Just days after the Lions Super Rugby franchise was ejected from the 2013 Super Rugby competition, the Golden Lions Rugby Union were dealt another crippling blow as they will have to pay millions of Rands in outstanding franchise fees to their partners in the Lions franchise, the Leopards and Pumas Rugby Unions.

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Retired Judge WJ Hartzenberg, the presiding official in the Arbitration hearing, ruled in favour of the two smaller unions in a decision that will could cost the Lions more than R5.5 million rand over the next few weeks, and more if they delay in making the payments.

With rumours already of the Lions being cash-strapped, and struggling with the prospect of little or no international competition next year in Super Rugby, the ruling – which was done with costs – will come as a massive body blow to Lions president Kevin de Klerk and his fellow officials at the Union.

Judge Hartzenberg ordered the Lions to immediately pay the amount of R2 565 000 to the Leopards Rugby Union in respect of franchise fees owed to it for the 2008, 2009 and 2010 seasons when they were part of the Cats and Lions franchise.

The Pumas chose to write off debt they had at the Golden Lions with their share of the award, but both unions are in for further payments as the division of the franchise fees for 2011/12 still need to be determined.

Furthermore, the R2.5-million award to the Leopards will accrue interest “at the rate of 15,5% from the date of the arbitration agreement, 31 May 2012, until date of payment” according to the ruling.

The franchise fees for 2011/2012 need to be determined as a matter of urgency, and Judge Hartzenberg ordered the parties to find an amicable agreement on the division of R6.6-million for the two years within two days from the judgement. If no agreement can be made in that time period, he instructed the South African Rugby Union to step in and determine how the money should be divided between the three unions.

However, the perplexing thing about the entire saga, is that none of the three parties had any documentation to support the agreement or deny it in any way, and in the end it was the Lions’ payment of fees over the first three years that ultimately proved there was an agreement, despite the Lions denying this altogether.

As in the Saru decision on the Super Rugby franchise, the Lions offered no alternative nor defence, nor had anyone testify in their defence in the arbitration hearings, while the Leopards were represented by their president, Advocate Andre May and the Pumas by their president Hein Mentz.

Others to testify in the arbitration included Leopards CEO Louis du Plessis, former Lions president Prof Jannie Ferreira and Saru’s head of legal affairs Christo Ferreira.

Despite the Lions denying there was ever a partnership, Judge Hartzenberg clearly found the opposite, stating in his judgement: “The question which again presents itself is, how on earth could the Third Defendant (SARU) succeed in presenting a Rugby competition, through five franchises, if the parties, to the franchise agreements, were not bound by some or other agreement. It is clear that the parties regarded the agreements as binding on them,” the judgement reads.

The Lions are keeping mum in reaction to the judgement, with no reply to phone calls to acting CEO Ruben Moggee and emails to the Union.

The Leopards and Pumas put out a joint statement confirming the decision, and saying they “remained committed to making the franchise work, despite the fact the Lions will not be playing in the Vodacom Super Rugby series in 2013.”

Saru Chief Executive Jurie Roux said they were waiting on the confirmation of the decision and a copy of the decision of the arbitrator. “Once we have had time to study that, we will reply through the appropriate channels.”