VIDEO: What will change when SA gains full membership of URC & EPCR
June is an important month for the United Rugby Championship in more ways than one.
It is a month of playoffs, semifinals and the Final coming up in the next two weeks.
However, it is off the field where there will be a more seismic change.
South Africa will go from associate membership to full membership of the URC and European Professional Club Rugby competitions (Champions Cup and Challenge Cup).
In short, they will now have equity in the European tournaments they have been taking part in since late 2021.
The URC Chief Executive, Martin Anayi, described it as a ‘procedural change’.
However, it is far more momentous and tectonic.
“We effectively treat the South African Rugby Union and the four franchises the same way we do all our members already,” Anayi told @rugby365com.
“They are on the same boards and committees. They have the same decision-making [powers].”
The big change is that SARU – and by association the franchises – will become a full shareholder by the end of June.
It marks a shift in commercial terms for SARU and freeing up funds for SARU and the franchises (Bulls, Lions, Sharks, and Stormers).
According to the terms already in place, the SA teams have been assured of participation in the URC for the next four years.
That means SARU will no longer be subject to annual participation fees, and the commercial revenue from the broadcaster and sponsors will go directly to the URC.
This change is expected to have a ‘substantial’ impact on the commercial terms for SARU, potentially freeing up significant funds.
(WATCH as the URC CEO Martin Anayi explains what the impact will be when South Africa finally gains full membership at the end of the month…..)
“The South African teams have been super competitive,” Anayi said of the three finals, all in the Republic, all featuring SA teams.
Anayi pointed to the huge interest in Saturday’s semifinal between the Bulls and Sharks in Pretoria, with more than 40,000 tickets sold already, saying that ‘engagement’ by the fans is what drives the tournament.
“It is a very positive relationship,” he said of South Africa’s involvement, adding: “We feel they want to be part of it and are putting the [URC] league first.
“Commercially, it [SA’s full membership] is fantastic.
“It starts with how competitive those teams are. It is right up there. They are pushing the standards and making the league even more competitive.”
The URC boss said all the contracts in place will be directed into the league, and the teams, including the SA franchises, will now have a share in the overall pie.
“It is an important change, becoming a full shareholder,” Anayi told @rugby365com.
“They will have equity in the league at that point.”
Full membership in a nutshell
Financial Impact
The biggest change is that SARU will no longer need to pay participation fees to the URC. This means the revenue generated from sponsorships and other commercial deals will be channelled directly into the URC’s coffers.
Funding for Local Game Development
The increased funds available to the URC, now that SARU is a full member, are expected to be redirected to the development of the South African rugby ecosystem. This could include investments in infrastructure, coaching, and player development programs.
Increased URC revenue
With South African teams as full members, the URC can expect to see increased commercial revenue through sponsorships, broadcasting rights, and other avenues.
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