WP in discussions with 2 global equity partners – Rasool
Western Province rugby are in discussions with two potential equity partners, chairman of the board Ebrahim Rasool announced on Tuesday.
The embattled union notoriously rejected an equity offer from MVM Holdings, who have since invested heavily in the Sharks, and WP Rugby recently endured the embarrassment of some of their own clubs asking SA Rugby to put the Western Province Rugby Union under administration because they believed the union was insolvent.
But Rasool said the organisation is not in as dire a situation as some reports have indicated.
“We are on the verge of detailed discussions with two global equity partners. The legal processes have started with the exchange of documents for due diligence. We are past the stage of huisvra, asking if we can visit, and are at the point of announcing the engagement. It’s just a matter of deciding who has the best dowry? We have a liquidity challenge because of no crowds, but there is no solvency crisis.
“We have engaged with SA Rugby after a request from certain clubs that we be placed under administration. Having looked at our financials, SARU has concluded that the allegations we were bankrupt are completely unfounded, we are completely solvent. We will be going through a hand-holding exercise with them in this time of short-term challenges, in a spirit of co-operation,” Rasool said in a media briefing on Tuesday.
The head of Western Province Rugby’s professional arm added that he was loving the revival of the Stormers team’s fortunes in the Rainbow Cup, which currently sees them in second place, four points behind the Bulls, who they play in their next fixture in Pretoria on June 4.
“We have had a turnaround of note on the field, two away wins has been a real revival. I think coach John Dobson has absorbed criticism and has lifted and inspired the players. I think the game-plan now will produce results. The fortunes of the Board have also had a Lazarus-like revival. We have been able to re-sign key sponsors, which shows confidence in the administration.
“We have a six-person committee that is working with SARU and looking at our property situation. We need their expertise and we need sustainable management of our assets, which is why we’re getting outside opinion, external, objective advice. We’re looking at a more sustainable deal and while we were more reactive with MVM, this time we’re doing all the proactive work,” Rasool said.