Unpaid player wages continue to mar the cash-strapped Eastern Province Rugby Union.
The union is facing a deadline from the South African Rugby Players Association (SARPA) to make player payments by Tuesday.
After problems over payments arose again at the end of October, SARPA issued a written 10-day notice for the Kings to pay outstanding salaries or face action against them.
The cash-strapped union was unable to pay players for several months earlier in the season after a lucrative sponsorship deal failed to materialise.
The union’s president Cheeky Watson reportedly travelled abroad, where he was believed to be looking into delays over a long-touted new sponsorship.
The men from Port Elizabeth had a torrid Currie Cup season, winning only 2 matches to finish 2nd from bottom on the overall Log.
They will also compete as the 6th South African franchise in an expanded Super Rugby season from next season.
(Sport24)
Toulon’s Boudjellal wants to buy the Southern Kings franchise – dead in the water:
Mourad Boudjellal
Reports that Toulon’s millionaire owner Mourad Boudjellal wants to buy the Southern Kings franchise are a ‘stillborn baby’.
While making for interesting reading, the reported conditions attached to the sale of the Kings by Boudjellal have been described as “ridiculous and laughable”.
However, more importantly, the sale would be in breach of SARU’s constitution.
The reported Toulon offer, if true, has overshadowed the ongoing crisis at the franchise that will return to Super Rugby in just over 3 months.
It has taken the spotlight away from the real issues – the attack by the Minister of Sport and Recreation, Fikile Mbalula, over the apparent failure of the Kings Academy to produce the promised ‘flood’ of black players and the failure of a R 200 Million sponsorship to materialise.
EP Rugby President Cheeky Watson departed abroad last Friday where, among other issues, he would be meeting with the sponsors over the “delayed funding”.
EPRU Executive Member, Vernon Stuurman, standing in as spokesperson for the union while Watson is abroad, said the funding would be a “game changer” for both the professional body as well as the union.
Watson was unavailable for comment on the Toulon offer, while Stuurman did not address the issue in a statement.
However, a quick glance at SARU’s constitution makes it clear that even if the Toulon owner, Boudjellal, were to become a “partner” – as opposed to the sole owner – he would not be allowed to own a controlling share in the Southern Kings.
The portion of the SARU constitution that deals with ‘OUTSIDE INTERESTS IN MEMBERS AND COMMERCIAL COMPANIES’ says:
21.1 No province shall permit any person, club, body corporate, partnership, trust or any other entity (all of which are hereinafter referred to as an entity) or group of entities, acting alone or in concert, directly or indirectly, to acquire an interest of whatever kind in that province without SARU’s prior written consent, which consent shall not be unreasonably withheld.
21.2 For the purposes of clause 21.1, the concept “interest” is to be widely construed and will include, without limitation, the holding of any number or class of shares or debentures, or any other interest, in a commercial company, but shall not include loans.
21.3 No province shall permit any entity or group of entities, other than a member itself, acting alone or in concert, directly or indirectly to own or control a commercial company.
21.4 For the purposes of clause 21.3, the concept “ownership” includes, but is not limited to, the holding or having of a beneficial interest in a commercial company of fifty percent (50%) or more.
21.5 For the purposes of clause 21.3, the concept “control” means the ability of an entity, or group of entities, by whatever means, to procure that the affairs of a commercial company are or may be conducted or influenced in whole or in part in accordance with that entity’s, or group of entities’, wishes.
21.6 An entity, or group of entities, will be deemed indirectly to own or control a commercial company if, pursuant to an agreement or understanding, whether formal or informal, such entity or group of entities, acting alone or in concert, obtain or secure or are able to obtain or secure ownership or control of a commercial company, in whole or in part.
21.7 For the purposes of clauses 21.3 to 21.6, the concepts “indirect ownership” and “control” are to be widely construed in order to give effect to the underlying intention that no entity, or group of entities, acting alone or in concert, shall control, or be in a position to control, either directly or indirectly, any commercial company, in whole or in part.
Then there are those ridiculous clauses, added by Boudjellal, that further makes this a stillborn issue.
