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Rockets boss shares his thoughts on how much PSL’s three big guns are worth
TS Galaxy owner Tim Sukazi believes South African giants Mamelodi Sundowns, Kaizer Chiefs and Orlando Pirates are worth R1 billion as he analyzes how much he had to pay to buy Highlands Park.
The former Nedbank Cup champions are set to campaign in the Premier Soccer League (PSL) next season and the former player representative says there is no chance you can buy the three giants for less than a billion.
Sukazi explores what determines the selling price between seller and buyer, after he reportedly secured his first club in South Africa’s top flight for a whopping R60 million.
“If you’re talking about Kaizer Chiefs or Orlando Pirates or Mamelodi Sundowns, then you’re talking about something else, maybe even R1 billion,” Sukazi told the South African Association of Football Journalists (Safja).
“There is no possibility that you can buy Chiefs for less than a billion rand. You have to look at what’s in the club.
“They are sponsored by Vodacom and maybe they will spend R75 million or R80 million, just. Then there is Toyota and the rest of the sponsors.
“It is a well decorated club from a sponsorship perspective, which has a monetary value. Their sponsorships would be around 150 million rand more or less. “
Meanwhile, the experienced lawyer also explained the reasons for his massive evaluation, saying that player values have an impact on the price of a club.
“There are other things like the values of the players and good will. The club has a rich history and that will count in the pricing model, ”he added.
“The price of a soccer franchise depends on the willing buyer and seller model. However, there is a ball court. A professional soccer status at the highest level of the game should cost in the region of R60 million or roughly.
“And how do you get to that price? … the PSL grants that come in every month.
“Then you look at the value of the player with that team and the goodwill of that particular club.”
The Northern Lions will now relocate to Mpumalanga and become the second club to change ownership, after Bidvest Wits was sold to Tshakhuma Tsha Madzivhandila (TTM) and set to relocate to Limpopo province.
After reaching the MTN8 final last season with coach Owen Da Gama, the Rockets will be led by Dan Malesela in the 2020/21 PSL campaign.
