Toulon's Kings deal 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 latest saga in the ongoing Kings' financial crisis comes amidst reports that the Eastern Province Rugby Union has been given a Tuesday (November 10) deadline by the South African Rugby Players Association to pay outstanding salaries for October or face action.

The reported Toulon offer, if true, has overshadowed the ongoing crisis at the franchise that will return to Super Rugby in just over three months.

It has taken the spotlight away from the real issues – the attack by the minister of sport Fikile Mbalula over the apparent failure of the Kings Academy to produce the promised 'flood' of black players and the failure of a ZAR200-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 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 two Springbok Tests per year – one 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.

By Jan de Koning

@King365ed

@rugby365com