Saru intervenes in Lions’ struggles
30 Jan 2012
The South African Rugby Union has committed to negotiating a settlement in a dispute between the Lions, Pumas and Leopards.
Keo.co.za reported last week that the Lions are on the verge of financial ruin and will retrench up to 15 players in a bid to ease the pressure. Now their woes are set to deepen with the possibility that they could lose up to R6.6 million in broadcast revenue.
The New Age reports that Saru will attempt to settle financial disputes between the Lions and their franchise partners, who maintain that the Johannesburg franchise have not honoured their commitments as detailed in the franchise agreements set out by Saru. With the Pumas still having outstanding debts to the Lions, the Leopards are expected to pocket the bulk of the broadcast revenue.
The Lions had previously banked on the significant cash injection from the Guma Group to settle their most pressing existing debts. However, that deal collapsed in 2011 after the Guma Group claimed the Lions would not honour their commitments on numerous issues detailed in shareholders agreement.
They group has subsequently lodged an application to have the union liquidated at the South Gauteng High Court, seeking re-payment of approximately R9 million for players and staff salaries. There is also a claim for R2,4 million from a subsidiary of the Guma Group.
In the affidavit, the Guma Group claims: ‘The [Lions] is hopelessly insolvent, both factually and commercially. As will reflect in the Lions’ financial statements over three years, their financial situation has deteriorated to a position where their liabilities exceed its assets by tens of millions of rands.’
The Guma Group also reveal that the Lions were nearly R74 million in debt by the end of the 2010 financial year, with little prospect of halting their slide.
Lions president Kevin de Klerk has consistently insisted that they are not in financial trouble and pointed to a ‘substantial’ investment from new equity partner, Altmann Allers of Glasfit.
43 Comments
30 Jan 2012, 11:51 am
“The South African Rugby Union has committed negotiating”
or should it be…
“The South African Rugby Union has committed to negotiating”
or
“The South African Rugby Union has commenced negotiating”
30 Jan 2012, 11:58 am
it starts…
30 Jan 2012, 11:58 am
Whichever way, sounds like its the end of the road unless someone sinks in some serious tom! Maybe this is how the Kings fit in into the S15
30 Jan 2012, 11:58 am
Made change as soon as I saw it sir
30 Jan 2012, 12:00 pm
So if the shareholders agreement was never signed then why did the Guma group pay approximately R9 million for players and staff salaries? It is starting to sound like no loan agreement was signed for these amounts.
30 Jan 2012, 12:05 pm
Verde are your sauces correct or are you just talking kak? What did the magistrate have to say … up your game boy and tell us something we don’t already know.
30 Jan 2012, 12:10 pm
this union has been allowed to go to ruin without any consequence to the administrators responsible and no consequence to the union in terms of super rugby participation.
30 Jan 2012, 12:14 pm
@Transformation-7: Hahaha you sound so upset … I wonder why
30 Jan 2012, 12:15 pm
If SA can’t get a 6 team conference, will the worst performing team lose out, or the one with the worst spreadsheet.
If they have to retrench players, Lions could be both.
30 Jan 2012, 12:17 pm
“we’re not broke, we got Altmann’s money to save us” – this must be very reassuring to this aller oke
30 Jan 2012, 12:18 pm
@RL-8: “upset” hehehe nope
you should be though
30 Jan 2012, 12:20 pm
@ali-9: The SARU morons agreed to 6 SA teams in an extended super competition … without first confirming this with their antipode partners … expect big fireworks to go off real soon.
What is their plan going to be when NZAR says no to expansion. What are the broederbonders in each union going to do when that happens.
Open warfare within rugby coming our way.
30 Jan 2012, 12:21 pm
the broederbond should step in to save them.
nothing to get too worried about.
30 Jan 2012, 12:27 pm
This is bullshit sensationalism again. They did not retrench players, they cut dead weight. They went from 90 players (WTF?) to a squad of 45. This is old news that Keo keeps regurgitating.
30 Jan 2012, 12:29 pm
The next big political decision will be to give the Kings entry into Super rugby and the poor Lions will be scrapped.
Is it fair that a team ,who only came second in 1st division, get super rugby entry ahead of a team that won the currie cup?
Politics politics. All the bad financial exposure the Lions are getting will not attract any more investors, which is probably the only way to save the sinking ship. With a brilliant coach and with recent currie cup success, youd expect that SARU will do a bit more to help out the Lions…
But its pretty convenient considering that SANZAR will not agree to SA having 6 teams and that the Kings have already been promised a spot in the super comp…
Maybe their recent success is too little too late…The Lions have always been terrible in Super rugby. It will be interesting to see if the Kings can do better, thankfully theyll have a few unemployed Lions to choose from to bulk up their squad…
30 Jan 2012, 12:32 pm
Get out Mitch…………………………………get the fnuk out now……………………………………..run Mitch run.
A Big Cat fight,
is no place for a Kiwi.
30 Jan 2012, 12:35 pm
@Jeez-15: the SARU board voted UNANIMOUSLY for the Kings to be included.
30 Jan 2012, 12:36 pm
@RL-12: Yeah, it doesn’t exactly leave a lot of room for a win/win scenario.
I’m all for developing the EC region, but think it’s madness that they should be promised a place in super rugby.
Personally, I think they should have been promised a Currie Cup Premier slot, with Super participation decided on an annual basis, through the accumulated points of all teams in a franchise.
30 Jan 2012, 12:37 pm
the lions are like that italian passenger ship……landed on a sandbank and slowly slipping and sinking into the deep water.saru should replace them with the kings…..not in 2013 but NOW!
30 Jan 2012, 12:37 pm
Come now Johann Rupert just give the Guma people R15mil so they can go away, you make more than that in a day…. well you make more then that in a week.
