Old Mutual On The Money
Old Mutual On The Money
Katlego Mphela Talks Life After Football, Retirement, Financial Challenges, Tips & Regrets
A legend of South African football, Katlego Mphela was a Bafana-Bafana stalwart for many years. Our Head of Financial Education, John Manyike, caught up with him to chat about life after football and how retirement impacted his approach to finances. Watch this insightful interview now for a rare glimpse into the financial realities of being a pro athlete.
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Old Mutual 0:00
Welcome to the On The Money Podcast with John Manyike.
John Manyike 0:04
Today we are joined by one of South Africa's top striker. I say prolific striker of note in his times. I mean, he played for Super-Sport. He played for Sundowns, he played for Orlando Pirates. He's got many caps behind his name, having played for the national team and having scored some spectacular goals. Today we're going to hear a spectacular story from him. And that's none other than Katlego “Killer” Mphela. Dude, you good?
Katlego Mphela 0:33
I am good and you?
John Manyike 0:36
I am good too. I'm sure people have noticed you're not necessarily in the center like you used to you know? You're not in the scene in front of people and you're doing your own thing. Can you tell us what's been keeping you busy?
Katlego Mphela 0:51
I'm currently doing some community projects, in the township obviously, where I come from, and we're in the process of opening a soccer academy, Katlego Mphlela Academy, they take time these. takes time, these things. And then I'm also busy with Betway. I'm one of the ambassadors there, and then I think recently people saw that I was with VW, but our relationship has stopped.
John Manyike 1:16
There was a breakup.
Katlego Mphela 1:17
So there was a breakup. So, you know, when it comes to money, these things, but we're still doing some things. They're also helping me with my community project and then also I'm helping my mom with the catering business.
John Manyike 1:30
Okay. Maybe let's take it from the top. Where you grew up family-wise, you know? What was the setup? Originally from where?
Katlego Mphela 1:40
Originally, I'm from Brits, a small town called Brits. It's in the North West. I'm a firstborn we are three at home and three boys at home. And I was raised by my grandmother and I grew up with my cousins. And yeah, that's where my life started.
John Manyike 1:57
Have you always been playing soccer from school or anything?
Katlego Mphela 2:03
Yeah, man. You know, with these places, you know, these remote places, there's not a lot of entertainment. So, everything when you do a soccer, when you're growing up.
John Manyike 2:12
Okay. You are commonly known as ‘Killer’. I mean, nickname. Did you have any other nickname growing up apart from ‘Killer?’
Katlego Mphela 2:21
Sure, yeah. When I grew up, they used to call me Manyoni. There was a drama man. Emzini Wezinsizwa. There was this ugly guy. I don't know why, but I don't know, maybe I was ugly when I was growing up. I was not. I still don't understand why they were calling me that name. And then obviously there was a soccer name. When you're playing in the streets, they used to call me Robson Muchichwa.
John Manyike 2:51
Oh, yes, yes.
Katlego Mphela 2:53
Because my grandfather, has a head built like Muchichwa, so they called me Muchichwa because of my grandfather and he was a very big fan of Kaizer Chiefs.
John Manyike 3:06
Okay. So, let's talk about the issue that we see a lot among soccer players. They tend to have financial challenges when they retire from football. What do you think is the cause?
Katlego Mphela 3:20
Honestly speaking, I'm going to open it. Be open with you, you know? I think generation after generation is the same issue. It's cars, it's booze, it's women, it's unnecessary things. It's clothes. But not all of the guys. There are some guys that I know that they invested properly in their finances, but 80% of the guys is the same story. And also, when I say women, most of the guys I know, some played overseas, they were making big money, but, you know, divorce came, and they lost everything. But the common dominator, he has friends, you know, fleshy cars and women and all these unnecessary things. And you know, we have a problem with booze.
John Manyike 4:07
So, obviously, throughout your career, you were playing under different coaches. And which is the one coach that really sticks out for you, out of all the coaches that were managing you, that would say, this one has had the biggest influence in my life.
Katlego Mphela 4:25
I think every coach played a role in my playing career. Obviously, when I started playing professionally, I was scouted by Jomo Sono.
John Manyike 4:36
Oh, yes, yes.
