Struggling Chiefs still a cash cow

Cape Town - Kaizer Chiefs remain financially strong as a brand, according to Nielsen Sports, a premier provider of analytics and insights within the sports industry.

Despite a lack of success under Steve Komphela in the past season and a half, the Glamour Boys are reportedly still a lucrative entity as a football club.

"The reality is that very little commercial value has been lost by Chiefs in the current season due to not meeting the performance expectations of their fans," Kevin Watt of Nielsen Sports told City Press.

"Ticket revenue in South African football is a very small percentage of income for a club like Chiefs. As they do not own their stadium, they are not losing out on goods, beverages and related revenue either.

"Their share of PSL broadcast revenue is fixed, so this is not affected. In respect of their sponsorship renewal with Vodacom, their relationship has endured over many good and bad seasons.

"I do not believe value will be affected by the current string of bad performances, especially as they have a joint business venture in Chiefs Mobile."

"From a Nike perspective, they may lose some licensing revenue if fewer replica jerseys are sold, but, overall, they are in the first season of a new long-term deal. So I do not see any major commercial drama for the club currently."

Amakhosi are currently one game away from setting a new record for a winless run in the club's history in the Premiership.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Voting Booth
Would you be keen to see the Springboks join the Six Nations?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes! The Northern Hemisphere is the future.
53% - 5179 votes
No! The Rugby Championship is still the pinnacle.
47% - 4556 votes
Vote