Massive lay-offs for Lions
12 Jan 2012
Keo.co.za understands that up to 15 players on the Lions’ payroll will be retrenched as the union battles to avoid financial ruin.
Rumours of the Johannesburg franchise being bankrupt have circulated since late last year and was further fuelled by a leaked document from former multi-million Rand investors, the Guma Group, detailing the depth of union’s financial crisis.
In the document, Robert Gumede and Ivor Ichikowitz of the Guma Group alleged (among other things) that the Lions were struggling to pay back millions in loans, that the union has up to 90 players under contract and some of the players are receiving big salaries in spite of not being at training, that Dick Muir (former Lions coach) received a salary of about R2.2 million per year, even though he has not been actively involved at the Lions since May 2010, and that they were unable to pay salaries in October and December 2010, as well as in January 2011.
Lions president Kevin de Klerk has denied the claims and this website understands he later met privately with the contracted players to assure them of the union’s financial stability and ease fears around non-payment of salaries and potential retrenchments.
However, those fears appear to have become a reality, with a well placed source informing this website that up to 15 players have been told their services are no longer needed. Among those players are Wandile Mjekevu, Kevin Buys, Jannie Boshoff, Dries van Schalkwyk and Trevor Hall. De Klerk has reportedly been bombarded with calls from players’ agents and has been engaged in lengthy crisis talks with these agents as well as potential investors in a bid to steady the sinking ship.
The root of the problem lies with the Guma Group’s decision to withdraw their involvement with the franchise in late 2011, citing the Lions’ unwillingness to meet the transformation criteria that the group said was central to their decision to invest. Gumede and Ichikowitz are known to have lined up lucrative contracts for the union before their departure, whereupon those contracts were lost leaving the Lions in a dire financial situation.
Keo.co.za was unsuccessful in its attempts to reach De Klerk for comment.
By Ryan Vrede
65 Comments
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12 Jan 2012, 17:09 pm
Di ck Muir coined R2.2M to lose 13/14 matches AND on top of that declared the season a success? He deserved the Lions.
12 Jan 2012, 20:25 pm
How much mulla does a team gain after winning the Currie Cup? What happened to the new equity partners De Klerk was talking about after the millionaires left??
12 Jan 2012, 20:53 pm
@Jeez-52: Dude you need to stick your nose in some news papers. This is OLD news. Some dingbat started something and now everyone is jumping on the bandwagon. New partner already signed. Also what the Lions are doing, is it wrong? Letting people go that don’t contribute….. what is wrong with that? I say it’s about time.
13 Jan 2012, 07:40 am
@kwas-51: nobody deserves **** Muir as a coach
13 Jan 2012, 08:02 am
@Tacitus-45: Tacitus, it depends on how much money a team has. In the Moneyball example the New York Yankees is a team that buys the best always no matter the price … because they can. The other teams don’t have the money to do the same and therefore … Moneyball. The Red Sox borrowed the Moneyball principles and became very successful … and the Yankees started to fade.
Anyways … the argument that a team must choose between S15 and CC is nonsense. There is no choice like that. If you are good enough to win the S15 you should be good enough to win the CC. The Lions already succeeded the CB level using the Moneyball principles and will now build towards success in the S15 also. One step at a time. The Bulls also won the CC before they achieved success in the Super 14/15.
Teams on a lower budget can learn a lot from Moneyball. Only those with money to burn need not take note.
13 Jan 2012, 08:05 am
Mitchell told keo.co.za. ‘We are just retrenching players who do not live up to Super Rugby standards. That way, we are creating an elite squad here at the Lions. This is all part of the restructuring plans that we have for the union.’
There you have it. Take note of the phrases “Super Rugby” and “elite squad”. This is the right way to manage rugby teams.
13 Jan 2012, 09:09 am
@Kat-56: Can’t disagree… but, it is a strange time to do these retrenchments. Won’t there be a Vodacom Cup this season?
