Cape Town City FC have wasted no time communicating with players and staff on their future and salaries following their relegation.
The Citizens suffered relegation to the Motsepe Foundation Championship after losing 1-0 to Orbit College FC on Wednesday in the PSL Promotional/Relegation Playoffs.
CT City chairman John Comitis is on record as saying his club’s relegation to the second tier has put him at risk of losing key sponsorships, notably from banking giants FNB. He has said that returning to the PSL as soon as possible is now critical.
But in the meantime, the club has addressed players on what is likely to happen in the next few weeks.
WHAT CAPE TOWN CITY FC HAVE SAID TO PLAYERS
Comitis is said to have told the players that being in the Betway Premiership comes with increased cash flow, as well as increased overhead. NFD clubs have significantly lower cash flow, in the range of 80% less funds than the top-flight.
The monthly grant received by Betway Premiership clubs is in the region of R2.3 million, while the second-tier clubs pocket R500000 monthly. The veteran administrator further says relegation puts them in a perilous financial position. He added that the situation will lead to the “loss of the FNB and SportPesa sponsorships”.
Should CT City continue under the same contracts with players, they will have the overhead of a PSL club but with the cash flow of an NFD club. Comitis noted that the “current operations are financially unsustainable.”
CT CITY’S DILEMMA: PSL OVERHEAD, NFD CASH FLOW
The Mother City club will have to implement certain measures to ensure its financial viability. Players were told the club is envisioning “cost-cutting measures”. However, they will have to consult with stakeholders, with retrenchments unavoidable.
CT City will make the final decision after the consultation process is done. The consultation falls in line with Section 189 of the Labour Relations Act.
Section 189 outlines the procedures for dismissals based on operational requirements, commonly known as retrenchments. This section, along with section 189A, guides employers and employees through the process of consultation and potential dismissal due to economic, technological, or structural changes within a business.
Comitis has confirmed that he would be open to purchasing a top-flight status as he looks for the quickest route back to the Betway Premiership.
“Well, you know, that’s always an option because the PSL has allowed an entry and a window of opportunity for clubs to do that,” Comitis told MSW.
“At the end of the day, for me, it’s about providing a service for football players that can get them to the highest level. I’ve been doing it for 27 years, and it’s important that we have the right platform to be able to do that.”
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