EP Kings in seemingly happier days

The Kings financial saga just seems to get bigger and bigger, the boil getting larger and larger… the bubble waiting to burst.

This week alone we have already featured more articles about the latest financial crisis, now we hear that the EP Kings have most probably been funded by money originating from the pockets of Rate-payers in the Nelson Mandela Bay Metropolitan Municipality.

In addition, the SARPA deadline demand for the EP Kings players and staff salaries to be paid by midnight on 10 November has come and gone and the salaries have not been paid, effectively making each and every EP Kings player a free agent to source alternative placement to continue their rugby careers.

Have the Kings been funded by Taxpayers?

In the latest development in the ongoing saga surrounding the Eastern Province Kings’ cash crisis, it is claimed that taxpayers’ money have been used to foot the bills.

Players have gone on strike twice this year over unpaid salaries – in June / July and again in September.

The Eastern Province Kings management have now been issued with an ultimatum by the South African Rugby Players Association (SARPA) about further action over unpaid salaries for October.

It is claimed the Kings were ‘rescued’ when taxpayers’ money was used to pay outstanding salaries.

Kobus Gerber, of the Nelson Mandela Bay Ratepayers Association and a spokesman for trade union AfriForum in Port Elizabeth, accused the Eastern Province Rugby Union of using ratepayers money to pay the running costs of the Kings and the union.

He went as far as saying “this been ongoing for a number of years”.

Gerber claims an investigation into Access Management, the Nelson Mandela Bay Stadium operator, brought to light that the Nelson Mandela Bay Metro is channelling ratepayers’ money through Access to pay the running costs of the union and pay players’ salaries.

The EP Rugby Union denied any wrongdoing and said all their financial transactions are based on ‘sound business ethics’.

Vernon Stuurman, an executive member of the EPRU and standing in for President Cheeky Watson, said the union was a “responsible anchor tenant of Access Management”.

Watson is currently abroad, where – according to an earlier Kings statement – he will be speaking to a sponsor about the delayed funding.

Access Management have also denied any wrongdoing and confirmed that it was contracted by the Nelson Mandela Bay Metro to operate the stadium and to assist its “anchor tenants” in whatever way possible.

And Access Management also confirmed they purchased the commercial rights in respect of the EP and Southern Kings from the Eastern Province Rugby Union.

Gerber said he had a meeting with Watson before his departure, in which they addressed numerous issues – including “the upcoming High Court Application against the irregular re-appointment of Access Management”.

“AfriForum has been holding back on the High Court application against Access Management in order to provide Watson with the opportunity to secure a sponsor for EP Kings,” Gerber said in a statement.

“This would have ensured that rugby and soccer would continue undisrupted in Nelson Mandela Bay Metro, while court proceedings are underway.

“We entered into negotiations with sponsors to prevent the EP Kings losing players for next year’s Super Rugby competition.”

Statement by Vernon Stuurman, executive member, EPRU:

TUESDAY 10 NOVEMBER 2015

“The Eastern Province Rugby Union has noted media reports on allegations made by the Ratepayers Association and AfriForum Port Elizabeth of money being paid to Access Management to fund the EP Kings.

“As the finance referred to is said to have come from the Nelson Mandela Bay Metropolitan Municipality, EP Rugby regards itself as a major stakeholder playing a particular part in the space of participatory governance.

“As a responsible anchor tenant of Access Management, we take pride in our business relationship with them which is built on sound business ethics.

“Anyone who wishes to imply differently should do so on their own.”

Access Management statement in response to Nelson Mandela Bay Ratepayers Association allegations:

10 November 2015

Access Facilities and Leisure Management Pty (Ltd.) (“Access Management”) acknowledges having read the statement issued by the Nelson Mandela Bay Ratepayers Association titled EP Kings cash crisis is true and real on 9 November 2015.

Access Management wishes to confirm that it is contracted by the Nelson Mandela Bay Municipality (“the Municipality”) to operate the Nelson Mandela Bay Stadium (“NMB Stadium”) on its behalf, and to provide support to the Anchor Tenants (namely EP Kings Union and Chippa United Football Club).

This contract was until June 2015 and was extended by the Municipality for a year or until a new operator is appointed, whilst the tender process for the awarding of the stadium operator contract is being prepared by the Municipality.

All assistance given by Access Management to either of the NMB Stadium’s anchor tenants is – and has always been – rendered in line with the stipulations of the Operator’s contract and such commercial agreements approved by and entered into with the Anchor Tenants from time to time.

“Any funds utilised by Access Management in the running of the NMB Stadium, are contained in an expense budget which is presented to and approved by the Municipality.

“The NMB Stadium operator is, contractually an Agent of the Municipality and therefore operates the NMB Stadium budget on behalf of the Municipality.

“The documentation which is being sought by NMBRA and AfriForum as referred to in their statement, is in the possession of the Municipality.”

Statement by Kobus Gerber, Nelson Mandela Bay Ratepayers Association and Afriforum Port Elizabeth:

“Re: EP Kings cash crisis is true and real.