Katlego Mphela 4:37
And then, as I told you, where I come from, there's no opportunities. So it was one of those things in my lifetime. He gave me the opportunity, and he was the foundation of everything. And then here comes Pitso Mosimane, who I think out of all these coaches, he played a big role in my life. He was a father figure to me. Still is, actually. You have another coach that came in from overseas that believed in me. That's when I started scoring goals. So, you have these three coaches that played an important role in my life.
John Manyike 5:12
Who's the third one?
Katlego Mphela 5:13
The third one was [Foreign Language], when he used to play for Barcelona. But I'll say, Pitso.
John Manyike 5:22
[00:05:23] It's a big name.
Katlego Mphela 5:23
Yeah, that's a big name. A very big name. But I'll say, Pitso stand out because he's the one who gave me the opportunity. Everyone knows me because of Pitso. He brought me back from overseas to play for Super Sports when no one knew me. And then obviously, you know, our relationship when he was the coach of the national team. I'm here as “Killer” today because of, you know, he introduced me to South African fans or South African football.
John Manyike 5:53
Yeah. I mean, Pitso has been one of the coaches who has had an eye for talent. And you speak very fondly of him, I think, in many of the interviews. And you speak about the fact that apart from him being a father figure to you that you used to talk about many things and that if you had listened to some of his advice and maybe your life could have been different. What were those type of conversations that you were having about life and money with coach Pitso?
Katlego Mphela 6:22
I think every player that played for Pitso will tell you the same thing, the same story. Someone who's passionate, who's hands-on. He sends one. As I said, he wants to know about your family. He wants to know about your wellbeing. He wants to know you as a person. So obviously, when you have those conversations, not only about soccer, and there'll be advises, you know, along those conversations, we used to talk a lot about investing, business. But when you're young and when things are going well for you, you take it. Sometimes you don't take it. So he's someone that's always been there for his players, especially for me. We've spoken a lot about the investment as I said. I remember there was a time where he mentioned something about KFC franchises and stuff, but back then we didn't know. we didn't care. He wants to know, how's your family? You know, are you sending money home? Are you saving your money? You know, I remember when I went to Supersports, I came back from overseas to join Supersport. So, when I came this side, it was different because that side, guys spend money like crazy. A young boy will buy a Ferrari. So when I got here, he had a problem with players buying big cars. But then I didn't understand because, you know, I'm from a different culture now, but when time went on, it made sense why he didn't want guys to splash on cars. Most of the guys, when I meet them and we sit down and we start speaking about Pitso, and they really, you can see that they wish they had listened that time, but, you know, we learn. As time goes on, we learn. I mean, experience is the best teacher. So, we learn.
John Manyike 8:29
Do you have any specific regrets about anything in particular that maybe Pitso spoke to you about in terms of finances that you think if you had applied it, then your life could have been different?
Katlego Mphela 8:42
I think it's the one I spoke about, you know, flashing on cars. That money could have done something better. Obviously, as I said, I remember there was a time when Supersport was selling shares. Phumeza.
John Manyike 9:08
I remember.
Katlego Mphela 9:09
They advised us to join those things, and we didn't. You see, people are cashing in now, you know, from 2007 or 2006. It could have been a lot of money, but there's a lot of things that we spoke about. But I think they understand that it's spending on cars and unnecessary things.
John Manyike 9:28
What were the worst financial mistakes you did as a soccer player in your prime?
Katlego Mphela 9:34
Me, I loved cars. I loved the leather. I love the smell of leather. First car sales, I once came here in Braamfontein. There was an Audi there. We were passing with my friend, and I saw this. Remember those LS4, the old ones, you saw it there by the window. I was like, hey, stop. We went in. I got in there. I said I want this car. We signed. And that was only Wednesday or Friday, I got that car. I think I was paying about R8000 a month for that car. It was unnecessary because I never been driven it for a year. So those things you know. And it was not all bad decisions, because along the way, we were robbed. We were scammed. There was one incident where we were at Sundowns and there was a guy that was introduced and he was into the trucking business or something. We didn't know anything about talking business, but I think it was me, Vilikazi and other guys. He was introduced to us by Koketso Mmotong. And we went to the offices. It was a proper setup, proper office. The contracts were there. I think everyone took out 80 grand’s trucking business. They said, we're gonna get trucks and stuff. And from there we were scammed. When we went there, the office was never there anymore. So it's not only that we misused our money on useless things. You know, some businesses failed along the way as well.
