The SA Rugby emblem SARU

The SA Rugby emblem. Photo: Archives

SA Rugby lost R240m with empty stadiums, but transformation progresses

In a recent parliamentary meeting, SA Rugby revealed the massive losses due to empty stadiums, but highlighted its transformation success.

The SA Rugby emblem SARU

The SA Rugby emblem. Photo: Archives

The parliamentary committee is said to have heard how SA Rugby is still a sports leader in terms of their transformation targets, while addressing the problematic economic impact of empty stadiums in addition to discussing the situation facing embattled CEO Jurie Roux.

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Below, you can see how sports business writer Nqobile Ndlovu unpacked the key takeaways from the committee meeting:

Mr Abubakar Saban, SARU CFO, spoke about the impact of Covid-19 on the financial standing of SARU. Group revenue is down 21% from the R1.29 billion posted in 2019 but quite a lot better off than the R710 million posted in 2020. Despite the improved performance, Mr Saban refers to the unions finances as being in ICU for two years and a cumulative loss of about R240 million with a projected R30 million loss if fans are not allowed back into stadiums this year. The situation would have been worse were it not for an Industry Savings Plan which include cancelling competitions, cutting or mothballing development programmes, cutting salaries across the board and shelving campaign plans.

SA Rugby president Mark Alexander was said to have questioned the double standards of COVID regulations and restrictions pointing to shopping malls being full of people while only 2000 people are allowed into open air stadiums. He also warned that there will be more retrenchments because of “no spectators” in the stadiums.

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Meanwhile, a review of transformation in rugby found that SA Rugby is one of the best performing federations with an 84% score in terms of meeting their transformation targets.

The reports also highlights the following key information related to the ongoing Jurie Roux saga.

Although the meeting was not intended to deal with the matter involving Jurie Roux, the elephant in the room could not be ignored and committee members asked why he had not been dismissed. In response to this, Alexander said SARU could not suspend the CEO based on financial misconduct he committed at his previous employer and that SA Rugby has received five legal opinions that advised against his suspension. Alexander informed the committee that following the loss at the Supreme Court, Mr Roux is taking the matter to the Constitutional Court. SARU has briefed senior counsel and is awaiting that opinion but could not divulge how much SARU had spent on the Roux matter is it is now set to go before the apex court in the land.