SA Rugby (SARU) almost bankrupt, records loss of R62 million in 2017

The South African Rugby Union (SARU) is on the verge of financial collapse after recording a net loss of R62 million last year.

While most South African rugby fans are more worried about the Springboks dismal form, despite the promise of revitalisation spearheaded by new coach and director, Rassie Erasmus, the real problem facing the country’s rugby may be its abysmal bank balance.

Springboks losing more than just matches
While SARU’s financial struggles may be a combination of waning local support and mismanagement, the organisation points to losing out on the 2023 World Cup bid as the reason for its woes.

As reported by EWN, SARU released its embarrassing financial report to Parliament’s Sports Portfolio Committee.

Would you like to advertise on this very popular website ?? Just drop me an e-mail at tersia@v.co.za, and I will tell you how !!

2023 World Cup bid defeat cost R38 million
The rugby organisation says its financial strife could’ve been averted had they won the World Cup bid. A victory in this regard would’ve pocketed the Union a cool R38.5 million in sponsorship deals. But, France won the bid, which in itself was a surprise to many, and SARU’s dreams came crashing down.

But, that’s not the only mishap which has drained the rugby union’s coffers. According to SARU, losing both the Cheetahs and the Kings and a European league has cost R33 million.

SARU losing local franchises
The Cheetahs, based in the Free State, and the Kings, from the Eastern Cape, struggled to make an impact in recent Super Rugby encounters, and as such, were relegated from the league.

Both team refused to dwell in defeat, and decided a move to the Northern Hemisphere – where players get game time and a handsome pay check.

The CEO of SARU, Mark Alexander, says that the Union was close to liquidation because of the loss of sponsorships. In fact, the only thing still keeping finances afloat are sponsorship deals with MTN, Asics and FNB.

But more than brand deals, the only thing paying players’ salaries and supporting provincial unions is a massive broadcasting deal with SuperSport.

Would you like to advertise on this very popular website ?? Just drop me an e-mail at tersia@v.co.za, and I will tell you how !!

Worryingly, local support is waning, which will no doubt have an impact on SuperSport’s viewership numbers, and, in turn, affect SARU’s already uneasy bank balance.

SARU’s cash reserves now sit at just R15.7 million.

Springboks Fixtures

Would you like to attend the Nelson Mandela Bay match and don’t know where to stay, well just Click Here !! to select a place or would you like to attend the Loftus Versfeld match, well Click Here !! and start you search !!

Looking for a cheap flight or would you like to rent a vehicle? visit SKY.co.za now!

Saturday, 15 September 2018
Westpac Stadium
New Zealand
9:35
South Africa

Saturday, 29 September 2018
Nelson Mandela Bay Stadium
South Africa vs Australia
17:05

Saturday, 6 October 2018
Loftus Versfeld
South Africa vs New Zealand
17:05

Saturday, 10 November 2018
Stade de France
France
18:00
South Africa

Would you like to advertise on this very popular website ?? Just drop me an e-mail at tersia@v.co.za, and I will tell you how !!

Saturday, 17 November 2018
BT Murrayfield Stadium
Scotland
17:00
South Africa

Saturday, 24 November 2018
Principality Stadium
Wales
19:20
South Africa

Would you like to advertise on this very popular website ?? Just drop me an e-mail at tersia@v.co.za, and I will tell you how !!