John Manyike 11:05
So you talk about businesses failing along the way. I mean, did you venture into any business during those days? And what business was that? I believe there was a Chisa Nyama at some point. What happened there?
Katlego Mphela 11:20
I always had passion for music as well. So this other guy, this other friend of mine is like, instead of you going to these places, you know, to chill and stuff, why not open your own Chisa nyama? And then I was like, yeah, good idea. But the problem with that is that we were renting the space. So, yeah, we opened the Chisa nyama. Started well, but when time went on, you know, when you're not hands on with these businesses, you always gonna lose money because you have to be hands-on. But you don't have time now. You're playing. You have to, you know, people are stealing from me. And just because money is getting in now, you take it, you're running it from your own pocket. And it never worked. And we had to close because it was killing me in the pocket so we had to close it. And we came back again, I think last of last year, but with a business partner and, you know, when there's two bulls in the crawl, it never works. Those are kind of businesses that failed.
John Manyike 12:27
Okay. So you went, you played overseas, I think, in France?
Katlego Mphela 12:32
Yes, I played in France.
John Manyike 12:33
And then you came back, and you played for Supersport. You went to Sundowns, you went to Kaizer Chiefs. I mean, those were periods of your pride, of your career. What were the top salary you ever earned amongst any of those teams? You don't have to say which one. The top you've ever earned a month.
Katlego Mphela 12:52
I think it's Sundowns. Not the monthly payments, the salaries. I think the whole package of my contract, the signing on fees. And it was the four, three plus one contract. Three years with an option. The package was proper. You know, Sundowns, they always take care of their players. But also, people forget that.
John Manyike 13:20
You have not said that much.
Katlego Mphela 13:21
No, no, no. I can't disclose that. But it was proper. It was big money.
John Manyike 13:29
But I'm sure we're talking a few millions.
Katlego Mphela 13:31
It’s been four years yeah.
John Manyike 13:33
I mean, that was then, chief. I'm sure it was more than 5 million.
Katlego Mphela 13:36
No, I'm just not, below 5 million. But also, you know, you have agents and stuff and then they take their portion and you have tax. They had to tell me about the SARS thing. I also encountered the same problem, but mine was sorted, so I had to pay.
John Manyike 14:00
So there was a time we were owing SARS.
Katlego Mphela 14:01
I think they made a mistake. They thought I was getting money from. I was owning a business. But only to find out that the only man that was coming into the salary from Sundowns and we already paying tax there. So it was sorted. The only thing I paid was the arrears. But there was still a lot of money.
John Manyike 14:28
But with the signing on fee, what was the first thing you bought from the first signing on fee?
Katlego Mphela 14:34
I think I built my grandmother house where I come from. And then I also bought my mother a house.
John Manyike 14:47
I mean, that's good, chief. I mean, at least you can point to something you've done that's responsible.
Katlego Mphela 14:51
And then with my whole package, and when I joined chiefs, I built myself a house. And there was a time I also had a townhouse in another house in the Mabopane. But they were sold. I don't know what you call it. Is it repossessed?
John Manyike 15:14
Yeah, they were repossessed. Why were they repossessed?
Katlego Mphela 15:16
Because you couldn't keep up with the payments, so they possessed. So the only thing that's left is my grandmother's house, my mother's house and my house.
John Manyike 15:27
Family wise, how was the setup there? Hey, because the soccer players, dude.
Katlego Mphela 15:34
Family wise is in my family.
John Manyike 15:37
I mean, I'm sure you have children and you had some relationships here and there.
Katlego Mphela 15:42
Yeah, I had a girlfriend. My baby mama passed on. I have two daughters. My first baby mama passed on. We were close. I think we could have been married by now. And then after that, I've never been in this stable relationship.
John Manyike 16:00
Maybe short course or so.
Katlego Mphela 16:01
] Not really. We tried. But you know, these women when you're a soccer player. You don't know the intentions. And sometimes doesn't work. Sometimes it works.
John Manyike 16:15
So obviously there would have been a transition, you know, like those days where you're highly paid and then when you retired from there, your salary must have reduced quite significantly.
