The South African Rugby Union (SARU) may have to bail out the Eastern Province Rugby Union to end a player strike.
An ongoing stand-off between EP Rugby and the players, over the non-payment of salaries, has put in jeopardy the Currie Cup match between the Xerox Golden Lions and EP Kings in Johannesburg on Saturday.
The latest controversy follows a similar dispute in July, when New Zealander Carlos Spencer – then a member of the coaching panel – walked away from the team over non-payment of salaries.
The players were eventually paid at the end of July, with some reports claiming that it was the result of a SARU intervention.
Eastern Province Rugby Union (EPRU) President Cheeky Watson responded with a terse “no comment”, when approached over the ongoing financial crisis at the Port Elizabeth-based union.
The South African Rugby Players Association (SARPA) confirmed they will meet with the players on Thursday, as the latest stand-off drags into a 3rd day.
“We will be advising them of their legal rights,” SARPA and MyPlayers media manager Nyaniso Sam said.
“The decisions taken by the players, going forward, will be based on that,” he added.
While all parties were reluctant to say too much, given the sensitive nature of the situation, it is believed that the players had a meeting at the Nelson Mandela Bay Stadium on Tuesday – after discovering they were not paid for August – and decided to stop training till the financial issues are resolved.
It has become a classic case of “no pay, no play” and Thursday’s meeting could be the proverbial watershed for the union.
The EP Kings boss, Cheeky Watson, and the union CEO Charl Crouse have been locked in intense discussions for the past 2 days.
The fact that the much-publicised record sponsorship has not materialised has added fuel to the fire.
The EP Kings have endured a torrid start to the Currie Cup campaign‚ losing all 4 of their matches – including coughing up more than 50 points against the Lions in Port Elizabeth in Round 1.
While the EPRU has been beset by cash problems for some time, Watson insisted last week the “massive” sponsorship is a fait accompli.
He said the cash-flow issues that resulted in the non-payment of salaries would be resolved once the sponsorship was finalised.
rugby365
Should the game not take place, will I get a pro-rata rebate on my season ticket?
R20? That’s what tickets are starting at.
It appears that the EP Kings players have now been paid and it was not necessary for SARPA to have the meeting with the EP players.
What’s the business model for the Kings…surely you can’t expect to pay running costs through sponsorship… just not sustainable….
4 @ Te Rangatira:
There does not seem to be much of a business model.
Money from whatever source comes into the purse, it is spent, without a view to what is going to be needed next month…. or next week.
It’s a re-active model, not a pragmatically planned model.
All Rugby Unions, Clubs, Franchises rely heavily on the main revenue streams like broadcasting deals, Sponsorships and gate money makes a very minor contribution.
EP Kings do not even seem to have a Headline Name Sponsor, we know they have a Kit Sponsor, recently signed, BLK.
They are based at the Nelson Mandela Bay Stadium, which belongs to the city of Port Elizabeth and not themselves… and their previously owned Stadium, Boet Erasmus is in absolute ruin… will see if I have pictures available for it, and what it looks like now.
This is what Boet Erasmus used to look like:
Boet Erasmus Stadium used to be a Test venue… see here:
@ grootblousmile:
To be fair. Who should be maintaining the stadium?
Such a pity.
The paying public who supported the Kings in their thousands in SR 3 years ago(?) do not deserve to be treated like this.
However, it is only the Rugby people of the Eastern Cape that can solve this bugger up.
9 @ MacroPolo:
I think that if it belongs to the EPRU then they should.
Alternatively they should sell it off for whatever they can get for it.
It is after all a decent piece of land.
@ Scrumdown:
Then they should sell it,
It the Lions ever moved to FNB stadium, or WP moved to Greenpoint, what would the purpose of maintaining such massive museums be?
By museums, I mean their previous Stadia, Newlands and Kingspark.
Ellis Park.
Well same for Sharks, if they moved to Moses Mabhida, why would they maintain Kings Park? For who?
MacroPolo wrote:
Surely Ellis Park, not Kings Park?
However, I was told by a little bird a couple of years ago that both the KZNRU and WPRU will be forced to move in the not too distant future.
Both Newlands and Kings Park are ageing in terms of their design, and neither can be further upgraded to the level required to host international sporting events.
Of course the problems are that:
1. The replacement Stadia (Cape Town Satdium & Moses Mabida) were not designed for Rugby. Hence they are not ideal in terms of the playing area dimensions.
2. Newlands and Kings Park are OWNED by the respective Unions. What to do with the “old” structures?
3. Because the new Stadia are owned / managed by organisations other than the people who would effectively become the main user, things like suite prices, alcohol and catering costs are dictated by the owner / managing company and are often not in line with what the current suite holders willing or able to pay.
When the Lions investigated moving to the FNB Stadium, the suite issue was effectively the biggest stumbling block.
Suite revenue is a MASSIVE portion of the Union’s cash flow, and the majority (>70% if memory serves me correctly) of the suite holders indicated that they would not be willing to move due to higher rental coste and even more importantly the higher alcohol and catering costs which were considerably higher than was current.
Of course, the Lions also own Ellis Park, but not the land that it stands on. The land they rent from the City of Johannesburg for a nominal fee through a 99 year lease. R 100 per year if I remember correctly, and a new lease was signed just befor the FIFA World Cup.
Of course both Ellis Park and Loftus were subjected to massive upgrades for 2010, which effectively extended their useful life in terms of holding international sporting events there.
