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Springboks World Cup win helps SA Rugby report tiny post-tax profit of R8.5m (£400k)
SA Rugby boss Jurie Roux has claimed that his country’s rugby administration would have been ruined had the financially devastating coronavirus pandemic struck three years ago. He claimed at Wednesday’s AGM that good accounting in recent years – along with the 2019 World Cup triumph by the Springboks – saved them from oblivion.
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“If this crisis had hit us two of three years ago it might have been a very different story,” said the chief executive. “The pandemic has had the effect of tearing up all our approved budgetary plans but we have taken an aggressive approach to the potential impact of the virus.
“We have agreed our industry financial impact plan, which will cut R1.2bn from the budget of the entire South African rugby industry if required. It will be painful to endure for all rugby businesses, but it will mean that we will walk from the burning building still intact.
“The measures that we have implemented in recent years allowed us to deliver a very satisfactory result at the end of 2019. We improved our overall solvency and financial position through fully impairing all loans, investments or receivables where the recovery of such was in doubt.
“That meant that when the crisis struck our improved financial position allowed us the required time to formulate corrective measures to address the financial challenges unencumbered by any underlying weakness that could have worsened what is an extremely threatening situation.
In 2018 @ettasreynecke was admitted to ICU 3 times for 3 different reasons, but it didn't stop him taking up MMA (whilst learning to talk to again)
This is his remarkable story, as told to @heagneyl https://t.co/Fox7vj0m5Y
— RugbyPass (@RugbyPass) May 31, 2020
SA Rugby reported a post-tax profit of R8.5m (£400k) at the end of 2019. Revenues increased by 2.5 per cent to R1.29bn (2018 – R1.26bn) with increases in broadcasting, sponsorship, grants, insurance proceeds, royalties and the HSBC Cape Town Sevens event offset by a reduction in guarantees due to fewer Test matches, Rugby World Cup performance obligations and the closure of the Springbok Experience rugby museum.
Roux said operations continued to be funded by way of a bank overdraft for significant parts of the year and solutions had to be found to address a number of issues including the loss of a broadcasting partner, budgeted lottery income that did not materialise, further loan impairments and the R62m required to honour player and management performance commitments for winning RWC 2019.
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However, the significant RWC 2019 obligation was offset by insurance mitigation plans while the investment in the rugby department (R372m in total) was rewarded with a victory in Japan.
Financial support for the 14 member unions and player welfare, through the use of player imagery and injury insurance, accounted for another 32 per cent of operating expenditure (R275m).
Roux added: “One of the benefits of our approach is that we go into this crisis with a level of comfort that we can expect the financial support of our bank and key stakeholders in these difficult times.
“We reduced the overdraft from R68m to R7m but we have subsequently agreed an increased facility for 2020 to manage the inevitable cashflow issues create by the pandemic.”
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In an electronic ballot for positions on the executive council, Pat Kuhn and Jannie Louw were elected for four-year terms and Schalk Liebenberg for a two-year term (the latter filling a vacant position). Francois Davids was re-elected as deputy president for a four-year term in a contest with Jerry Segwaba.
In other business, accepted into associate membership of the South African Rugby Union were: the South African Rugby Referees’ Association; the South African National Department of Correctional Services Rugby Association and the South African National Police Services Rugby Association.
'It did turn sour'
Ed Griffiths' behind the scenes insight into the Springboks 1995 #RWC win ??, the back story to the Mandela moment, confronting flag-waving fans, holding clothes hangers for luck & the lost opportunity of it all
– writes @heagneyl https://t.co/XpSHESE4cF
— RugbyPass (@RugbyPass) May 24, 2020
Comments on RugbyPass
Gee 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!
72 Go to commentsPot Kettle, the English and French teams have done it for years.
19 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
4 Go to commentsI hope this a good thing making all these changes!
2 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…
15 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.
