Dropping down a league means a big drop in income

May 13, 2009

Daily News

Very well done to Jomo Cosmos on their quick return to the PSL having no doubt spent a daunting season in the second tier.

I say well done because it is very easy to get mired in the obscurity of the lower divisions for more than one season as Black Leopards can testify. Anyway, I caught one of Cosmos’ last matches of the season and I was reminded of the negative business consequences of dropping down a division. Gone was their Bonnitas shirt advertising – their shirts were frighteningly blank.

Gone too were the big-name players from their time in the PSL. Instead they fielded unknown youngsters – no doubt with great potential – blended with golden oldies like Tico-Tico Bucuane. Besides the loss of the very generous PSL grants and lucrative TV income and big paydays against the big PSL clubs like Pirates, Sundowns and Celtics, Jomo Cosmos had to also make -do with second tier Arenas like the Charles Mopeli Stadium. Magnificent arenas such as Coca-Cola Park were simply are simply not viable in the lower divisions.

This sojourn by Cosmos in the lower league has been a financial step backwards in every respect. Not only does it negatively impact the club financially as well, the players also face a cut in wages and reduction in win-bonuses. But at least Cosmos are back but they will have to start from scratch. They will have to adopt a business and sporting model that allows them to compete and retain their newly re-acquired PSL status.

The business impact of relegation is evident when you see the uncertainty surrounding the just relegated Bay United. There is an appal by the Eastern Cape authorities to try and keep the franchise in the Nelson Mandela Bay area and to hopefully retain the local VW sponsorship. That’s why I say enough respect to Cosmos for having survived two relegations and their ability to bounce back immediately.

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