Why MultiChoice sold SuperSport United and what it reveals about Africa’s Pay-TV crisis
Multichoice Nigeria faces a major regulatory storm as it grapples with a ₦766m data privacy fine amid dwindling subscriber numbers and rising consumer discontent.
South African entertainment giant MultiChoice Group has confirmed the sale of its Premier Soccer League (PSL) club, SuperSport United FC, to Siwelele Football Club (Pty) Ltd. This strategic move marks more than the end of a three-decade ownership—it signals a deep restructuring driven by financial shocks across Africa, most notably in Nigeria, where the broadcaster has suffered a devastating blow to its revenue base.
Below, we analyse the business, economic, and strategic implications of this sale and what it portends for MultiChoice and the future of subscription television in Africa.
SuperSport United: From Crown Jewel to Strategic Liability
For years, SuperSport United stood as a symbol of MultiChoice’s investment in African football, with multiple PSL titles and a reputation for nurturing talent. But that legacy could no longer justify its place on the books. On 3 July 2025, MultiChoice announced the sale of the club to Siwelele FC, pending approval from the PSL Executive Committee.
Rendani Ramovha, CEO of SuperSport, framed the move as a “refocusing” effort, stating that the company’s strength lies in broadcasting sports—not running clubs. “This decision allows us to remain Africa’s biggest sports broadcaster while responding to market shifts,” he said.
New owners Siwelele FC have pledged to continue SuperSport United’s legacy. The club is expected to relocate to Bloemfontein and could be rebranded to reflect its new chapter. However, the sale’s timing and urgency raise questions about deeper financial pressures within the parent company.
Nigeria: The Epicentre of MultiChoice’s Revenue Collapse
Nowhere has MultiChoice’s financial pain been more acute than in Nigeria. In the financial year ending March 2025, revenue from its Nigerian operations fell by a staggering 44%—from $355.9 million to $197.7 million. That kind of drop is not just concerning; it is existential.
The root causes are systemic. Inflation in Nigeria surpassed 23%, and the local currency—the naira—lost 44% of its value over the same period. These macroeconomic conditions wreaked havoc on MultiChoice’s profit margins, triggering foreign exchange losses totalling $158 million.
Even more alarming was the subscriber loss. Nigeria alone accounted for 1.4 million of the 1.8 million customers lost across MultiChoice’s “Rest of Africa” division. The country, once the company’s crown jewel in West Africa, is now its biggest liability.
Multichoice’s Financials: A Bleak Picture
Group-wide, MultiChoice’s performance reflects a company in distress. Overall subscription revenue declined by 11%, dropping to $2.27 billion, while operating profit plummeted by 34% to $263.5 million.
The group posted a headline loss of 800 million rand (approximately $45 million)—a dramatic swing from previous years’ profits. Contributing to this collapse were foreign currency depreciation costs totalling 5.2 billion rand, mostly driven by losses in Nigeria, Kenya, Angola, and Zambia.
One of the group’s biggest disappointments was Showmax, its flagship streaming platform. Although subscriber numbers rose by 44%, trading profits dropped by nearly 50%, suggesting that growth in user numbers has not yet translated into revenue stability.
Strategic Pivot: Why the Club Had to Go
Faced with this financial maelstrom, MultiChoice is making hard decisions. Selling SuperSport United is just one piece of a larger pivot away from legacy assets toward a leaner, tech-driven business model.
According to Group CEO Calvo Mawela, the future lies in digital and on-demand services. He noted that DStv Internet usage jumped by 85%, while DStv Stream saw a 48% increase. The company is now banking on its streaming platforms, partnerships, and AI-driven content strategies to weather the storm.
The sale of the football club also reflects a broader global trend—media companies are distancing themselves from direct ownership of sports franchises. Instead, they are focusing on content rights, production, and distribution, where profit margins are more predictable and scalable.
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Africa’s Pay-TV Crisis: Not Just a MultiChoice Problem
MultiChoice’s struggle is emblematic of a larger challenge facing pay-TV and media companies across Africa. With rising inflation, weakening currencies, and increased access to free online content, many African households are cutting back on traditional subscription TV.
Younger audiences are migrating to platforms like YouTube, TikTok, and Netflix—forcing companies like MultiChoice to play catch-up. The collapse of its Nigerian revenue base, once considered its strongest foothold outside South Africa, has laid bare the urgency of this digital transition.
Moreover, regulation, taxation, and foreign exchange controls in several African countries have made it nearly impossible for subscription-based platforms to operate profitably without adapting.
What This Means Going Forward
The sale of SuperSport United may look like a minor event in isolation, but it underscores a major strategic overhaul for MultiChoice. It’s not just about letting go of a football club—it’s about shedding non-core assets, prioritising scalability, and moving away from legacy revenue models.
Whether this restructuring will be enough remains to be seen. The company’s success will now depend on how fast it can monetise digital engagement, navigate Africa’s volatile economies, and compete with global streaming giants in a rapidly evolving media landscape.
For now, MultiChoice is betting on a digital future. But as the numbers show, the road to profitability will be long, unpredictable—and increasingly competitive.
