Ken Borland

SA Rugby CEO Jurie Roux said recently that every union whether provincial or international is going to join up with private equity partners either sooner or later. Rugby has been one of the slowest sports to embrace professionalism though and I can hear many fans wailing that private equity is going to ruin the game.

“Private equity in rugby will have a massive influence, it will probably control rugby. And yes, SA Rugby is in discussions with private firms, but I don’t think there’s a union that’s not talking to someone. We all live in a post-Covid world that is now a much smaller pond and there is the opportunity now for investors to buy things at much cheaper prices. Private equity is here to stay, you’ll either join early or late, but join you will,” Roux said in an online press conference earlier this month.

There is perhaps going to be understandable anxiety that rugby is going to end up in the same sort of mess as the Premier Soccer League has with the controversial sale of the famous BidVest Wits club to a little-known National First Division club, Tshakhuma Tsha Madzivhandila, based in Limpopo. Thanks to BidVest cynically pulling the plug based purely on financial considerations, 99 years of history is down the drain, a club that has won nine top-flight trophies and produced players such as Gary Bailey, Peter Gordon, Richard Gough, Sam Magalefa, Thulani Hlatshwayo and Benson Mhlongo for all intents and purposes no longer exists.

Never mind Western Province leaving Newlands, can you imagine the outrage if it was announced that the Bulls were moving to Polokwane and would henceforth be known as the Buffaloes?

But let me allay your fears by pointing out that rugby has mechanisms in place to prevent such stupid things from happening.

Before going to market, a union will split its assets between a commercial/professional arm, which will largely deal with corporate matters like sponsorships, advertising, marketing and broadcast deals, and an amateur arm which will hold assets like the stadium (whether they own it or have a rental deal) and ‘intellectual property’ like the team name.

Stakeholders can then buy shares in the commercial/professional arm. A private company can buy 25% of those shares and the union gets the cash, while the equity partner takes dividends while also hopefully driving up the commercial value of those properties.

Even though SA Rugby’s constitution now allows for private companies to own up to 74% of a union’s professional arm, as long as the ‘amateur’ administrators have done their paperwork correctly then properties like the team name or where they play should be totally protected even if the union is now a minority shareholder.

The Bulls have been amongst the first unions to really make private equity work for them, with Patrice Motsepe’s African Rainbow Capital Investments and Johann Rupert’s Remgro each owning 37% of the Blue Bulls Company. First prize to them because the influx of cash has allowed the Bulls to hire big-name coaches in John Mitchell and now Jake White, who is totally revamping the team with a host of quality additions to the player roster.

Perhaps the first thing for a union to ensure is that there is synergy between themselves and their private equity partners, so that they can work together to run a successful team.

Unfortunately there have been two unions in the news lately for getting it all wrong – the Eastern Province Rugby Football Union and the Western Province Rugby Football Union. Both those beleaguered unions seem to be suffering from a bunch of rank amateurs trying to run multimillion rand businesses.

After years of wrangling seemed to be coming to an end with the signing of heads of agreement to sell Newlands to Investec, WPRFU president Zelt Marais has unilaterally decided not to sign off on the rest of the deal, despite already taking an advance of more than R50 million from Investec. Interestingly, the WPRFU also owe Remgro R58 million for a loan. These are powerful enemies to have and one fears that the once proud union could be heading the same way as Eastern Province.

The embattled Port Elizabeth franchise just seems to lurch from one crisis to the next and fresh problems are now springing up between the company that holds the majority shareholding in the Southern Kings and the EPRFU.

Roux was not specifically talking about the Southern Kings or Western Province, but his message certainly applies to them when he said political interference tends to surface when administrators try to run their franchises as an amateur entity.

But to borrow from Saturday Citizen deputy editor Brendan Seery’s excellent Column, for every couple of Onions that have to be dished out to unions, there will be more Orchids given out to those who make private equity work.

Simply put, rugby is unable to survive this post-Covid world without them so, like the Wallabies and scrums, every union just has to find a way of making these partnerships work.

