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Newlands: The BIG vote

By Jan de Koning
Tuesday 30 Jun 2020

UPDATE: With a new deal safely tucked into his back pocket, Western Province Rugby Football Union President Zelt Marais must convince his constituents that they must vote in favour of ‘change’.

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His persuasive powers will be put on display at the Special General Council Meeting on Tuesday, June 30.

It was originally planned for last Thursday, June 25, but was rescheduled after they failed to convince their constituents to waive the 15 days notice period.

Marais must convince the SGC to approve Dream World Investments 401 (Pty) Ltd as a ‘development partner’ – on a 50/50 basis – for the Newlands Stadium Grounds and also that of Brookside in Claremont.

The ZAR112-million – a loan from Dream World – is already in the attorneys’ trust account, waiting for approval to pay off the debts owed to Remgro (ZAR58-million) and Investec (ZAR50-million).

The loan owed to Remgro must be repaid on Tuesday, June 30 – hence the importance of Tuesday’s meeting.

The Investec advance must be repaid in 24 equal instalments over 24 months, with effect from July 1.

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The loan to Dream World, penned at the prime interest rate, must be repaid over a four-year period.

(Continue reading below … )

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No doubt the road ahead will be challenging for WPRFU, but with the threat of Remgro being able to lay claim to Newlands if the ZAR58-million is not paid on Tuesday, approval from the meeting is exigent.

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There are those gleefully pointing to a process of ‘borrowing from Peter to pay Paul’ and many others hoping for failure.

However, the WPRFU President believed they are positioning themselves for ‘long-term stability’ by using the union’s rich asset portfolio.

But first he must convince the SGC to approve the Dream World partnership, to allow him to repay the Remgro loan ‘immediately’.

@king365ed
@rugby365com

Also worth reading …

Newlands: The tangled web
All the facts about Remgro, Investec & Flyt
Aerios: Why it works at Sharks & failed at WP
New legal bomb drops on Newlands
SA Rugby taken to court in Newlands saga
Newlands: The grand old dame is no more

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