SA Rugby aiming to save R1.2billion before end of 2020, starting with 25 per cent wage cuts
South Africa Rugby have announced 25 per cent pay cuts just six months after the Siya Kolisi-skippered Springboks lifted the World Cup for the third time in their history. Rassie Erasmus’ side defeated England in the final in Yokohama but the coronavirus has since massively impacted on SA Rugby’s economic outlook.
Looking to make savings of R1.2billion (£53.4m), a 21-day window was opened for players and staff to cancel their contracts with immediate effect. Some players opted to do this, hooker Malcolm Marx among the list of departures after securing a Top League deal.
However, those who have opted to remain in the fold locally in South Africa – including the likes of winger Makazole Mapimpi who spurned a hugely lucrative offer from Japan – will now lose a minimum one-quarter of their salary as rugby officials try to better balance the books.
Explaining how they hoped to save R1.2bn by the end of 2020, a South Africa Rugby statement said: “The economies will be achieved by reduced expenditure following the cancellation of competitions (49.7 per cent of savings), cuts in other operational budgets (37.3 per cent) and in salary reductions (13 per cent).
“The plan was formulated and agreed by bodies representing SA Rugby, MyPlayers (the players’ representative organisation), Sport Employees’ Unite (employees’ trade union) and the South African Rugby Employers’ Organisation (SAREO – representing the provincial unions).
“The salary cuts amount to 25 per cent of total remuneration across the industry, including all employees, players and officials – although persons earning below R20,000 per month were exempted from any cuts. Higher earners have agreed to cuts on a sliding scale of up to 43 per cent.”
Thankful that the budget-cutting measures had been agreed, SA Rugby CEO Jurie Roux added: “It was a complex process to find alignment with a number of entities representing 1,396 people in the South African rugby industry but throughout everyone collaborated fully.
“The group identified our collective areas of financial risk and what savings had to be made and then identified a plan to mitigate those risks. It has meant salary cuts for many, but we have put together a plan that will ensure the industry will be positioned and resourced to get straight back to action just as soon as we are permitted.
“From the moment we went into lockdown we have been preparing and workshopping internal guidelines and protocols for return to play and return to work. Those are complete and are ready to be actioned as soon as we get Government’s go-ahead.
“We have presented our case to the Minister of Sports, Arts and Culture and believe we have a strong case. We do not run hospitals or build ventilators and we are not an industry that is critical to the South African economy, but we do believe that we add huge value to national life in other ways.
“The sight of the Springboks running out for the first time since winning the Rugby World Cup would be a powerful milestone on the nation’s journey to the other side of this crisis as well as being a boost for national morale.
“While the return to play of our provincial teams – even if it is behind closed doors – would similarly be hugely beneficial to a nation in lockdown. We understand that there are bigger agendas at play but believe the risk of transmission could be well managed by our protocols. We trust the minister and Government will view our case seriously.”
The Industry Savings Plan came into effect on May 1 and is initially scheduled to run until the end of December.
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Hi, Dave here. Happy to answer questions 🥰
3 Go to commentsDon’t think that headline is accurate. It’s great to see Aus doing better but I’m not sure they’ve shown much threat to the top of the table. They shouldn’t be inflating wins against the lousy Highlanders and Crusaders either.
3 Go to commentsSuch a shame Roigard and Aumua picked up long term injuries, probably the two form players in the comp. Also, pretty sure Clarke Dermody isn’t their coach. Got it half right though.
3 Go to commentsOh the Aussie media, they never learn. It’s simple to see what’s going on. The Aussie teams are settled, they didn't lose any of their major players overseas. The Crusaders and Chiefs lost key experienced All Blacks, and Razor in the Crusaders case, and clearly neither are anywhere near as strong as last year (The Canes and Blues would probably be 3rd & 4th if they were). The Highlanders are annually average, even more so post-Aaron Smith and a big squad clean out. The two teams at the top? The two nz sides with largely the same settled roster as last year, except Ardie Savea for the Canes. They’ve both got far better coaches now too. If the Aussies are going to win the title, this is the year the kiwi sides will be weakest, so they better take their chance.
