SARU blamed for Province contract crisis
REACTION: The lack of clarity surrounding the South African Rugby Union’s new contracting model has contributed to the troubling contract situation of the Western Province Rugby Football Union.
As @rugby365com recently reported, the WPRFU is busy steering the ship through the stormy waters of yet another cash crunch.
It has been reported that WP Rugby, the professional arm of the WPRFU, is set to show a loss of ZAR30-million.
And there are issues surrounding the contracting of senior Springboks – such as captain Siyamthanda Kolisi, Pieter-Steph du Toit and Steven Kitshoff.
Verbal agreements with players have not resulted in signed contracts yet.
The contract crisis came to light in the build-up to the Stormers’ 9-12 loss to the Sharks at Newlands at the weekend, which saw the Cape Town franchise knocked out the competition and finish last in the South African conference.
Zelt Marais, President of the WPRFU, told @rugby365com in a written statement that an announcement on contracts will be made “soon”.
“Since confirming the Stormers head coach for 2020 [John Dobson], there have been good strides made in terms of contract negotiations with senior players,” the statement read.
“There will be an announcement made in this regard soon.
“SARU’s recently confirmed new contracting model has also led to a delay in the drafting of legal contracts.
“The WPRFU Executive Committee and the Board of Directors continue to work together for the good of Western Province Rugby and will continue to do so.”
He denied WP Rugby has reneged on any offers to players or agents.
Marais reiterated a previous statement to @rugby365com that they are confident they can meet all their financial obligations.
“WP Rugby is currently engaging both internally and externally to navigate the latest developments surrounding SARU’s new contracting model and will have more clarity on the financial situation once these matters have been resolved,” the statement said.
The statement was somewhat vague over the report that Remgro is apparently demanding repayment of their loan to WPRFU by the end of June.
The loan, of ZAR44-million, has accumulated interested at a prime rate and the outstanding amount is reported well over ZAR50-million.
“WP Rugby has registered a mortgage bond as security for the loan and continues to honour the agreements we have with Remgro,” the statement said.
“We continue to engage with Remgro on a regular basis with respect to the repayment of this loan.”
@rugby365com
