What are the facts?

Cape Town City’s existing sponsorship agreement with the FirstRand Group stems from 2021. In August last year, City announced Direct Axis as a title sponsor, who are in the finance industry. Both FNB and Direct Axis are subsidiaries of the group.

In addition, according to an insider at the club, City declared FNB as a secondary sponsor to the League last year and subsequently received the green light from the PSL, thus allowing City to brand the FNB advertising boards for home games. But charges had been leveled against City. According to PSL Prosecutor Zola Majavu, City were charged for failure to obtain prior approval from the PSL Executive Committee in accordance with the compliance manual prior to the conclusion of a new ornamented sponsorship agreement with FNB.

“In accordance with the rules, they (City) ought to have sought approval prior to concluding the agreement. In this instance, the allegations against them are that they did it the other way around – they concluded the agreement and once that agreement was concluded and effective, only then did they decide approach the Executive Committee of the League for approval a few days later,” Majavu said in a statement.

According to the NSL handbook, this goes against the rules, which state: 17.8. Teams may wear the advertising of their Member Club sponsor subject to the following conditions: – 17.8.1. Such sponsor will not be in conflict with the sponsor of the League or other official suppliers of the League without prior written permission of the League, which will not be unreasonably withheld; 17.8.2. Such sponsor’s advertising will not be considered to bring the League or its sponsors into disrepute or be against public policy

On Monday, August 22, PSL prosecutor Majavu confirmed the Citizens appeared before the DC on and pleaded not guilty to the charge. However, after arguments were heard, they were convicted accordingly.

“They were further sanctioned a monetary amount of R50 000, half of which is suspended for a period of 24 months on condition that during the period of suspension, they are not found guilty of the same offence,” Majavu said via the PSL media department.

Last year, PSL Chairman Dr Irvin Khoza, in a press briefing, urged teams to not only rely on the monthly grants received from the League but rather seek sponsorships that would bankroll their clubs, and in so doing, protect the integrity of the League and maintain the product as one of the best on the African continent. However, the current rules in the NSL handbook are seemingly creating certain challenges. The industry expert has suggested to revisit the rules. But is that a viable option with existing PSL contracts already in place? There is no doubt that clubs need to generate income in a difficult economic climate, and the way forward could very well be a workshop where member clubs engage with the PSL Executive Committee.