The Rise Of FIFA Transfer Bans… What's Happening?
PSL clubs are finding themselves in hot water with world football governing body FIFA over their failure to pay players what is owed to them when contracts are terminated. This is becoming a growing trend, with foreign players showing that they mean business by heading straight to FIFA to force PSL clubs to pay what is owed to them. Polokwane City, promoted to the DStv Premiership a few months ago, is the latest club in a hot mess. It is alarming that in one of the most lucrative leagues on the continent, clubs find themselves embroiled in such controversies, which have the potential to drag the PSL's name into disrepute. Soccer Laduma investigates.
What The Siya Crew Has Been Told…
Over the last few seasons, there has been a rise in PSL clubs copping transfer bans from FIFA for not paying out the terminated contracts of players. The latest side in trouble with football's governing body is Polokwane City, who are understood to have been hit with a transfer ban until they settle a dispute with former player Khuda Muyaba from Malawi.
The striker joined Rise and Shine in 2020 on a three-year contract and is understood to not have been paid for a few months prior to his termination in March this year. The issues of unpaid salaries or contract payouts for foreign internationals are taken straight to FIFA to handle, which was a similar case with Samir Nurkovic and Royal AM, who have not paid the R12 million owed to the Serbian striker, despite the transfer ban imposed on them. Chippa United were in trouble with FIFA recently for defaulting on payment due to Tanzanian defender Abdi Banda.
The Chilli Boys are understood to have failed to pay out the settlement agreement estimated to be around R1.2 million for the player, who is now in the colours of Richards Bay FC. Moroka Swallows chairman David Mogashoa inherited a problem from former club boss Leon Prins, getting a transfer ban from FIFA for money owed to the Slovenian duo of Obren Cuckovic and Vladimir Mandic, who were in the side's books in the 2014/15 season.
During the transfer ban, the Dobsonville-based outfit were unable to register the likes of Evans Rusike, Daniel Akpeyi and David Ulomi. In January this year, their transfer ban was lifted. While Mogashoa was not at the helm when the Birds defaulted on the payments of the two foreigners, he explained why some clubs fall into the trap of getting transfer bans.
"When you terminate (the contract of) a player, you then start prioritizing the players who are still at the club because if they are not happy, then they are not going to perform. If they don't perform, then you get relegated. You look after the ones who are at the club and, at the back of your mind, you have forgotten about the ones you have terminated. Those ones who have been terminated still need to be paid out, but they are not a priority in your mind. The priorities are the ones who are going to play a match tomorrow.
That guy you have terminated is a foreigner and then he takes you straight to FIFA. Then FIFA will start hammering," Mogashoa explained, speaking to the Siya crew.
"The problem is that you find players who were not happy with the way their contracts were terminated. Normally, you'd negotiate and say, 'Let me offer you a three or four months' salary and then we terminate. But then you will have people saying they want the full contract. They say you must pay them out the remainder of the contract. That's how matters end (up) at FIFA. When FIFA make a ruling that you must pay the duration of the contract, then it becomes a problem because no club is able to pay that once-off amount. If you pay that once-off amount, then you are going to default on many other things. So, the clubs that get banned by FIFA is because they are trying to manage their finances by keeping the current squad happy, but then neglecting to deal with the problems at FIFA. Players know that once they take you to FIFA, you will be forced to pay because you can't sign players," added the club boss.
Information coming through to Soccer Laduma indicates that Royal AM have not made the payment for Nurkovic and, at some point, could find themselves being docked points, which would make life difficult for head coach John Maduka, who is currently having to work with not being able to sign new players.
A source gave insight into Thwihli Thwahla's case, saying, "MaMkhize (club chairperson Shauwn Mkhize) is fighting it off with CAS (Court of Arbitration for Sport). The problem is that for that case to be heard, it's around R1 million. You can still lose the case and then you still have to pay Nurkovic. They are confident they will win the case and Nurkovic's camp is also confident they will win the case. As long as they have not paid, the case will remain. She also risks being docked points. The club's position is not healthy."
What Are The Facts?
With the rising costs and less sponsors coming on board, clubs are finding it difficult to comfortably sustain themselves in the elite division. Clubs want to compete, and this means that they go out to get quality players who sometimes come with high packages. When these players have their contracts terminated before their expiration, for various reasons, PSL sides find it difficult to pay out the millions. This is when the trouble starts. There are a number of PSL clubs that have signed foreign players and when things don't work out, they go their separate ways. But PSL clubs have not always come to the party in terms of making payments. This, the Swallows chairman believes, is because of the reality of rising costs for PSL clubs.
"I don't wish a transfer ban on anyone. I feel bad for the guys who get banned," Mogashoa said. "I'll give you an example. A normal match at Dobsonville Stadium costs me around R180 000 – that is (for) the stadium venue, security and other stuff. When you play (Kaizer) Chiefs, you are looking at just below R400 000. Imagine every fixture we play at Dobsonville, I must pay around R200 000. Imagine all the other clubs who don't have sponsors. When you play away fixtures, you must still pay around R70 000 for accommodation, because you need to arrive the day before the match at the hotel. Then you must still pay for flights. Where is that money coming from? It's coming from the (PSL) grant. By the time you are done, you are left with about R500 000 or R600 000 from the grant. Then you have your salary bill. A salary bill for a club that wants to fight is between R2.5 and R4 million. The problem starts there because now you have salaries you must pay. If you have a business like me, then you must dig into the business to cover those salaries. With clubs like Polokwane City who don't have sponsors, I understand. I am in there with them. They don't have extra money coming in. We all get a grant of R2 million plus VAT, which is about R2.3 million. The costs keep going up, but the income remains the same."
The Story Behind The Scenes
How It Works With Local Players
There have been cases of local players not getting paid out by clubs, but unlike foreigners, their cases are dealt with by the PSL Dispute Resolution Chamber. In some cases where a club owes a local player and is unable to make a payment, the PSL then deducts a certain amount of money from the monthly grant to ensure that the player owed gets paid. Foreign players, meanwhile, don't need to go to the PSL to have their matters heard. They can take it straight to FIFA.
"You can't go to FIFA if you are a local player. They will send you back to the (PSL) DRC because the contract that we signed was designed by PSL and it says that if you are a local, then you should go to the DRC. Only international players can go straight to FIFA. If you are a local, then you have to go to the PSL and fight it off there. Once the DRC makes a ruling, it's final. It can only be overturned by SAFA," a source revealed.
"That's why you find that clubs would rather settle an international player after FIFA has made a ruling than settle a local player. With a local player, they will still negotiate and find a way around it."
Follow The Stellenbosch Model?
According to a source contacted by this publication, Stellenbosch FC have found a way to manage their finances, which is why there have never been stories about them owing players that have left the club. The Winelands outfit is understood to have a salary bracket, and only a few players earn outside of it.
"It could work if we all follow the Stellenbosch model. The experienced players want salaries where they will be able to go buy nice things like BMW or big houses. When (Junior) Mendietta was at Stellenbosch, they had three or so players that they would pay what they call (an) out-of-bracket salary. I think Mendietta was being paid around R200 000, so he was the highest at Stellenbosch. The problem is that you can follow the Stellenbosch model, but it will not work for everyone," the source noted.
"It works for them because they have very good facilities there. It's easy for them to get players out of development into the first team. They have a way of targeting players from clubs that have been relegated and then offer them a decent salary, not the best salary. Stellenbosch can sell high, but buy very low and then they keep reproducing. Then they avoid all these things," concluded the source.