Kagiso Rabada said playing cricket in midwinter on the Highveld will remind him of the freezing water in ice baths during school camps in the off-season, but the new Solidarity Cup 3TCricket match to be played at SuperSport Park in Centurion on June 27 might be an even bigger shock to the system for cricket purists.

South Africa’s first taste of live sport and cricket’s return to action after the Covid-19 Lockdown will be a day of cricket lasting just 36 overs. But while this may seem to be a watered down version of cricket to go with such gimmicks as T10 and The Hundred, 3TCricket does at least bring some interesting innovations to the game.

Having three teams playing against each other at the same time, batting in six-over blocks, will change the flow of limited-overs cricket. And the Last Man Standing rule could provide for some thrilling conclusions to games. Paul Harris, the former top banker and Cricket South Africa independent director who is now chairman of wireless tech company Rain, who will present the Solidarity Cup, came up with the concept, and sharp cricketing minds such as former Hampshire captain and leading commentator Mark Nicholas, CSA director for cricket Graeme Smith and Proteas coach Mark Boucher have fine-tuned the idea. Former Springbok captain and Rugby World Cup winner Francois Pienaar, who has made such a success of the innovative VarsitySports stable, has come on board as CEO of 3TCricket.

“This is a new format and I’ve always believed that you can’t have too many formats of cricket. Just from my playing days we’ve had single and double-wicket competitions and limited-overs cricket has gone from 65 overs a side to 10 and everything in between. An eight-player, three-team format is perfect for kids and clubs who don’t have many resources, and the game has long searched for a format that will embrace all the players, no-one will be left at third man wanting to get involved.

“So we are throwing it out there, we think it is exciting and fresh, and hopefully as we come out of Lockdown it will inspire children to watch. Of course the stadium will be empty, but hopefully there will be full lounges watching on SuperSport TV. Last year’s World Cup in England showed that ODI cricket is not dead but we think this could breathe new life into the middle overs,” Nicholas, one of the founders of the 3TCricket company, said in a virtual launch on Wednesday.

The country’s leading limited-overs cricketers – barring the unavailable Dale Steyn and Imran Tahir – have all signed up for the game and superstars Rabada, Quinton de Kock and AB de Villiers have been chosen to captain the three sides that will launch a brave new era on June 27. Government have come on board with the Solidarity Fund being the beneficiaries of the fundraising efforts on the day.

“We envisage this format helping our pipeline and we will introduce it to schools and clubs. As temporary custodians of the game we are tasked with taking the game to the people, which is difficult in a country with such inequality, but this is another vehicle to do that, which is wonderful. We think it will have a big impact, maybe even internationally.

“The world has been starved of cricket and the goal is to have it televised worldwide and we are in conversations with our broadcast partners about that. It’s great to be part of something innovative, launching a new product, and it’s a nice opportunity to share it. But it’s going to be tremendous just to be able to see live sport again,” Smith said.

Having a sponsor called Rain is always running a risk for cricket, but in midwinter they should be fine.

Cricket South Africa president Chris Nenzani on Tuesday night denied that the organisation was afflicted by terrible chaos but admitted that the delays in holding former CEO Thabang Moroe’s disciplinary hearing were not good for the game, although unavoidable to ensure correct procedures were followed.

Moroe was suspended in December pending the outcome of a forensic investigation, and last week returned to the CSA offices, purportedly to ‘return to work’ as he believed his suspension expired after six months. This happened after the South African Cricketers’ Association, the players’ union, warned that the CSA Board lacked the will to finalise Moroe’s case.

CSA’s former Head of Sales and Sponsor Relations Clive Eksteen, who was suspended by Moroe in October and fired by CSA at the weekend, on Tuesday announced that he would be taking the organisation to the CCMA for unfair dismissal.

“I don’t think Cricket South Africa is in chaos although there are challenges we have to go through. We have to make sure we deal with certain in-house issues so they don’t impact on the game. We hoped by now that we would have been able to announce the outcome of the investigation into Mr Moroe, but unfortunately not and there is great disappointment over that at Board and Members Council level. It is not desirable that it take so long and we will take the necessary action to ensure CSA are protected.

