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.
Comments on RugbyPass
I wonder if Parling was ever on England’s radar as a coach? Obviously Borthwick is a great lineout coach, but I do worry he might be taking on too much as both head coach and forwards coach.
1 Go to commentsJason Jenkins has one cap. When Etzebeth was his age he had over 80 caps. Experience matters. He will never amount to what Etzebeth has because he hasn’t been developed as an international player.
1 Go to commentsSays much about the player picking this gig over the easier and bigger rewards offered to him in Japan. Also says a lot about the state sanctioned tax benefits the Irish Revenue offers pro rugby players, with their ten highest earning years subject to an additional 40% tax relief and paid as a lump sum, in cash, at retirement. Certainly helps Leinster line up the financial ducks in a row to fund marquee signings like this!!! No other union anywhere in world rugby benefits from this kind of lucrative financial sponsorship from their government…
4 Go to commentsTrue Jordie could earn a lot more in Japan. But by choosing Leinster he’ll be playing with 1 of the best clubs in the world and can win a champions cup and URC…..
6 Go to commentsThanks for that Marshy, noticed you didn't say who is gonna win it. We know who ain't gonna win it - your Crusaders outfit. They've gone from having arguably the best Super Rugby first five ever, to having a clutch of rookies. Hurricanes all the way!
1 Go to commentsGeez you really have to question the NRLs ability to produce players of quality. Its pathetic. Dont the 25mil in Aus produce enough quality womens players. Sad.
1 Go to commentsBulls fan here, and agree 100% with the conclusion (and little else) of this article. SA sides should absolutely f-off from the champs cup until we get fair scheduling, equal support for travel arrangements and home semis. You know, like all the european teams get.
23 Go to commentsI’m yet to see why Grace would be an ABs contender. He’s pedestrian and lacks the dominance required of a top flight 8.
11 Go to commentsGee my Highlanders were terrible. They have gone backwards since the start of the season. The trouble began when we left Millar behind to prep as the 10 against the Brumbies and he was disconnected from the team that came back from Aussie. We rested Patchell for that game and we blew an avalanche of ball in good attacking positions in the 1st half. Against the Rebels we seem to of gone into a pod system with forwards hanging off from the breakdown leaving Fakatava to secure our ball!
80 Go to commentsPot Kettle, the English and French teams have done it for years.
23 Go to commentsHas virtually played every minute of previous games. Back row of Li Lo Willie , Grace and Blackadder would be the 1. Crusaders issue is a very average 1st 5 who cannot run. Kicking in general play is also below par They need to put Yong Kemara in. He must have so.e talent for them to bring him down from Waikato. Hoehepa would struggle to play in so.e club sided
11 Go to commentsI hope this a good thing making all these changes!
3 Go to commentsThe Hurricanes are good, especially with a decent coach now. However, let’s be real, the Crusaders and Chiefs are clearly a good degree weaker without the players they’ve lost overseas now. The Canes lost one player. It’s also why the aussie teams ‘seem’ to be stronger.
9 Go to commentsOr you could develop your own players instead of constantly taking from the SH competition and weakening it in the process? With all the player and financial resources these unions have compared to SH countries you’d think they could manage that, or is weakening the SH comps and their national sides an added bonus? Probably.
3 Go to commentsNot so fast Aaron, we might need you in black yet lol. God knows he’d be a lot less nerve-racking than hot and (very) cold players like Perofeta. It’s really a shame Reuben Love isn’t playing 10, we’ve got enough 15 options.
4 Go to commentsAnd those from the NH still seem to be puzzled (and delighted) why NZ’s depth isn’t what it once was. Over 600 NZ players overseas, that’s insane. This sort of deal is why Super Rugby coaches have admitted they struggle now to find enough quality to fill out their squads.
6 Go to commentsArticle intéressant ! La question devrait régulièrement se poser pour les jeunes français originaires de Nouvelle-Calédonie, Wallis-et-Futuna et de Polynésie entre la Nouvelle-Zélande et la Métropole… Difficile pour la fédération française de rugby de se positionner : soit le choix est fait de dénicher les jeunes talents et de les faire venir très tôt en Métropole, au risque de les déraciner, soit on prend le risque de se les faire “piller” par les All Blacks qui, telle une araignée, essaye de récupérer tous les talents des îles du Pacifique… À la France de se défendre en développant l’aura du XV de France et des clubs français dans ses collectivités d’Outre-mer !
3 Go to commentsWrong bay. He needs to come to the REAL BAY which is Bay Of Plenty and have a crack at making the Chiefs.
3 Go to commentsIs Barrett going play full back??? They already have all the centers…
16 Go to commentsForgive my ignorance, I might not fully understand so would appreciate clarification: Didn’t the Bulls have to fly with three different carriers, paid for by the South African Rugby Union, whilst Edinburgh got a chartered flight sponsored by EPCR? Also, as far as I understand it South African teams don’t yet share in the revenue from the competition and are not allowed to host Semi-finals or Finals at home. Surely if everyone wants South Africans to “take the competition seriously” then they must make South Africans feel welcome, allow them to share in the revenue, and give them the same levels of access as the teams from the other countries. Just a reminder that South Africa has a large and passionate Rugby audience. Just by virtue of our teams being a part of these competitions means that more of us are likely to watch the knockout games, even if our teams haven’t qualified. It would be silly to alienate such a large audience by making them feel unwelcome.
23 Go to comments