In a tough economy for football clubs, the last thing anyone wants to do is waste money. But it seems no matter how many coaches Chippa United fire, chairman Chippa Mpengesi is not afraid of the cost implications. Over the years, the club has paid out big money for the coaches they have parted ways with and there is no end in sight to how the Gqeberha-based outfit runs its affairs season in and out. Soccer Laduma investigates what goes into paying out the coaches who leave the relegation-threatened side.
What The Siya Crew Has Been Told…
Chippa United have been hiring and firing coaches at will ever since they first made their way up to topflight football over 10 years ago, and according to information received by the Siya crew, chairman Chippa Mpengesi is losing a lot of money in having to pay out the individuals he gets rid of on a regular basis. A former employee at the club has revealed that an average salary for a coach at the club, depending on who you are, is R100 000 after deductions are made. At times, it could be less due to the stature of a coach, but it does not take away the fact the club is losing millions of rands in paying out coaches, depending on the type of agreements they have in their contracts. In some cases, when a coach is fired, Mpengesi pays out a lump sum to the individuals. The lump sum, at times, can be paid in two or three instalments, depending on how much the club can afford at the time. There are also cases where coaches get paid monthly for a certain period after getting fired, so that they get what's owed to them by the club. This means that, in some cases, the club can get a new coach, while still paying a monthly salary to the predecessor. While there is no exact figure, Soccer Laduma understands that Chippa have gone north of R10 million in all the pay-outs he has made to coaches and it's not likely to stop anytime soon. Most of the coaches, some who spoke on condition of anonymity, gave Mpengesi credit for honouring pay-outs.
One of the coaches who was at the club, Tebogo Moloi, gave insight into how it went for him after he was sacked by the club in March 2018. "You get paid out a certain fee. It also depends on the contracts on every coach, in terms of what your contract stipulates. Others get paid out the remainder of your contract and others get paid out for three months because maybe you did not meet the expectations of what your contracted stipulated. So, you are compensated for those three months until maybe you get a job. It varies from contract to contract" Moloi told the Siya crew. "I had to be paid out the rest of my contract. When I was released, I was left with about four months, and he paid me. Every month, I would get a salary that I would normally get when I was coach. He had to cover for those last four months. It's not often that you will hear stories of coaches not getting paid when they are fired. I don't want to lie, he paid me and I got it on time, just as I was getting it when I was still the coach. I was looked-after properly there." Another coach who was fired by the club gave more information how settlements can be paid by the Gqeberha-based side. "You find that if he owes you R500 000, sometimes he would pay you in two or three instalments. It's not a once-off lump sum. If it comes in two or three instalments, it's still manageable for him. It depends on the contracts and what coaches do and say. The agents of the coaches are clever, and you won't say no to being paid in two instalments. At the end of the day, that's what he can afford," the source confirmed. "I was getting R100 000. I always used to ask myself, so many coaches? How much are you losing? Because that means you must pay them out."
One coach who was fired in 2019 confirmed that he was paid out at one go, due to the fact that his contract was just about to reach its expiry date. "With me, they were professional. I got everything. We negotiated when we parted ways. They were honest and did everything we agreed on. With me, they paid it once-off because there was not a lot of time left on my contract," the coach revealed. A former employee at the Chilli Boys, who also asked to remain anonymous, gave an insight into how things worked while he was there, stating that there were times when the PSL grant had to be used to pay out to certain coaches after matters were taken to the PSL Dispute Resolution Chamber (DRC). "I do know of instances, when I worked there, where payments did not materialise after they fired a coach. I also know of instances where matters, not just with coaches, but with staff and players, had to be taken to the PSL and then the PSL would use the monthly grant. This is once the matter had gone to the DRC and once they lose that particular case, then they would have to pay out using the PSL grants," the ex-employee said. "I definitely know an instance of one or two individuals who approached the PSL, and the matters have gone to the Dispute Resolution Chamber and that DRC forced the club to make payments. Keep in mind that payments sometimes don't come every month there."
What Are The Facts?