Katlego Mphela 16:27
When you retire, I mean, you can have 5 million now in your bank account. But if there's nothing. If that 5 million doesn't do anything for you, doesn't bring another money, it's gonna finish you know. Because when you retire, you save this money, and it won't last you five years. It won't last you five years. And I think another mistake that we make as soccer players is we want to go into business or to invest after the career is finished. I think you must do it while you still play. Because when you're done, then you have the experience you know. And when you jump into this transition, then it's easier for you.
John Manyike 17:16
So how did you adjust from a high-paying career in soccer? Now, all of a sudden, you retired from soccer. You don't have those. Now. You have to live on, I would say, below average compared to a soccer player.
Katlego Mphela 17:34
It's life. You don't have a choice. You have to know now what's important. You know, what comes first. The kids must go to school. There must be food on the table. There must know more of these flashy cars, you know. And we have to keep the lights on. No more these expensive trips. You have to adjust. But you have to be also a strong mental leader to adjust to that. It's different. It becomes difficult because you used to do nice things, you know, like, example, when you were in the national team, you fly first class. You fly all these countries. You sleep in this fancy hotel. You meet all these different kinds of people. And you also have packs like, I can go to that Capello. And they see me then.
John Manyike 18:35
They close the whole.
Katlego Mphela 18:36
I go in for free inside. So after playing soccer, these things, they fade away. And now you have to face the reality of life. You have to live like a normal being. But as I said, you must be strong mentally, and you must understand that it's life and you live. You move on.
John Manyike 18:57
Have you ever thrown a big party in your days as a soccer player? What's the worst, or rather, the top dollar you've ever spent on a party?
Katlego Mphela 19:10
I was never someone who likes parties. We like friends. We go out. And back then, alcohol was not expensive. I only had two friends in my life. The one passed on. The other one is to move back to Mohlakeng. I think the expensive trip we did was Cape Town. We spent about 22 grand’s for the three of us, some flight accommodation and entertainment.
John Manyike 19:43
Okay, all right.
Katlego Mphela 19:44
So back then, there was a lot of money at that time.
John Manyike 19:49
Okay. So in your opinion, I mean, what do you think the current crop of soccer players should do when it comes to finances so that they don't find themselves in a compromised situation after retiring?
Katlego Mphela 20:05
I think we have one problem here. Do they take advice? Do they want to listen or not? But financial literacy is very important my brother. You have to understand the principles of money. You go to your rugby, you go to your cricket, you know other, I won't say white spots, but, you know, these sports codes I'm talking about, you never hear of these stories. You never hear of these stories. So it means there's a system they're using or there's a system, which I think also it comes with education. Education is very important when it comes to money. You must understand the value of money. But honestly speaking or fairly speaking, this generation, I've seen a lot of guys investing. I see guys buying farms, I see guys buying trucks. I see. So it means they're learning. It means they want to do it you know, they want to break the curse. So it's a good thing. I just hope they're not doing it for social media. You know, I just hope that it's true what they do and what we see in social media and you know it will help the next generation as well. So, as I said, the most important thing is to understand how this money thing. I mean, “Old Mutual” as well, you have these policies that can protect these people. You can do something about it. You know, go to the clubs and force these guys to invest their money.
John Manyike 21:41
But you know, when you force a person to invest, they'll go and cash in. They'll go there.
Katlego Mphela 21:45
They'll cash in. But you know, when I went overseas, I learned something there. I didn't understand. When I got there, obviously get signed and then, “Oh, this is your money, this is what you get and this is what you understand.” But end of the month, the pay slip comes.
John Manyike 22:01
It looks different.
Katlego Mphela 22:03
And it is written in a foreign language, what’s going on? I called my agent and explained to him. that's when he explained to me, that this is how they do it in Europe, the whole Europe. You have your salary, you have your tax, you have your retirement, you have your insurance, they will take it whether you like it or not. Because of why? When you retire, you can claim this money, only when you retire. You can't cash in. Only after when you retire with your injury or whatever, only when you stop football, this is how you're going to get. Even if you can leave, go play to China or everywhere. You played in Europe, certain team, you can always claim that to the FA. And I've seen a lot of guys from Zimbabwe, Zambia, they're living well. After they put in money. Because they take it by force. Not by force, but it's a rule. It's a must, the standards. So I don't know if South Africa can introduce that, but I don't think it will work you know. I don't think it will work.