The same little bird that told me about Newlands and Kings Park also told me that both Ellis Park and Loftus have about 15 years to go before they will need to be razed & rebuilt to meet changing demands.
Unfortunately, I think that the EPRU just grabbed the “new” stadium like a beggar being offered a crisp blue R100 note, without thinking through the long term implications.
I really hope that the EPRU sorts their shit out. But I doubt it.
@ Scrumdown:
I get your point about the suites, but surely the Kings new stadium has an abundance of more suits than Boet Erasmus had? Also it is likely to generate more revenue I assume?
Boet Erasmus is currently owned by the NMMetropol, so it is not a burden on the kings, I even doubt they can do anything about whats happening there if they could. I also do not know if the EPRU ever owned Boet Erasmus or did the NMM buy the stadium from the EPRU.
All the other unions have separate deals of course with different Metropols, all I am proposing, is that if the WP, Sharks, Blue Bulls or Lions were in the same position, why would they still HAVE to maintain the old stadium they do not use it or own it, and I do not see why they would be held responsible.
@ MacroPolo:
I get your point totally.
I’m damn sure that any Union making that choice now would make it based on sound business principals.
Given the EPRU’s “lowly” Rugby status over the last 20 years or so, I would immediately ask how many suite holders they had immediately prior to moving away from Boet Erasmus?
Again, some of the stories that did the rounds regarding who owns what and what was paid for certain rights in regards to the new stadium, make one wonder whether anything was above board and done on sound business practice.
Riaan Oberholzer reportedly made a relatively small cash injection into Rugby in the EC and effectively gained all control of the new stadium as a result of the “deal”.
TonyM who sometimes blogs here knows all of the details.
Anyway, (dirty) water under the bridge. Kings need to sort things out if they don’t want to be relegated to the Rugby gutters again.
They’ve been given a lifeline, but seem to be self destroying. I guess the current economic climate is not helping in attracting investors, but that is the same for all of the Unions.
@ Scrumdown:
I guess it just seems like one of those things where we will never know the whole truth, so it is hard to hold a specific entity liable… as you say though, Boet Erasmus is part of the past, the Kings have bigger problems… and their problems will spread to SARU’s problems, and then it will be our problem.
Things need to change.
grootblousmile wrote:
88
Neeman, shame on you – If you want to hold yourself out as a journalist, please research the facts before grabbing your poison pen:
1. Boet Erasmus is owned by the Nelson Mandela Metropolitan Municipality – not the EPRU;
2. The EPRU was a tenant, as was a then Port Elizabeth soccer club, Bay United;
3. The last rugby match played at Boet Erasmus was on 3 July 2010;
4. The stadium was still used as a logistics centre during the 2010 FIFA World Cup tournament;
5. The Metropole seemingly had no further use for the stadium and it was officially closed during 2010;
6. The Metropolitan Municipality seemingly made no effort to maintain and secure the stadium;
7. Vagrants moved in and stripped the stadium, leaving only the concrete structures.
8. Since vacating the stadium and moving to their beautiful new home, the EPRU was not, and is not responsible for the upkeep, maintenance and security of the Boet Erasmus stadium – the municipality, as owner of the facility, was and is;
9. You are recklessly (or purposefully), and unjustifiably, spreading untruths & stirring shit.
Scrumdown wrote:
88
Incorrect:
Kings Park is not owned by the KZNRU, but by the Municipality (as was the case with the Boet Erasmus stadium). KZNRU have leasehold rights to the stadium. The municipality is trying its level best to move them across the road to the soccer stadium, but to date the rugby dudes won’t budge.
@ Angostura:
I stand corrected.
Do you know how long they still have lease rights for?
I fear they are fighting a losing battle to stay there if they don’t own the place.
At least the Lions have the backing of the City of Johannesburg.
erratum
KZNRU have = KZNRU has
@ Scrumdown:
I don’t know the duration remainder of the current lease term.
Of course it is a losing battle in the sense that one day they will have to move, but in the meantime the battle is probably more about securing better lease terms and better “rugby facilities”.
It is not that the FACTS re Boet Erasmus are unknown – I had previously (as recently as December 2014) on this very site posted facts, sources and pictures about Boet Erasmus stadium; here, go fetch:
http://www.rugby-talk.com/2014/12/western-province-decides-to-stick-with-newlands/
Sad, sad state of affairs down in the EC. Pity that their powers that be are so un professional its not even funny. I really feel for the players and fans.
25 @ Lion4ever:
Players are “professionals”, they can go elsewhere.
The LONG SUFFERING fans is another thing.
Maybe time for THEM to lobby for change?
Clearly the current management are not getting it right.
@ Scrumdown: The players are unfortunately under fixed term contracts. I suppose if the union does not pay them, the agreed amount, that is a breach of contract, which will then allow the players to negotiate early releases. However, until such time as that happens, they are stuck where they are. Ideally, the Kings also need a strong coach who can implement proper structures, and a president who has the union’s interest at heart, and not his own. Then maybe the Kings will start being competitive.
Of course, with the Watsons and the Kings, one always wonders who is getting paid and who is not.
The coach hasn’t been reported as going on strike so does one assume that he is still being paid?
Similarly, their marquee player Luke……. is he receiving his pay late …… or is he being treated differently by the board.
I do feel for the ordinary players at the Kings but it seems that the EPRU has been in a mess for ages now.
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