13 Jan 2012, 09:18 am
@Bouts-57: The depth is there for VC . The youngsters (u/21) can be used and nothing stops a union from using amateur players on a pay-per-play basis.
13 Jan 2012, 09:27 am
@Kat-58: True… even if the players are pulled from u/21 comptetitions, varsity-cup competitions, clubs competitions etc…
Just strange that players who aren’t considered Super Rugby level, and being kicked from the squad, is suddenly not good enough for any competition.
Point is: They do have problems financially, whichever way you look at it. They did the right thing to cut off the dead wood. All too true. Guess they signed too many players when they had the backing of these rich-dudes.
13 Jan 2012, 10:03 am
@Bouts-59: Bouts, what people miss in this story is that GumaTAC was replaced by another partner who’s also rich enough to make a serious investment in the Lions. This has nothing to do with GumaTAC. This is about what is best for the union. It makes sense and the other unions will take note (even if the will pretend not to). It is going to become harder and harder for agents to get pro contracts for their clients. And it is going to happen in Europe as well. Why own 20 expensive items when you really need only 15 and can temp hire in when the chips are really down? That “hired” player will play his balls off to earn a pro contract so there will be no extra motivation needed. The days of just throwing money away is over.
13 Jan 2012, 10:07 am
Mitch learned good lessons from his Force adventure. The Force had very little depth and he had to make smart moves to keep the team competitive. Very similar to the Oakland A’s story. In the Lions he has now found potential more in line with the Boston Red Sox where the principles learned can be applied with greater chances of success.
13 Jan 2012, 11:56 am
@Kat-60: @Kat-61:
Cannot compare the Boston Red Sox to the Lions. Red Sox success changed when they they took erudite decisions and cleared out the once ineffectual top brass in administration and hired a young maverick in Theo Epstein who changed the way the franchise did business-made him the youngest GM in the history of MLB.
The Red Sox also recruited efficiently and most importantly DRAFTED well. The Lions exist in a completely different environment and do not have the benefit of the Draft Lottery to dig into. They must compete with more storied,successful franchises with better financial clout and as well strategic advantage in the SA rugby landscape. In all that I dont see Lions clearing house in the infamous “President Council” and other top brass. I dont see a Theo Epstein in the midst of all their so called manouvering to strengthen themselves.
Plua the Red Sox regardless of their results, the region’s fanbase(Boston,New England etc) is one of the most passionate in the USA. The region is ‘nothing like the Gauteng region which is largely sporadic in its support and affiliation with the Lions.
Lions are more like the NFL’s Oakland Raiders who are still going to suffer from the ghost of Al Davis much like Lions still suffering from the Luyt hex….
13 Jan 2012, 12:59 pm
@mshiniwami-62: Baseball is obviously very different to rugby so a direct comparison is impossible and of no value. Not what I’m trying to do. What I’m saying is that the team/squad formation principles that the Red Sox borrowed from the A’s helped them – amongst many other things – to become hugely successful and that the Lions are trying to implement something similar (using similar principles). I believe it will work for them, like it did for the Red Sox.
Talking about you dynamic CEO’s and GM’s … that is a very likely outcome at the Lions as well. Manie Reynecke is out and a new CEO will be appointed. Glasfit’s young and dynamic CEO is taking care of the role atm. Mitch and De Klerk are way more dynamic in their thinking than what came before them. … and the cleaning you talk about is exactly what we are talking about … it is not just players that are retrenched … it goes right through the system. A smaller fitter system will be the result. A very good place to be.
13 Jan 2012, 13:02 pm
WPRU should do the same. Too many Blazer Brothers.
14 Apr 2012, 23:36 pm
Shame… on top of what’s been a tough season with all the injuries. Sad for Lions supporters because they have a proud history. Things looked rosey after the stunnning Currie Cup victory but things have not gone well since. Here’s the good news though:
I called 6 out of 6 this week and I’m making the call now: Lions (bottom of the SA division) to topple the Brumbies (Aussie Division leaders) in less than 2 weeks time. You heard it here first!
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