30 Jan 2012, 12:37 pm
@Kiefpant-14: Keo is indirectly punting for the Kings because they have to get their boy into superrugby … now according to Vrede this is for reason that you and I do not understand … hell not even Vrede understands this reason, that is why when questioned on Twitter to explained this reason our Blogger Verde put his tail between his legs and pushed all questions onto his boss, Keo.
30 Jan 2012, 12:39 pm
@Transformation-17: you forgot the “into an expanded competition”
30 Jan 2012, 12:39 pm
@Transformation-17: So? Was it a decision they can afford to make now? They dont even have the get go from SANZAR that they can feature another team in the super comp… But now that they did, Lions will have to get the boot for the decision to stick, which is unfortunate for a Lions supporter.
30 Jan 2012, 12:39 pm
@Transformation-17:
how does that fit in with the Broederbond pulling the strings?
oude meester puppet meesters?
30 Jan 2012, 12:43 pm
@RL-6: Sauces… Tomato, HP, Worcester (you mean sources)! No need for angry responses to a sad story about mal-administration of a once great rugby province. The Lions are in KAK and it will affect their performance, despite what Mitchell/Spencer are doing with the team.
30 Jan 2012, 12:43 pm
@the artist formerly known as gunther-24: try and find one post of mine where i’ve ever mentioned the “broederbond”
30 Jan 2012, 12:44 pm
@cane-16: are you that desperate to get rid of Hammett that you are calling for Mitch (and Carlos) to come home. Cane slap yourself across the jaw and think about what you just said.
30 Jan 2012, 12:48 pm
@NicG-25: no I mean sauces (HP, All Gold, Nandos, etc…) Verde’s buddy tank has some great sauces.
30 Jan 2012, 12:48 pm
I can trace a portion of my lineage directly back to one of the Boer War generals.
That makes me an honorary member of the BB.
I wonder if they have a box at Newlands…….
30 Jan 2012, 12:52 pm
@Transformation-26:
I’m not singling you out.
I thought it was common knowledge
30 Jan 2012, 12:52 pm
@RL-27:
Can you accept a re-birthing of the Cats RL?
This may be the best option. (Solomon’s choice).
30 Jan 2012, 12:55 pm
@stormersboy-29:
with an underground pipeline to the kwv distillery in paarl.
and an underground railway that connects them to the afrikaans language monument.
and a panic room with some vintage baked has beens.
30 Jan 2012, 12:55 pm
poor lions…….the ‘broeders’ probably pooled all their resources into the blue bulls
30 Jan 2012, 12:56 pm
@the artist formerly known as gunther-32: Don’t forget the koeksusters.
30 Jan 2012, 13:04 pm
@the artist formerly known as gunther-30: one of those “open secrets”?
30 Jan 2012, 13:05 pm
@ChairmanShabazz-33:
the bulls get their money from oasis.
BEE offf the hizzo china.
wkaethefuckup CAPO.
@stormersboy-34:
and the halaal billies.
30 Jan 2012, 13:14 pm
@RL-21: Vrede has been relegated to making tea and washing keo’s car for the next month for exceeding his mandate.
At least he hasn’t reported anything as “fact” lately.
Although it is only the beginning of the week.
30 Jan 2012, 13:19 pm
No knight in shining armour is going to commit their hard-earned to the Lions until SARU have shed more light on their ‘solution’ to 2013!
30 Jan 2012, 15:29 pm
The mangy Lions one hit wonder in the Currie Cup is soon going to be a distinct reality when they get their arses kicked off the Ellis Park premises.
What a sorry bunch these Gautengalengers are. All that money she has gone poof.
30 Jan 2012, 19:24 pm
@Jeez-23:
Question is if the ANZAR partners were consulted, I guess not
The Kings aren’t a big draw card in SA, let alone if playing abroad in NZ and Aus where the Unions there are cash strapped too, it means sure big losses
The Rebels based at Melbourne, the Forces in Perth both cities are massive economic bases for their expansion teams, what has PE to offer in this regard?
When the economic reality bites, the venture will collapse.
As for the Lions, the Union is based in the biggest and richest city in SA, they will find backers sooner or later, but who in his sane mind will invest in the Kings?
30 Jan 2012, 19:35 pm
@Great White Sharks gonna get ya-39:
Ellis Park has been a dangerous place to watch rugby since the mid 1980′s, sharing the stadium with Kaiser Chiefs and the Swallows incurred heavy losses since these team often failed to pay for insurance, security and vandalism damage.
Then came the Van Rooyan tenure that brought the Louis Lyut’s financial structure to collapsed, the fact that since Laurie Mains time with the Cats the Lions had no team to compete at the money maker of Super rugby didn’t help either.
Sad
31 Jan 2012, 00:06 am
It wont be long now before we hear that Mitchell is out of there
31 Jan 2012, 12:57 pm
@cane-31: I doubt they will go the Cats route. The Cheetahs are hardly a model of fiscal prowess themselves, and I have it from a good source that Cheetahs players have sometimes waited a few months for salaries in years gone by. It will be out of the frying pan, and into the fire.
I don’t know much about the Lions financial issues, and I certainly don’t trust Gumede and his lynch mob, but if there is some truth behind this – the Lions will sink faster and more dramatically than the Titanic. There is no chance the glory boys in the Lions team are going to hang around to bale out water on a ship for which the short term fate is inevitable.
They lose a few games in the Super 15, they will again be hosting players with 5 people in the stands. Probably one of those is old RL. The die hard.
Those players have just earned their stripes, but to stay on a sinking vessel could see that quickly fade into a vague memory. If I were guys like Strauss, Taute, Killian, Minnie etc. I would be out of there ! ABANDON SHIP !
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