3 Go to commentsThe World Cup has to be the gold standard, line in the sand. 113 teams compete for what is the opportunity to make the pool stages, and then the knockout games for the trophy. The concept is sound. This must have been the rationale when the World Cup was created, surely? But I’m all for Looking forward and finding new ways for the SH to dominate the NH into the future. The autumn series needs a change up. Let’s start by having the NH teams come south every odd year for the Autumn/Spring series games?
3 Go to commentsWhat’ll happen when the AI models of the future go back in time and try to destroy the AI models of the past standing in their way of certain victory?
41 Go to commentsThanks, Nick. We (Seanny Maloney, Brett and I) just discussed Charlie as a potential Wallaby No 8, and wondered if he has truly realised how big he is in contact (and whether he can add 5 kg w/o slowing down). Your scouting report confirms our suspicions he has the materiel. No one knows if he has the mentality (as Johann van Graan said this week about CJ, Duane and Alfie B) to carry 10-15 times a game.
57 Go to commentsHe would be a great player for the Stormers, Dobbo should approach the guy.
3 Go to commentsGood article. A few years back when he was playing for the Cheetahs, he was a quiet standout for exactly the seasons stated here. I occasionally get to see his games in the UK, and he has become a more complete player and in many ways like an Irish player. His work ethic is so suitable to the Leinster game. I wonder if Rassie would have him listed somewhere.
3 Go to commentsResults probably skewed by the fact that a few clubs have foreign fly halves in their 30s, but most teams have young English scrum halves. Results also likely to be skewed by the fact that many teams rely on centres and fullbacks to provide depth at 10, whereas they will need to stock a large number of specialist backup 9s.
1 Go to commentsI really get the sense that when all is said and done, the path of least resistance will end up being a merger of Wasps & Worcester that essentially kills the Worcester Warriors brand and sees Wasps permanently playing at Sixways. I’m not saying that’s what should happen or what I want to happen. I just think it’s the easiest rout to take and therefore, will be what happens. Wasps will definitely return to play first, and I suppose it all depends on if they can find support at Sixways. If people turn up and support Wasps in that community, at that ground, I bet they drop the Sevenoaks plan and just remain at Sixways. Under the radar but not totally unrelated, it looks as though London Irish are going to be brought back from the dead by a German consortium and look set to return, likely to the remade Championship. It’s set to have 12 clubs next season with 14 in 2025/26, what do you want to bet those extra 2 are Wasps and London Irish?
3 Go to commentsThe shoulder is a “joint” with multiple bones. You don’t “fracture” a shoulder, you fracture any one or more of the bones that make up a shoulder.
2 Go to commentsOh dear, bones too suspect to continue?
2 Go to commentsBold headline considering the Canes and Blues are 1 and 2 and the Brumbies were soundly beaten by the Chiefs and Blues. Biggest surprise is Rebels 4 Crusaders 12 - no one saw that coming. If Aus are improving that’s great 👍
3 Go to commentsAnna, You are right, we need to have patience whilst the others catch up to England and France. Also it is the PWR that has been the game changer for England. the RFU put money into that initially at the expense of the Red Roses. I was sceptical at first but it has paid off in spades.
1 Go to commentsI think Matt Proctor became a 1 test AB in the same fixture. Cameron is quality and has been great this season, can’t believe’s he only 27. Realistically how would he not be selected for ABs squad this year. Only Dmac is ahead of him as a specialist 10. With Jordan out, it will come down to where and when Beauden Barrett slots back in, and where they want to play Ruben Love. Cameron seems an absolute lock in for the wider squad though. Added benefit of TJ-Cameron-Jordie combination at 9, 10, 11 too.
1 Go to commentsFarcical, to what end would someone want to pay to keep this thing going.
1 Go to commentsHavili, our best 12 by a mile, will be in the squad, if he stays fit. JB is the most overrated AB in the last 50 years.
61 Go to commentsWe had during the week twilight footy, twilight cricket, tw golf plus there was the athletics club. Then the weekend was rugby 15s plus the net ball, really busy club scene back then but so much has changed and rugby has suffered. And it was all about changing lifestyles.
6 Go to commentsIn the 70s and 80s my club ran 5 Senior sides plus a Vets. Now it is 2 sides with an occasional 3rd team. Players have difficulty getting to training now, not sure why and the commitment is not there. It seems to me more a problem of people applying themselves and not expecting to turn up and play whenever they want to.
6 Go to comments