John Manyike 23:10
Now there has to be willingness especially.
Katlego Mphela 23:15
But also the agents, and I think soccer players have anthologies. You have people, you can't tell me everyone is around you is not smart enough to help you invest. So I think agents as well, they need to step in, not just to take. They need to help the guys as well, because they understand these things.
John Manyike 23:38
Okay, one more thing. I mean, at some point, you were working as a sales rep at the car dealership, but then later on you moved away from it because you're pursuing other options. And what were your experiences there? But I hear you are a good salesperson there.
Katlego Mphela 24:00
One thing I learned there is it's more similar to playing soccer because you deal with people, engage with people all the time. But it needs patience, my brother. It needs patience. And it's hard work. You are always on your feet. Sometimes you find difficult customers calling, because now you work on sales. You have to do your commission to get money. So it was something different that I learnt, but I knew the industry. People don't understand. I knew the industry because of my older brother. My older brother is into cars, you know, so I've always known about how it works and stuff. And he was the first person that said, since you now sitting, not doing anything, look into this. You can make a lot of money. And then that's when the VW thing came about. But what I learned there is like, you have to be patient with people. You have to know your story. You have to understand. If I'm selling you this glass, what's in this glass, what this glass can do? So, it's a lot of work, but I enjoyed it. It was fun, and it opened other doors for me that I didn't understand. Now I can do anything I want because I'm not scared.
John Manyike 25:16
Your confidence is there.
Katlego Mphela 25:17
You can say, come be a cameraman for me. I'll come. Because of that fear what will people say because he was a soccer player? So, it was a nice experience.
John Manyike 25:31
Second last question. And not that it's a bad thing. So in your entire life, you've never gotten married or have you ever tried?
Katlego Mphela 25:46
Almost. I was engaged twice. It didn't work out.
John Manyike 25:52
If you were to give a financial tip or tips to the current soccer players, what would that be? Especially the young ones getting into the industry and those who are nearing their retirement age in soccer.
Katlego Mphela 26:07
I'll say, gents, saving money is not enough because you save money, put it in the bank and you'll get it like that you know. Go into business you know. And when you go into business, research is important because at the end of the day, you'll end up losing money because you didn’t do your research, you're excited about investing in this certain business and then go to school. I think soccer players, we have a lot of time on our hands and people don't understand that. They think we work the whole day. Think you train 3, 4 hours a day. You’re done. You take your nap, you can always study online, you know, education is very important. Especially when, in this career, because when you on hard times, when you fall on hard times, you can always fall, have something to fall on you know. So I think short courses are there. They'll also help you to understand how to use your money and associate yourself with good people. I say, good people, leave friends. You don't need a lot of friends you know. And then again, I think knowledge is important or a partner, when you're into soccer, when you're playing soccer, I think it's important. You only sing now. Overseas, they do it. That's why these guys, they focused. They perform working week out, they're consistent because, you know, you're focusing on one partner, someone who's going to take care of your needs, someone who's going to, you're not going to get worried about small things or being all over, you need to rest, you know. And also don't forget where you come from. I mean, where you come from. That's the most important thing. Because when things are not going well, that's where you going to end up. And you'll need people from there because those people are the same people that helped you to be where you are.
John Manyike 28:09
Man, thanks for the chat. I trust that listeners and viewers who follow “On The Money” show will pick up a couple of lessons from there. But more importantly, just to highlight the need to speak to a financial advisor, because you can't know everything. If you're a doctor, if you need legal assistance, you go to a lawyer. But if you need to plan your finances, speak to a financial advisor.
Katlego Mphela 28:35
I think financial advisors are very, very important, are very, very, very important in this soccer industry. They're very important. They really need them. So I don't know if “Old Mutual” must look into it and try to do something you know. I don't think all of them will want to listen to you or engage with you, but I think you can help a few.
John Manyike 28:59
Awesome. That's Katlego “Killer” Mphela aka Manyoni, thanks for coming man.
Katlego Mphela 29:10
Thanks for inviting me. Sure sure.
Johan Manyike 29:13
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