Former Bloem Celtic owner makes interesting estimate on PSL status cost
Former Bloemfontein Celtic owner Jimmy Augousti believes a PSL status is currently overpriced and has suggested a far lower price tag for clubs.
In recent times some of the DStv Premiership teams have reportedly been sold for amounts in the region of R50-60 million.
Augousti, who bought Celtic in 2001 from the late Petrus Molemela, sold it to Max Tshabalala at a reported R45 million in 2014. The club has since relocated to KwaZulu-Natal after being bought by businesswoman Shauwn Mkhize and renamed Royal AM.
He has been involved in development football and recently formed Bloemfontein City FC.
Speaking on Metro FM’s Sports Night Live, Augousti confirmed that there have been attempts to buy Celtic status twice with no success.
“Well, I have spoken to Max Tshabalala twice before to try to buy Celtic outright from him before he sold it to MamKhize of Royal AM,” he said.
“But we couldn’t agree to a price and he continued with the club until he sold it. He has now started this season playing in the ABC Motsepe League under the name Bloemfontein Celtic. It is something we have considered but we haven’t got to that point at this stage.”
IS PSL STATUS COST OVERPRICED?
Augousti was also asked what he thinks a DStv Premiership status should cost and this is what he had to say: “I think people are talking about the R50-60 million mark if you listen to people out in the market. I think a fair amount would be R30 million,” said Augousti.
“Let me put it this way. If I got R50 million and I put into the bank a fixed account, I am getting 10 per cent interest. I am making myself R5 million a year. Take the same R50 million and invest it into a football club.
“You get R2.5 million from the Premier League and you use another R2.5 million from your pocket. So what kind of business is that? Hence I say maybe they are not worth R50 million on the market,” he explained.
WHY SOME PSL BOSSES ARE FAILING TO RUN CLUBS IN THE PREMIER SOCCER LEAGUE
“The mistake most people make is that you end up raising money to buy the status. But you don’t have the money to run it from there on,” said Augousti.
“That’s where you find a lot of teams running into financial problems. Buying the club is only one part of the deal. The most important part is to sustain it on a monthly basis. We all know that a Premier Soccer League grant can not sustain a club on its own. So you have to dive into your pockets or find sponsorship.”
RELATED STORY: Tshakhuma Tsha Madzivhandila change to Celtic’s traditional green