South African players facing salary cuts?

COVID-19: The Lions players and staff will receive their salaries for March, but future ‘cost-cutting’ has not been ruled out.

Lions Rugby Company Chief Executive Officer Rudolf Straeuli on Thursday gave an assurance to all staff and players that the March payroll will ‘run as per normal’.

However, a scheduled teleconference next week Friday, with all stakeholders in South African Rugby, will shed more light on the way forward.

Straeuli, in his communications with both staff and players, said they are currently facing “uncharted waters” in the South African Sport Industry – the result of the coronavirus.

He said that they are awaiting “clarity” from SA Rugby and the government on competition structures and timelines.

“Going forward, on review of the possible impact on revenue streams, a risk assessment by the relative Board of Directors may lead to further cost-cutting,” Straeuli told the staff and players.

Although he did not elaborate on the nature of the possible ‘cost-cutting’, salary cuts have already been implemented by many European teams.

“I will update all employees in due course,” the CEO said.

“However, rest assure no stone will be unturned to ensure well being of all Employees and your families.”

He made reference to the teleconference with SA Rugby next week Friday in his communication with both the staff and players and said he was in “constant communication” with all stakeholders.

It is a well-documented fact that all franchises in South Africa are feeling the financial pinch and reports of unions facing cash-flow problems are common.

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