Ken Borland

South African rugby fans can rest easy that the four Rainbow Cup franchises won’t merely be going through the motions in yet another tournament of local derbies when the new competition kicks off on Saturday, with the massive incentive of a place in the European Champions Cup possibly being up for grabs.

Talks are apparently underway for the winners of Rainbow Cup SA to be given a spot in the 2021/22 European Rugby Heineken Champions Cup. That prestigious and lucrative tournament has prizemoney of about one million euro for the champions – the equivalent of nearly R17.5 million, which would be a huge boost for any of South Africa’s franchises given the constrained economic outlook for rugby in this country.

The Champions Cup brings together the 20 top teams from the three major European leagues – the English Premiership, France’s Top 14 and the Celtic Pro14, in which the four South African franchises are scheduled to appear later this year.

Conquering Europe may be as ambitious a plan as some of astronautics’ efforts to land on Mars but the rewards are great and will be worth the immense planning and effort. One of the things that will be required is larger squads and talks are already underway with SA Rugby for them to increase the 45-player limit for franchise squads.

Bulls coach Jake White is certainly in favour of further expansion into Europe.

“Hopefully something will be formalised because we want to take part in the Heineken Cup. There are massive incentives to play in that tournament and I remember when I coached Montpellier, the French clubs put a lot of pressure on you to qualify for that event. The importance was shown when Leinster played Munster in the Rainbow Cup last weekend and rested 13 players because they have a Champions Cup semi-final this weekend,” White said on Friday.

“Leinster have used 57 players this season in all competitions and so we’ll try and find out from SA Rugby if we can have bigger squads and more money because it’s important we get the same resources as those European clubs. If we lose players to the Springboks and get a couple of injuries, will we be strong enough to compete at three levels – Currie Cup, Pro14 and Europe?”

Covid-19 has dealt South African sports fans a cruel deck of cards, never mind a hand, with the much-anticipated British and Irish Lions rugby tour now almost certainly not happening in this country this year. But there is still something to look forward to with the Rugby World Cup Sevens coming to Cape Town next year.

Megapro, who are the giants of commercial rights and sponsorship sales in South African sport, were appointed as the exclusive sponsorship sales agency by WorldRugby earlier this month and they are busy ensuring they lay on a feast of entertainment. The overriding hope, of course, is that the pandemic has eased to such an extent by September next year that sport would have returned to normal with spectators cramming into the wonderful Cape Town Stadium.

It is reassuring to know that it is a former Sevens Springbok, Steven Hunt, who is spearheading this drive as the sales manager of Megapro.

“It’s a waiting game still for the Lions tour, which is sad because it only comes around every 12 years and we could miss out on the enormous benefits it brings to the country. But the light at the end of the tunnel is the Sevens World Cup next year and there is great excitement around that. Everyone wants to see sport return to normality and the hype of a big event.

“At the moment, putting on big sporting events is weighed down with challenges, but a world cup unites the country and to lose that feel-good factor is the major loss we are currently having. But it’s good to see the professional set-ups moving again, it shows why keeping sport going is so important. The Sevens World Cup could have a very similar impact to the Lions tour,” Hunt told me in their Bryanston offices this week.

High performance sport is like a fire that needs oxygen in order to burn, it needs spectators in order to oxidise and catch alight.

“Professional sport needs spectators, both for the commercial aspects and for the players themselves. It never happened to me in my career that we ever played with no crowds, but it affects the whole life cycle of the game. And Sevens is all about the fans and the fan engagements, the festivities and fun. The whole event lives on that energy.

“Obviously the positive about this Lockdown is that the supporters can’t wait to come back to live events and hopefully they come back stronger. We’re 100% expecting the crowds for rugby to come back bigger, better and stronger. There is still massive value in playing the tournament in an empty stadium though because we will still be putting it in front of the world,” Hunt said.

South African rugby was on an absolute high when Covid struck, having just won the XVs World Cup in sensational fashion in Japan, but now they are in a fight for survival. How long this ‘state of emergency’ for SA Rugby lasts is anyone’s guess because government is ill-equipped to provide many answers or an efficient vaccination programme.

“It’s terrible that the great momentum of the 2019 World Cup has been lost. SA Rugby pushes for answers about when fans can return but there are still none – the numbers could still go up, we just don’t know. And it boils down to WorldRugby whether there will be no spectators or not at the World Cup. Fortunately we have the Cape Town Sevens this year as the last event on the circuit and we can gauge a lot from that.

“The Cape Town Sevens has set massively high standards as an event so we will stick to that formula, keep how that is structured. SA Rugby also had success with the event in George and Port Elizabeth, so the World Cup is in good hands. It’s also the first global event that we have the exclusive rights for, so it is massive for Megapro. It will be a huge success, a top-class tournament, as long as there is no more Covid,” Hunt predicted.

South African rugby may miss out on the British and Irish Lions tour, but hosting the Rugby World Cup Sevens with international spectators will be like getting a kitten for Christmas.

No spectators are going to be allowed at Randpark Golf Club when the prestigious Joburg Open is held there from November 19-22, but there will be plenty of entertainment for golf fans at the club both before and after that with the installation of the new InRange ball-tracking facility at their driving range.

InRange is a system designed by engineers in Stellenbosch who were global leaders in the field of tracking technology for radio telescopes and radar, who turned their attention to tracking the flight of golf balls. The result is not only a package that is used by leading professionals, golf clubs and coaches, but which also has tremendous entertainment value.

Golfers previously going through the motions on the driving range can now track each and every shot and can play under added pressure in the system’s game mode that allows multiple players to compete against each other in contests such as Longest Drive or Bullseye. With four buckets of balls costing less than R400 for a foursome, this sounds like great fun for a group of golfing mates.

The technology is also available on an app, allowing individuals to enjoy the experience at a cheaper cost.

But for the weekend of November 19-22, Randpark will become a place of national importance and closed to the public as the European Tour and their top international golfers arrive to participate in the Joburg Open. As Randpark GC chief executive Francois Swart explained, they simply cannot risk any Covid transmission occurring, especially with South Africa hosting the Alfred Dunhill Championship at Leopard Creek and then the South African Open at Sun City on the following weekends.

“It’s very important that the safety protocols are adhered to and we have to manage the bubbles and ensure the safety of the players, not just for this tournament but for the next two as well. I think not having spectators is the better call and unfortunately not even our members will be allowed at the club. It’s the right call because it’s a big investment.

“The players are the ones who have the most risk and if any of them get exposed then they’re out for the rest of the tournaments as well. Not having spectators is normal practice at this time on the European Tour and they have had a lot of input because they have staged big tournaments already this year. They’ve given us valuable insights and I have all the confidence in the world that the Joburg Open will go off beautifully,” Swart told The Citizen.

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.