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- TS Galaxy owner Tim Sukazi says the value of Kaizer Chiefs would not be below 1 billion rand.
- Sukazi recently bought the PSL estate of Highlands Park, which sees the Galaxy soar from the NFD into the main division.
- Sukazi made the comments in a conversation with the South African Association of Football Journalists (Safja).
How much would you expect to pay if you had plans to buy the biggest club in the country? Kaizer bosses? Get ready to part with a fresco One billion rand.
That’s the rough assessment from the owner of the TS Galaxy Tim sukazi gave during a conversation with the South African Association of Football Journalists (Safja).
Sukazi recently bought the Premier Soccer League (PSL) estate from Highlands Park, revealing a “ball park” figure of R60 million cost for the transaction that saw his National First Division (NFD) team skyrocket all the way to the Premiership. .
“If you’re talking about the Kaizer Chiefs or the Orlando Pirates or [Mamelodi] Sundowns, so you’re talking about something else, maybe even a billion rand, “Sukazi said.
“There is no chance that you can buy Kaizer Chiefs for less than R1 billion. You have to look at what’s in the club.
“They have a sponsorship from 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 monetary value. Before you wake up, their endorsements would be around 150 million rand or more.
“And then there are other things like the values of his players, goodwill, he has a rich history and that will count in the pricing model.”
Sukazi took Safja through some of the ins and outs of the deal she made to buy Highlands Park.
“The price of a soccer franchise depends on the willing buyer and seller model,” he said.
“However, there is a ball game field. A professional football status at the highest level of the game should cost in the region of R60 million or more.
“And how do you get to that price? There could be some science. One, you would look at the PSL grants that come in, the amount of grant money football clubs receive per month (believed to be millions per year).
“Then you look at the value of the player with that team. And then you look at the goodwill of that particular club.
“All of that together will put you at that R60 million mark for a ‘small’ club, if I may say it humbly, with respect to Highlands Park.”
Sukazi, who also tried to buy Bloemfontein Celtic before the Highlands Park deal last season, said he did not need to seek outside investors or shareholders to secure the deal and that he could finance it on his own behalf.
“There is no law that says you have to look for shareholders,” he said.
“You do these things based on your ability. If you can buy a R1 billion business today, do it. If you can do it alone, do it alone, but if you need shareholders, you can get them.
“In our case, we just decided to do it. That’s it.”
