Ken Borland

There seems to have been some misinterpretation of Jurie Roux’s comments this week to the extent that the Australian Associated Press news agency claimed that the SA Rugby CEO had made the call for legal action to be taken against New Zealand Rugby for their plans to basically pull out of SuperRugby as we know it.

The truth is likely to turn out to be almost the opposite. While Roux did say “New Zealand have kicked themselves out”, he also added that they had “every right to determine their own future” and that discussions were happening with all Sanzaar partners.

You see, the Covid-19 pandemic would almost certainly qualify as a ‘force majeure’, the trendy new legal term borrowed from the French for what we used to call Acts of God. A ‘force majeure’ is an unforeseen and uncontrollable circumstance that makes it impossible to fulfil a contract.

In terms of rugby, it is clearly impossible for SuperRugby in its usual format to happen in 2021 if international travel is not yet allowed, if there are strenuous quarantine measures still in place or if the paucity of flights makes overseas trips prohibitively expensive.

Roux did say that there are Sanzaar legal agreements in place and that if anyone ignored their commitments to them then they would be liable to legal action, but with that French word coming into play, it would clearly take some pretty soulless leadership to try and sue a union that is just trying to keep themselves afloat in this time of economic catastrophe.

The shoe is on the same foot when it comes to South Africa because even if New Zealand wanted to proceed with SuperRugby as per normal next year, our franchises probably wouldn’t be allowed into the country without quarantining for two weeks and the costs of travel would be unaffordable.

Roux is a shrewd man as well and, although he has never publicly dissed the brand, he would have been well aware that the current SuperRugby format had lost the support of the general rugby-loving public and was busy pushing SA Rugby into poverty. He admitted this week that for more than a year he has been looking at additional options for SA Rugby and said “we are a long way down that road already and some of those options probably suit us better”.
This surely means a move into the lucrative Northern Hemisphere market. The Springboks and our top four franchises have plenty to offer European competitions as well – it is not as if we are the peasants of the game, we are the world champions and one of the biggest broadcast markets for rugby in the world.

But while SuperRugby may well be discarded like the old, worn out pair of boots it is, there is no doubt South Africa want to maintain a good relationship with New Zealand, traditionally their greatest rivals. Roux spoke about how the Rugby Championship is not only a significant revenue-earner for SA Rugby but it also enables them to cross-subsidise so many of their other competitions.

Those Sanzaar legal agreements are going to force New Zealand, Australia and South Africa, and Argentina, to the negotiating table to thrash out whatever win-win-win solution they can come up with. Leverage is always the name of the game when it comes to negotiation and while South Africa have the numbers and therefore the money to bring to the table in a big duffel bag, and New Zealand also have a large bag based on their historical record as having the best teams in southern hemisphere competition and therefore the biggest drawcard, it would seem Australia and Argentina only have sachets to barter with.

Nobody would want Australian rugby to be isolated like their country was before James Cook arrived with his cutlass, but the fact is they are not in a position of strength when it comes to negotiating the future of Sanzaar.

It is not too surprising that New Zealand do not want to accommodate all five Australian franchises, but if allegations that they have been in clandestine contact with a couple of them are true then that would be as offsides as the former SA Rugby president who fired the Springbok coach by fax.

Whatever comes of the negotiations, though, it would seem South African rugby fans can look forward to a stronger Currie Cup-type tournament locally, a refreshed, shorter, crossover event with the other Sanzaar teams and more of our franchises dunking their toes into European competition.

With the British and Irish Lions touring here next year, the stars of the UK game could become the same sort of attractions/nemeses as the likes of Dan Carter, Christian Cullen, Richie McCaw and Stephen Larkham.

And given the time zone, watching our teams playing in Europe will be much easier for those of us who tend to suffer from moderate dysania.

Ever since leading the most transformed Springbok side yet to World Cup glory, Siya Kolisi has gone beyond being merely a sports star and has become a powerful symbol of change and unity in South Africa, so it was no surprise to hear SA Rugby CEO Jurie Roux say the national captain has every right to express his opinion.