“But I ask for understanding because we must complete a forensic investigation that meets the highest levels of governance and that is time-consuming. We have been promised by the investigators that the first part of the report will be ready by Friday and the Members Council will then decide the way forward. But set processes need to be followed so we don’t fall foul of the law. I can assure that the terms of reference of the investigation are as exhaustive as possible, but it is not common practice to make them public,” Nenzani said in a virtual press conference on Tuesday evening.

While Nenzani did his best during an hour-long conference to depict all CSA’s cups as being half-full, the organisation’s president since 2013 admitted that he should not have extended his record tenure by another term.

“One of the things I would have done differently in hindsight is that I would not have agreed to serving as president for an additional year. I regret that. But when you are an elected official you have an obligation to serve and so when the Members Council asks you to continue then you subject yourself to that. But the term of the president will come to an end in the AGM in September,” Nenzani said.

The Bisho schoolteacher refused to deny, however, that he has his eye on the position of International Cricket Council Chairman.

“As far as the position of chairman goes, the ICC has issued a moratorium on people expressing a desire for that post. They haven’t even opened the process of nominations yet, so it would be premature to make any declarations of being available or not being available,” Nenzani said.

Cricket South Africa’s Board can look forward to more legal action against them as dismissed Head of Sales and Sponsor Relations Clive Eksteen announced on Tuesday that he was taking them to the CCMA for unfair dismissal.

Eksteen was sacked at the weekend based on a single charge that was added to his disciplinary hearing after he was suspended on October 29 for his alleged role in the non-payment of image rights to the players’ union. That extra charge was related to a loss of $100 000 the CSA Exco alleged the organisation suffered because Eksteen negotiated a deal with Amul, the multinational sponsors of South Africa’s T20 series in India last year, for an amount less than had been approved by the CSA Exco.

While Eksteen said he was cleared of all charges related to the non-payment of image rights – the presiding officer finding that the former Proteas spinner was in fact instrumental in the South African Cricketers’ Association eventually being paid – and an additional charge involving an agreement he was not even part of between the SABC and a sponsor, he was found guilty of Charge 5 and dismissed.

Eksteen said this was despite him providing evidence that the agreement with Amul was signed by his superior, chief commercial officer Kugandrie Govender, and that she knew how much they had offered before she informed Exco.

According to CSA disciplinary processes, any appeal can only be over sanction and needs to be handled by the chief executive, who is the legal officer. But acting CEO Jacques Faul is not allowed to be involved in disciplinary matters according to his contract, so he forwarded the appeal to the CSA Board, who last weekend upheld his dismissal.

“The Chair’s finding that revenue was lost was directly contradicted by the evidence of CSA’s employees, evidence she ignored. Subsequent to my conviction, I presented evidence in mitigation. This included a variety of reputable testimonials. The Chair refused to accept pertinent testimonials into evidence. She also refused to accept that Charge 5 was a minor charge, way less serious than the SACA charges on which I had been acquitted.

“In addition, I am in possession of evidence which exculpates me, which has come to light after the conclusion of the disciplinary inquiry, which evidence was known to CSA at the time. In these circumstances, I shall immediately be referring a dispute to the CCMA regarding my unfair dismissal. All of the evidence presented at my disciplinary inquiry, as well as the additional evidence which has now come to light … will be laid out before the CCMA. My attorney and I are totally confident that I will be vindicated in due course. Unfortunately, I believe I have been made a scapegoat for the shortcomings of others and I believe further that relevant evidence has been ignored or overlooked,” Eksteen said in his statement released on Tuesday.

The CSA Board, who thus far have failed to take any action against former CEO Thabang Moroe, who is suspended on full pay after losses of millions of dollars under his watch, even had the gall last weekend to issue a statement saying Eksteen had been fired after “transgressions of a serious nature”. They failed to mention it was over a theoretical loss of only $100 000 and that it had nothing to do with the dispute with SACA, who have even come out in support of Eksteen’s handling of their image rights dispute with CSA, which involved a reported amount of R2.4 million.