Funds hinder second BPL valuation

Mqondisi Dube | Friday June 8, 2018 15:17

In 2015, a South African sports research firm, Repucom, valued the local league at P15million in a groundbreaking move.

However, there has been no subsequent valuation, and when quizzed this week, BPL chief executive officer, Thabo Ntshinogang attributed the lack of progress to funding.

“We have not valued (the league) again in a while because we didn’t have the money. Maybe we will do it during the course of the season,” Ntshinogang said.

He said the valuation process can cost as much as P500,000, although it can be much less “if you ask the valuers not to focus on all the elements”.

The first valuation was necessitated by constant drawn out negotiations for sponsorships and the BPL, under Bennett Mamelodi, felt it was prudent to know the true value of the league.

There were feelings that the BPL was underselling its product, as there were no statistics to back up their negotiations for improved deals.

In valuing the league in 2015, Repucom said in the 2013-2014 season, tangible benefits from the league to the title sponsor stood at P1.5 million.

The benefit from advertising to the sponsor was P1.275 million. Exposure from televised matches is estimated to have brought benefits worth P5.7 million, while the appearance of the sponsor’s name on merchandise including club kits was worth over P1 million. The value for both tangible and intangible benefits was put at over P30 million for the 2013-2014 season.

The aim of valuing the league was to move towards commercialising against a backdrop of credible statistics or document.

The value of the league is expected to have gone up marginally, as the sponsorship figures from title sponsor, BTC, rose to P39million over three seasons. Mascom extended its Top 8 deal, by a further three years.

BPL is in constant lookout for potential partners, with the void left by Coca Cola for the knockout Football Association (FA) Cup still unfilled.