“The NMBRA and AfriForum PE conducted an investigation into Access Management, the NMB Stadium operator, and it came to our attention that the NMB Metro is channelling ratepayers money through Access to pay the running costs of the EP Kings and the players and that this been ongoing for a number of years.

“We has had a number of meetings with some EP Board Members and has given them proof of ratepayers money being paid over to Access for the Kings from the Metro.

“I also had discussions with Danny Jordaan [the mayor of Nelson Mandela Bay Metro] regarding rugby and soccer in the Metro and he shared our concerns and agreed to assist in finding a solution to ensure that the financial situation of the EP Kings receives urgent attention. I have also been in contact with SARU and I met with Cheeky Watson last Thursday to discuss the following:

1) The financial situation of the EP Kings and the potential sponsorship that he has been promising since June this year;
2) The reason for the delay with the sponsorship and we have insisted on proof of the sponsor which he refused to give;
3) When will the outstanding salaries to players and officials be paid of which some are up to three month in arrears;
4) The reason for him using ratepayers money to pay running costs and the salaries of the EP Kings for a number of years;
5) That we are busy negotiating with sponsors and would he step down to allow a new sponsor to take over;
6) The upcoming High Court Application against the irregular re-appointment of Access Management and the implication of such application on the future of EP Rugby.

“Cheeky Watson did not handle the meeting well and told me that he will discuss this with the EP Board Members on his return from Australia where he will be attending a family wedding. He never mentioned that he will be meeting any sponsor as quoted in the media.

“AfriForum has been holding back on the High Court application against Access in order to provide Watson with the opportunity to secure a sponsor for EP Kings.

“This would have ensured that rugby and soccer would continue undisrupted in NMB Metro while court proceedings are underway. We entered into negotiations with sponsors to prevent the EP Kings losing players for next year’s Super Rugby series.

“Oregan Hoskins’ recent visit to Port Elizabeth.

“Hoskins said he had full confidence in the current leadership under EP Rugby President Cheeky Watson: ‘We will not deny that there have been cash flow challenges this year, but what is often overlooked is that we have always met these challenges head on, and have been able to overcome them’.

“He lied to Hoskins and did not overcome the financial challenges, he received help from the Metro by using ratepayers money.”

Kings facing player exodus

The Eastern Province Kings, and their Super Rugby version the Southern Kings, could be faced with a player exodus this week.

The 10-day deadline for paying the players’ October salaries expired at midnight (Tuesday 10 November) without any action from the Kings management.

Nyaniso Sam, a spokesman for the South African Rugby Players Association, confirmed that no salaries were paid to players by the midnight cut-off.

“As a result the players can now legally cancel any existing contracts with the Eastern Province Rugby Union and take up offers elsewhere,” Sam said.

“Players who do not have offers from others franchises still have the option of staying away from training until such time as their salaries are paid in full.”

The Kings’ supporters club, the EP Kings Army, claimed stalwart Tim Whitehead will be the 1st player not to report for duty when the team starts Super Rugby pre-season training next week.

The players have been on a post-Currie Cup break.

Whitehead was one of the leading figures in the white armband protest last month and has been at loggerheads with the boardroom brigade over his actions.

The Eastern Province Kings, for the 3rd time this year, took to public protest over unpaid salaries – this time in a match.

The EP Kings matchday 22 wore white armbands in their 27 / 48 Currie Cup loss to the Vodacom Blue Bulls at Loftus Versfeld on Friday 2 October.

This move was in support of non-playing squad members who at that stage had not received their salaries for the month September. There were also protest (strike) action over unpaid salaries in June, July and August.

Some salaries were eventually paid, with reports claiming the Nelson Mandela Bay taxpayers’ money were used to foot the bills.

And the October salaries have still not been paid.

There is also a court case pending in which the Nelson Mandela Bay Ratepayers Association and trade union AfriForum – who revealed the taxpayers saga – are challenging the legality of the re-appointment of Access Management as operators of the NMB Stadium.

With EPRU President Cheeky Watson currently abroad – either attending a family wedding or speaking to giant oil and mining conglomerate in Australia about a potential sponsorship, depending on which reports you believe – executive member Vernon Stuurman has been acting as a spokesman.

However, his responses have been vague at best, opting to distance the EPRU and Kings from any wrongdoing, rather than addressing the actual cash crisis.

Other reports suggested that the reported R 200 Million sponsorship Watson has been boasting about will be substantially less when / if it eventually materialises.

Some media reports suggested it will be less than R 150 Million and will be paid out over 5 years. The 1st payment could be as much as R 40 Million, but thereafter it will be no more than R 25 Million a year.

Watson has been unavailable for media comments.

There are reports that players like Bulls discard Jurgen Visser are keen to head to Port Elizabeth, but without a confirmed sponsor and unpaid salaries, the exodus might be much bigger than the list of ‘new signings’.

(rugby365)