Chippa Mpengesi is an ambitious chairman who wants to see his club succeeding, but as Daine Klate recently said in an interview with Soccer Laduma, he can be emotional in the decisions he makes for the club. This has seen him getting rid of coaches a bit too early and it has cost him a lot of money. Chippa have appointed coaches on short-term deals, but at times they hand out three-year contracts, as was the case when they appointed Lehlohonolo Seema from Bloemfontein Celtic. The former defender was in the job for about six months before he was shown the door. Gavin Hunt was appointed on a two-year deal and left within five months after he was placed on suspension by the club. In a statement, Chippa confirmed that they had reached a four-month settlement with the former Kaizer Chiefs mentor. It's understood that Hunt was getting a six-digit salary. Eric Tinkler joined the Chilli Boys on a one-year contract in August 2018 and, to no surprise, was out the door by December, less than six months into the deal. Chippa have had an on-and-off relationship with Dan Malesela, who has had three different spells with the side. Ali Tlhoaele, who is Malesela's representative, explained that his client got paid out by Chippa. "I would like to state that the last time my client was with Chippa, he was contracted to another agent. However, when he signed with me, he made me aware of the contract details of the previous employer. Chippa had complied to the termination settlement. However, he defaulted on the last month and then we had to re-negotiate for the remaining balance to be paid, which he did pay on terms. My client couldn't rush for a lump sum because the club could not afford the lump sum. He had to be paid month to month, so that he can be taken care of," said Tlhoaele of KTIC (PTY) Ltd. "I don't fight or rush to go to the PSL. I like to see how amicably we can sort out the problem, because I will need that club in future. I don't burn my bridges. In short, I have never had a problem with Chippa in terms of settling for my client."
The Story Behind The Scenes
Working with Mpengesi
Quite a few of the coaches who've worked under Mpengesi at the club describe him as someone with a good heart. "The chairman is a fantastic person. If you see him and you are in his company, he's got a good heart and you can't fault him for that. He is a nice human being. Obviously, it's his business and club, so sometimes he acts on emotion, but it's understandable, so you have to come from a place of understanding," Daine Klate told the Siya crew in an interview a few weeks ago. Moloi gave his own account… "You will be surprised how knowledgeable he is. There is no one who loves his team than that guy and no one has a bigger vision and expectation from the players. When you sit down with him and listen to him talking about how big he wants Chippa United to be…. But somewhere, somehow, things change. But honestly, I never had problems with him."
The hiring and firing
Since 2012, when Chippa made a return to the topflight after being relegated to the second tier, the club has had over 35 head coaching changes. They appointed Manqoba Mngqithi when they got back to the elite division, but he did not last long. Julius Dube, the late Roger Sikhakhane, Farouk Abrahams, Wilfred Mugeyi, Mark Harrison, the late Ian Palmer, Vladislav Heric, Kosta Papic, Ernst Middendorp, Mich D'Avray, the late Velile Dyaloyi, Dan Malesela, Mbuyiselo Sambu, Moloi, Eric Tinkler, Joel Masutha, Clinton Larsen, Duran Francis, Norman Mapeza, Rhulani Mokwena, Seema, Siyabulela Gwambi, Hunt, Kurt Lentjies and Klate have all been in charge at the club. Sikhakhane, Abrahams, Heric, Malesela, Gwambi and Seema have had two or three stints with the club and some of the other coaches on the above list cannot be ruled out of making a return to the club in future.
The Siya crew spoke to a top agent in SA to get their expert opinion on the pay-outs at Chippa. For obvious reasons, the agent will remain anonymous.
Secret Agent
"I am sure he has lost a lot of money throughout the years. It's costing him money, a lot of money. It's difficult to run a business like that. It's expensive to run a club. What's important is that you need to do the right things from the beginning. Some people don't work the way I do or like how others work. What happens is that I make sure that the kind of contract I conclude with an employer protects my client. The employer will never have the chance of transgressing that contract. Immediately there is a breach, the consequences are huge. Over and above the contract and other provisions, there should be buyout and termination clauses and intermediary obligations. When it comes to a point where you no longer want my client, you will pay certain amounts according to the period he has been there. The reason for the termination will also determine a good settlement, especially if the employer is the one who transgressed the contract. In short, to sum up my explanation, it depends on the relationship between the coach and the employer, and between the employer and the client's representatives, to see how you negotiate these things."
Watch This Space
"I am sure he has lost a lot of money throughout the years. It's costing him money, a lot of money. It's difficult to run a business like that. It's expensive to run a club. What's important is that you need to do the right things from the beginning. Some people don't work the way I do or like how others work. What happens is that I make sure that the kind of contract I conclude with an employer protects my client. The employer will never have the chance of transgressing that contract. Immediately there is a breach, the consequences are huge. Over and above the contract and other provisions, there should be buyout and termination clauses and intermediary obligations. When it comes to a point where you no longer want my client, you will pay certain amounts according to the period he has been there. The reason for the termination will also determine a good settlement, especially if the employer is the one who transgressed the contract. In short, to sum up my explanation, it depends on the relationship between the coach and the employer, and between the employer and the client's representatives, to see how you negotiate these things."
