Cash-carrot helps SARU 'out-vote' minnows
FINANCIAL SPOTLIGHT: The South African Rugby Union admitted on Friday they are in a stand-off with five of their provinces over money.
The financial spat – related to the allocation of funds from televisions rights – could soon end up in court.
In a statement on Friday SARU said the parties involved in the meeting in Johannesburg on Friday “failed to come to an agreement” regarding the ongoing financial dispute.
The meeting with SARU involved minnows Boland Rugby Union, the Griffons Rugby Union, the Leopards Rugby Union, Border Rugby Union and the Falcons Rugby Union.
“The parties failed to reach an immediate resolution on the issues in dispute, but have committed themselves to ongoing discussions in an effort to resolve the outstanding issues, in particular through a series of meetings scheduled for the month of October 2018,” the terse statement said.
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However, the statement barely scratches the surface of what is an emotive issue, with several layers.
SARU, who have suffered huge financial losses in the last few years (more than ZAR33-million in 2017 alone), has had to tighten its belt.
One of the big costs was the allocations to all 14 unions.
The minnows – Boland, Griffons, Leopards, Border and the Falcons – had their allocation reduced by about 50 percent, from ZAR20-odd million just on ZAR10-million.
The six franchises – four Super Rugby and Two Pro14 – voted in favour of a reduction.
In fact, most franchises had their allocations slashed by ZAR10-million or more.
With the minor unions already deep into the red, they were up in arms.
In the past, they would have been able to garner enough support to stop SARU from making such a move, by voting en bloc.
However, SARU opted to award ‘franchise status’ to two additional unions – Pumas and Griquas.
Suddenly the voting power had swung from the minnows (who used to have eight votes) to the franchises – who now had an eight-to-six advantage with the support of the Pumas and Griquas.
The big unions have for a long time been upset that they bring in the bulk of the money, but have to share with the minnows – who have very little to no drawing power at the box office (read TV revenue).
As an example, the Griffons (with just one genuine club in Welkom Rovers) have as much voting power at SARU meetings as does Western Province (with over 100 clubs).
And Griquas, now a franchise, have just two genuine clubs in Sichen and Kimberley Police.
However, in the world of boardroom politics – where votes count most – loyalty is rewarded.
By Jan de Koning
@king365ed
@rugby365com
