LOCAL football clubs are set to retain a larger share of their matchday revenue after cabinet approved significant reductions in levies charged on gate takings as part of the government’s wider ease of doing business reforms.
The measures were approved following a review of licences, permits, levies and fees in the sports sector aimed at reducing the regulatory burden on businesses and organisations.
Addressing a post-Cabinet media briefing, Minister of Information, Soda Zhemu, said several levies affecting football clubs would be substantially reduced once the necessary statutory instruments are put in place.
“The Sport and Recreation Commission’s six percent gate takings levy will be reduced by 50 percent, while ZIFA’s six percent levy on gross matchday revenue will also be cut by half,” Soda said.
He added that the Premier Soccer League (PSL) levy would be reduced from 10 percent of net matchday revenue to four percent.
In addition, local authorities’ venue hire levy will be lowered from 15 percent to 10 percent of gross attendance revenue.
Zhemu said the new charges will take effect after the necessary statutory adjustments have been finalised.
The reductions are expected to provide significant financial relief to Premier Soccer League clubs, many of which have consistently complained that multiple levies on matchday revenue leave them with limited resources to meet operational costs, improve player welfare and invest in club development.
