New drama threatens WP finances

NEWS: The cash-strapped Western Province Rugby Football Union is heading back to court in the latest episode of its ongoing battles.

The Cape Town-based Burger newspaper reported that the trade union Sports Employees Unite has declared a dispute with the WPRFU.

The dispute centres on the appointment of Ruben Machelm as ‘executive assistant’ – a post created by President Zelt Marais.

According to reports, Machelm is a close associate of Marais and also reports only to Marais.

The appointment upset staff, who turned to their union.

Piet Heymans, Chief Executive of SEU, has since declared a dispute and according to the report in the Burger newspaper, the case will appear before the Commission for Conciliation, Mediation and Arbitration on November 7.

The staff were not informed of the appointment and Machelm arrived for work, totally unannounced, at the beginning of October.

This follows at the time that there is ongoing uncertainty about the future of the Newlands stadium.

Recent reports suggested Newlands will be ‘demolished’ and turned into a multipurpose office-cum-residential development.

This, according to the reports, is all part of an agreement with a major banking group, although the exact timeline for the new ‘development’ remains uncertain.

WPRFU reported entering into an agreement with an asset management group, who will provide the union with a ZAR110-million ‘loan’ for the development rights to the stadium from 2021.

The banking group will take on the development on a 99-year lease.

That means next year’s 2020 Super Rugby season will in all likelihood be the Stormers’ final campaign at Newlands, with a relocation thereafter to the Cape Town Stadium.

However, an agreement with the City of Cape Town, for the use of the purpose-built soccer stadium, has not been signed yet.

Negotiations are underway, but there are many issues to be resolved before the union and the city will put pen to paper.

The ZAR110-million will assist WPRFU with their cash flow issues, including helping them settle a ZAR52-million debt they have with Remgro.

It will leave the union with over ZAR50-million as working capital.

WPRFU will get an income from the development of Newlands, but it will take several years before the new property is complete and the money starts coming in.

In the meantime, the WPRFU needs to find a strong, steady source of income.

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