model is being destroyed thoughtlessly and deliberately.” This was in response to ICASA wanting to amend the sports broadcasting regulations so that the PSL is more accessible to the public, while the Chairman admits that ICASA’s intention is a threat to the League. However, as much as ICASA is a huge threat to the PSL, there is possibly an ever bigger threat although no one talking about it… yet! The TV rights deal accounts for 80% of a PSL club’s revenue, and the question that needs to be asked is if the League is too reliant on the broadcaster. Will SuperSport continue to fund the league with multibillion-rand deals, or will economic pressure change the framework? The changing landscape of football viewership is rapidly adapting to the digital world we are living in – will SuperSport and the League reshape their model? Whether the PSL like it or not, in future the demand and supply will drive the sponsorship deals, specifically the TV broadcasting, but will the dwindling stadium attendances and growing access to top-class world football at the press of a button play a part?