Roux was responding to questions over how SA Rugby would respond to Kolisi’s social media post this week in which he supported the Black Lives Matter movement and spoke of his difficulties in fitting in with the Springboks and their culture. He said his culture was not represented in the team and he felt he had to conform in order to be accepted. Kolisi added that “the next generation can’t suffer like we did”.

Kolisi also pointed out that World Cup-winning coach Rassie Erasmus had addressed the issues and transformed the Springbok team both in terms of personnel and environment.

“Siya is his own person and he got to where he did by himself and led us to the World Cup, so it’s not for me or anyone else to tell him what he must say. We must give people the opportunity to tell their stories, and people will either support or not support what they say, but that is always the case. Personally, I respect his comments.

“Black Lives Matter is basically about respect for others and how we treat people on a daily basis. That should be first and foremost, whether we are talking about BLM, Farm Attacks or Gender-Based Violence. We’ve seen that rugby can have an influence in society and we need to own up to those issues and not steer away from those conversations,” Roux said this week.

Roux made the call for more discussions over improving opportunities for Black people in the sport.

“Let Black people tell their stories and what’s more important is for us to listen and hear what they are saying. We must not shy away from awkward truths. We must continue dialogue and figure out together how to bring change. Is our transformation plan robust enough? These are very serious matters that transcend way beyond sport.

“Maybe some elements of our plan do need change, for example when it comes to Black coaches. Rassie has presented a plan to fast-track Black coaches and we need to look at that more seriously. I’m the first to acknowledge that things have gone wrong, even if we have made some very good progress in transformation. As a federation, rugby has been very good at acknowledging our sins of the past,” Roux said.

The country’s rugby players may have returned to training this week but planning for them to actually play competitive matches is not getting any easier with Jurie Roux, the CEO of SA Rugby, confirming on Tuesday that there is “about zero chance” of South Africa hosting any international rugby this year.

And the effects of the Covid-19 pandemic are likely to deeply affect the 2021 rugby calendar as well, necessitating major changes in local rugby. Roux did reiterate though that SA Rugby are still hopeful that they will be able to return to play at least by mid-September with local competitions.

“It is still a very fluid situation and there are multiple factors feeding into our daily decisions. But if anyone thinks we are going to return to a format that is close to what existed before this pandemic then they are making a big mistake. The market has corrected itself, it was due a change and it has been brought on by Covid. Rugby will be significantly different, we are trying to prepare for 2020/21 but everything else is in flux.

“There are no plans to host any international games this year because there is about zero chance of entrance into South Africa with our borders closed. The only chance of playing international rugby is in the New Zealand bubble in the Rugby Championship. The broadcast revenue from the Rugby Championship is significant and international rugby will hopefully resume towards the end of October, whatever we can fit in before mid-December,” Roux told an online media conference on Tuesday. a

International travel is not expected to return to normal until midway through next year and quarantine requirements are also squeezing the calendar, and while Roux said SuperRugby was not dead after New Zealand expressed their preference for a trans-Tasman competition with Australia, SA Rugby are hard-pressed to find space for a cross-conference competition before the British and Irish Lions tour to South Africa kicks off in early July.

“They stated their preferred structure due to restrictions and the costs of travel with fewer flights to New Zealand, and there is every indication that ourselves and Argentina will not be able to go there without spending two weeks in quarantine until the end of May, so the previous format of SuperRugby is just not viable. So New Zealand will play domestically first and then hopefully we can have some sort of crossover SuperRugby.

“So the plan is for us to play domestically from February to April and if the borders are opened then we can have some sort of format across conferences, with Argentina most likely with us. But it all needs to finish by the time the British & Irish Lions tour starts in the first week of July. We are all part of the Sanzaar joint venture and there are legal agreements in place,” Roux said.

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.