Thread by @CashNSport

The PSL losing Absa as a sponspr is a big deal. This has apparently been in the works for quite a while but here is a breakdown of how the Absa deal worked and how the money was used.

#AbsaPrem #PSL

Absa and the PSL signed an initial R500-million sponsorship deal in 2007. The deal was renewed again in August 2017 with the agreement being that Absa would pay the PSL R100 million a year for naming rights to the league.

The sponsorship is mainly used for club incentives like monthly grants to PSL teams amounting R2.5-million a month. The league winners and runners up also get their allocations of R15-million and R7.5-million respectively from the Absa sponsorship

Here's a list of the #AbsaPrem broadcasters and sponsors.
Removing Absa from the list of sponsors means you have MTN, Telkom, Multichoice, Supersport, Nedbank and Glad Africa. The SABC's revenue broadcast numbers cannot be trusted because they are broke. #PSL

The PSL made a billion in revenue last financial year and no doubt, theyll have someone lined up to take on the league naming rights. Covid will likely delay an announcement because there is no league and even when it returns, there will be no fans for a while. Thats a hard sell

I also went and looked at Absa's financial pperformance over the last three years. Revenue has been growing steadily and they are in a strong financial position. I dont think this was about affordability.

#AbsaPrem #PSL

This picture tells a story of its own though. The share is down 40% since July 2018. That said, who in the banking sector hasnt been hard hit the last two years?

Whoever comes in to fill the void left by Absa, will probably get a great deal. Covid has dealt valuations a massive blow and that also goes for clubs and the league. Imagine paying for your name to be attached to a league thats played behind closed doors? #AbsaPrem