The government 'lifeline' SA franchises desperately need
SPOTLIGHT: Stormers coach John Dobson first lifted the lid on the challenges being faced by South African franchises – an adulterated currency against robust foreign capital.
However, the exodus faced by South African franchises is not going to slow down unless there is government ‘intervention’.
When Dobson suggested that playing in and against teams in Europe makes South Africa the perfect ‘shop window’ of talent for the cash-flush clubs in the Northern Hemisphere, some scoffed at his remarks.
They questioned the statement that “every day” there are offers for his players.
The Stormers are not the only team battling against constant offers from abroad.
Recent reports suggested the Lions also face a ‘mass exodus’ when the current contract cycle comes to an end in October.
Rudolf Straeuli, CEO of the Lions Rugby Company confirmed to @rugby365com that negotiations are “ongoing” with a number of players – despite the rumour mill going into overdrive about players ‘definitely’ departing the union.
He added that most players have signed contract extensions and said only about six players have yet to sign on the dotted line.
“There are offers and counteroffers from us,” Straeuli told @rugby365com.
The players whose contracts run to its conclusion in October – and with whom the Lions Rugby Company are currently in negotiations – include captain Burger Odendaal, talented midfield Wandisile Simelane, seasoned prop Sithembiso Sithole, powerhouse front row forward Carlü Sadie and fiery loose forward Vincent Tshituka.
“There is still eight months to go,” Straeuli said, when asked about the status of negotiations.
“We are in negotiation with all the players whose contracts expire in October.”
The Lions boss admitted they could do with some financial assistance from SA Rugby and the government, to prop up the negotiations.
In April 2021 the Chief Executive of SA Rugby, Jurie Roux, announced the decision to cut between ZAR700-million and ZAR1-billion from the budget.
It resulted in funding to the four South African franchises slashed by at least ZAR16-million each.
Unlike their URC rivals in Ireland, Wales and Scotland, the South African government did not assist the domestic franchises while they were forced to play behind closed doors – with no spectators.
Even the recent allowance of 2,000 spectators is not much of an assistance.
The four SA franchises – Lions, Bulls, Sharks and Stormers – suffered a combined loss of ZAR250-million in the past two years, without any assistance from the government.
This is in stark contrast to what other United Rugby Championship franchises – those in Ireland, Wales and Scotland – have at their disposal.
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Last year the Welsh government produced a £17.7-million (about ZAR370-million) funding package to help sports hit by the financial impact of the COVID-19 pandemic. Rugby was the biggest beneficiary, with £13.5-million (about ZAR280-million) going to the Welsh Rugby Union.
Of that, Cardiff Blues, the Dragons, Ospreys and Scarlets got £2.7-million (ZAR60-million) each.
In December 2021, it was confirmed that £18-million (ZAR375-million) was allocated from the Irish government’s COVID-19 Emergency Fund for Sport. The funding came after the Irish Rugby Football Union reported a £8.5-million (ZAR175-million) deficit for the year ended July 2021, a figure which would have been more than £34-million (ZAR707-million) without government assistance, and funding from the CVC deal with PRO14/URC.
Scottish Rugby – with just two professional sides outside of the international game – received £20-million (ZAR415-million) and English Rugby £135-million (ZAR2800-million) from their respective governments.
Mark Dodson, the Scottish Rugby Chief Executive, suggested they could field a new pro side as part of the governing body’s next strategic plan. Edinburgh and Glasgow Warriors have been Scotland’s only two pro sides since the Border Reivers were disbanded at the end of the 2006-07 season.
By contrast, Ireland and Wales have persisted with four professional teams, with Ireland, in particular, benefiting from a robust provincial set-up.
It puts into perspective the challenges faced by South African franchises, struggling to make ends meet – let alone compete in the international market.
@king365ed
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