Baltimore: The reason why SARU will show a rare profit
From the brink of bankruptcy, during the post-COVID era five years ago, the South African Rugby Union is now the financially most stable organisation in the game.
Despite the financial fall-out of the failed bid to sell a stake in SARU to an American consortium, the Ackerley Sports Group, the organisation has stabilised enough to show a profit again.
The improved financial status of SARU was certainly aided by the fact that the Springboks are back-to-back World Cup champions.
However, SARU CEO Rian Oberholzer revealed that taking the Bok brand abroad is another important aspect of ensuring the country goes from being in the red to moving into the black.
The Springboks will play the All Blacks in Baltimore, Maryland, on Saturday, September 12, marking a historic first for the rivalry on American soil.
This match is the fourth Test between the Springboks and All Blacks this year, and concludes the ‘Rugby’s Greatest Rivalry’ series.
“We are in a very good space, on and off the field,” Oberholzer told a broad-ranging media briefing in Cape Town this week.
“Of the 12 Tier One nations – and we have discussions with each other – we are the only one that is going to show a bit of a profit,” he said on the healthy state SARU finds itself in.
However, the Boks’ success means there is money to keep feeding the conveyor belt of talent coming through the South African structures.
“It is a system and a system that must work,” Oberholzer said.
“If the Springbok team and our national teams do not perform, we won’t have commercial money.
“If we do not have commercial money, we can’t feed the system from the bottom to ensure the players keep coming through the system.
“The majority of our funds go back to the unions to feed the system.
“We are in the best position since COVID.
“We are very fortunate to be in a stable place right now,” Oberholzer added.
* (WATCH as SARU CEO Rian Oberholzer explains why South Africa is the only Tier One nation likely to show a financial profit this year…..)
He said they also need to start taking their brand abroad more often, as they did with a World Cup warm-up match against the All Blacks and a Rugby Championship fixture against Argentina at Twickenham.
“For us [SARU], to create financial stability, we have to look at taking our brand wider than just South Africa.
“You all saw the massive support we have in London [Twickenham],” the SARU boss said.
“America is a very important market for us in the run-up to the 2031 World Cup.
“We want to establish ourselves there and be known by the Americans.”
Oberholzer added that it also aligns with World Rugby’s vision to expand the game in America.
“They [World Rugby] have encouraged us to take some of our matches, in the run-up to the [2031] World Cup, to America.”
The Bok brand could further benefit from the Nations Cup (the rivalry between the Northern and Southern Hemisphere countries), the Greatest Rivalry and Tests against next year’s World Cup hosts, Australia.
It will allow coach Rassie Erasmus to fine-tune his squad ahead of next year.
“It is a massive year for us,” Oberholzer said.
“The Nations Cup is brand new, and the Rugby’s Greatest Rivalry series with the All Blacks is unique.
“But we are feeling good about all of our teams. The structures are working, and the high performance has gone up across the board.
“The Nations Cup is exciting in that it is the top six northern teams playing the top six southern teams,” Oberholzer added.
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* Also from this week’s media briefing …
‘Global season won’t happen without compromise’
Springbok leaders weigh in on All Blacks coaching
Tony Brown’s ‘magic potion’ for out-of-sorts Sacha
Why South Africa and New Zealand will never host a World Cup again