19 Go to commentsFirst of all. This guy is very much behind the curve. All the bleating, whingeing, whining and moaning took place days ago already. Not adding anything to the topic other than more bleating, whingeing, whining and moaning. 🍼 Second of all, not one mention of the fact that South African teams can’t get home semi finals or finals. The tournament was undermined and devalued by the administrators. 🤡 Thirdly, football teams often have to juggle selections in mid week games, premier games, champions league games etc. and will from time to time prioritize certain titles over others. 🐒 And lastly FEK Neil, and anyone else for that matter, for insisting on telling teams how to manage themselves. If they make what is largely a business decision that suits them and doesn’t suit you - tough shite. 💩 It’s not rocket science as to why the Bulls did what they did. If this guy is too slow to figure it out (and is deliberately not mentioning one of the key reasons why) then he isn’t a journalist. He should join the rest of us pundit plebs in comments section. 🥴
19 Go to commentsSo the first door to knock on Rob is Parliament followed by HMRC. The Irish Revenue deliver a 40% tax relief rebate on the HIGHEST EARNING TEN YEARS of every pro Irish rugby players contract earnings at retirement. That goes a long way to both retaining their best talent and freeing up wages for marquee players. Who knows, if that had been in place in the UK, you might not have been able to poach Hoggy and Jonny Gray from Glasgow…!!!
3 Go to comments1. True, if that “free” ticket means access to all but the prized exhibit - EVIP only. SA cannot host semis, even if they’ve earned it (see Sharks vs ASM Clermont Auvergne at… Twickenham Stoop). 2. Why no selective outrage over Lyon doing the exact same thing a week earlier? Out of all the countries France send the most “B teams”, why nobody talking about “disrespect” and “prioritising domestic leagues” and “kicking them out”? 3. Why no mention of the Sharks fielding all of their Springboks for the second rate Challenge cup QF? No commitment? 4. Why no mention of all the SA teams qualifying for respective euro knock out comps in the two seasons they’ve been in it? How many euro teams have qualified for KO’s in their history? Can’t compete? 5. Why no mention of SA teams beating French and English giants La Rochelle and Saracens? How many euro teams have done that in their history? Add no quality? The fact is that SA teams are only in their second season in europe, with no status and a fraction of the resources. Since joining the URC, SA has seen a repatriation of a number of players, and this will only grow once SA start sharing in the profits of competing in these comps, meaning bigger squads with greater depth and quality, meaning they don’t have to prioritise comps as they have to now - they don’t have imports from Pacifica and South America and everywhere else in between like “European” teams have - also less “Saffas” in Prem and T14, that’s what we want right? 'If the South Africans are in, they need to be all in' True, and we have to ensure we give them the same status and resources as we give everyone else to do just that. A small compromise on scheduling will go a long way in avoiding these situations, but guess what, France and England wont compromise on scheduling because they ironically… prioritise their domestic comps, go figure!
19 Go to commentsthe success of the premiership can be summarized by : only 10 teams. It makes a huge difference with the overcrowded top 14 (let us not talk about Leinster and URC…)
2 Go to commentsGood for him. The ABs were fooling around again with converted fullbacks that had a penetration of a marshmallow. Laumape or as Aki has shown for Ireland, go forward is important in the centres. If it had been DMac - Aki- Aumua - Ioane- Telea- Jordan in France the final result would have been different.
4 Go to commentsDan Carter a apporté son professionnalisme, des méthodes de travail, un esprit qui manquaient à l’USAP. Son influence, même une fois blessé a été énorme. Et pour citer une anecdote, certains soirs il venait de lui-même à l’entraînement des jeunes pour dispenser ses conseils. On ne peut pas compter ce qu’il a apporté au club en heures de jeu sur le terrain. Est-ce que le club en a eu pour son argent ? Avec la publicité sur son nom et le titre, je suppose que oui.
1 Go to commentsThe SA sides are suffering from a bum rap here. There isn’t a side anywhere in the world that would do things differently in their shoes. They’ve been set up to fail in the EPCR comps by vested interests, with last minute intercontinental travel requirements that costs an arm and a leg to book in advance just on the possibility they might be required. And the total nonsense that denies any chance of home venues is entirely biased and absolutely unsporting. Either EPCR, the Top14 & the Gallagher Premiership get it sorted on a fair and equitable sporting basis for ALL participants or expect the ridicule to continue. Right now, these comps are a joke!
19 Go to commentsSA sides should do the right thing and leave the champions cup, they are lowering the standard with completely one sided games, not up to the right level. The greatest club tournament in the world is being banjaxed by the weak SA sides.
19 Go to comments