Boudjellal insisted on getting rights to 2 Springbok Tests per year – 1 of which is played at the Nelson Mandela Bay stadium in Port Elizabeth and the other in Toulon.
The eccentric Frenchman also wanted SARU to take over all the Kings’ debts and he also wants all money from the broadcast rights to be paid to him directly.
(rugby365)
That of course, is the danger of privatising Rugby Unions and Super Rugby Franchises… getting mad men with far too much money from all over the globe interested in buying the Franchise, and turning it into a merry band of mercenaries in order to achieve results.
But how much would THAT do for bringing local players through, for making transformational targets reachable or achievable?
I’ve long been an advocate of Privatising rugby in SA… till this made me sit up and notice what could happen.
I still believe Private Enterprize would be better run and administered than the current situation, but one would have to re-think the actual model and it’s format.
grootblousmile wrote:
What about SAIL owning some of the franchises?
grootblousmile wrote:
Players are already moving around between franchises, it would be no different
grootblousmile wrote:
If he bought the Bulls and added some good players from Aussie and NZ and won the S16, do you think he would be able to fill Loftus week after week like is used to be?
Success breeds success
grootblousmile wrote:
A good local player would always come through, especially now with the longer Currie Cup season
As for transformation, if he’s good enough he’ll get a contract regardless of colour
Unfortunately in a privately owned franchise there would be no place for the government’s version of social engineering “window dressing”
Talking about “buying success”…
Hands off Pocock you slimy Frogs!
And that applies to Cheika too, Poms!
http://www.canberratimes.com.au/rugby-union/brumbies/french-clubs-circle-wallabies-and-brumbies-star-david-pocock-as-signing-target-20151109-gkusp8.html
2 – 5 @ Victoriabok:
Sail owns a minority share, never more than 49% of any Union or Franchise team in SA…. in keeping with the SARU Constitution.
See carefully what I said in Comment No 1, I have ALWAYS been a big Advocate for Privatizing Rugby in SA, so believe me if I say I also do see the benefits in it.
But, as for now, Boudjellal won’t be able to buy a Team in SA outright or in a majority shares situation.
3 @ Victoriabok:
You say it would be no different… just have a look at Toulon, there are far more foreign players in the Toulon squad than actual Frenchies… and THAT I do not want in South Africa!!
4 @ Victoriabok:
Similar to my previous answer, I do not want the Bulls full of foreigners, 1 or 2 maybe yes, to alleviate a serious shortage or to be a marquee signing… but a whole lot of them, no thank you!
5 @ Victoriabok:
Unfortunately we DO SIT with transformation goals and a duty to broaden rugby and we DO have to appease the Government of the day, so in those terms alone, it is dead in the water and unfeasable!
Phweeeew, the plot thickens!
It seems the latest allegation is that Nelson Mandela Bay Rate Payers are footing the bill for the EP Kings!
There also seems to be a High Court case / application pending against Access Management who runs the Nelson Mandela Bay Stadium on behalf of the Municipality…
Of course we know that Rian Oberholzer heads up Access Facilities and Leisure Management Pty (Ltd), shortly referred to as Access Management.
This is a boil just waiting to burst!
So, Access Management filters away some of the Rate Payers money, thus enriching Rian Oberholzer… then some gets diverted onto EP Kings and Cheeky Watson and Chippa Unites Soccer Club…
If I was a PE Rate Payer, I’d be kakking in my pants about now… hehehe
This is so sad. IF the Kings can get rid of Cheeky, then they may be able to become a viable union. But they have had such a chequered history, it will take a very strong and committed individual to transform the union from shamateur to vaguely professional.
EP Kings apparently missed the midnight deadline to pay Player Salaries, therefore all EP Kings players could be considered Free Agents to take up other offers.
Will we see an exodus?
grootblousmile wrote:
That is really such a pity for all those players who have stayed around there for a while in spite of all the money issues they have been said to deal with. What does this mean for the Kings and Super Rugby, will they still take part, so much of next year’s tournament has already been organized with them considered to be in it?
12 @ Bullscot:
They’ll just be bailed out again… and again…
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