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.

Richard Pybus has been one of the real legends of domestic coaching in South Africa, having won nine trophies with the Titans and Cape Cobras franchises, but he began his career guiding lowly Border into a position where they were competitive against the big guns of local cricket. So when the former Pakistan and West Indies coach says plans to change the domestic structure, increasing the top level to 12 provincial teams, are not addressing the true problems in South African cricket then his views should be considered seriously.

“It’s a terrible idea,” Pybus said of the plan to do away with the six franchises at the top table of domestic cricket. “They are trying to fix the wrong thing. The issue is the administration of the game and not franchise cricket. Why are Cricket South Africa in their current financial position? They should review that. Why pull apart a highly effective system, the same sort of model that has given Australia consistent success?

“The issue is not our model but getting our administration right. Our problems are not about the franchise game, that’s giving us what is needed, which is incredible competition, the best 66 players in the country going up against each other. The franchise system was directly responsible and supported our national team getting to number one. We want strength versus excellence, not to dilute that,” Pybus told The Citizen from his house in Hermanus.

The 55-year-old Pybus said the domestic system needed to reflect the differences between the high-performance needs of the Proteas pipeline and those of growing the game.

“Our cricket has lots of layers and it needs to be clearer whether those layers serve the recreational game or the Proteas, with a lot of layers not really serving either of them. A lot of our cricket should not be professional and any changes should be about strengthening that level. We have a brilliant, multi-cultural game and it also needs to be inclusive.

“The development programme does have some issues, there are not enough players coming from Black communities, but that has nothing to do with franchise cricket. There are geographical and historical reasons for those issues. Coaching is also a real problem and it will take a generation to transform that because we have pushed all our senior coaches out, that intellectual capital is gone,” Pybus said.

The great provincial rivalry between the north and south was firmly in evidence as the Vodacom Bulls edged out the DHL Stormers 17-13 in their Vodacom SuperRugby match at Loftus Versfeld on Saturday.

In a hard-fought encounter that was an epic for its sheer brutality on the gain-line, it was the Bulls who showed the most steel and this win – against a side that has had the wood over them for the last few years – will no doubt be a massive boost in the growth of the young team coach Nollis Marais is building.

The Bulls had control of the scrums and had the Stormers under constant pressure in the lineouts so, even though the visitors had much more possession, it was the Bulls who were in charge, especially since they refused to yield an inch on the gain-line.

The Stormers looked after the ball better from the opening whistle and they were able to put the first points on the board through a Jean-Luc du Plessis penalty in the second minute.

But the Bulls exerted their dominance in the scrums from the outset and loosehead Oli Kebble went down in the first scrum, giving Francois Brummer the chance to level the scores for the Bulls.

The power-sharing continued for the rest of the first half, as the Stormers built the phases and pressure and the Bulls struggled to exit from their 22, allowing Du Plessis to slot another penalty, while missing another three minutes before halftime.

The Stormers were conceding penalties at the scrum though and losing lineout ball, while Lappies Labuschagne was superb at the breakdown, earning Brummer another penalty, while the Bulls flyhalf also missed an attempt on the half-hour.

The Bulls broke the 6-6 deadlock seven minutes after halftime with an impressive try by scrumhalf Piet van Zyl.

As much as Stormers fullback Cheslin Kolbe deserves respect for his brilliant attacking skills and courage in defence, he is vulnerable when he is isolated and caught with the ball, as happened when the Bulls launched an up-and-under from a free kick straight on to him. Wing Travis Ismaiel chased superbly and monstered Kolbe in the tackle, with eighthman Arno Botha in support to strip the ball off the fullback. Hooker Adriaan Strauss was then on hand to spread the turnover ball wide, centre Jan Serfontein putting in a chip over the scrambling defence that was gathered by fullback SP Marais, who sent Van Zyl racing over for the opening try.

Brummer missed the easy conversion – which in such a tight tiff between arch-rivals could have been crucial – but the Stormers’ breakdown woes did allow the flyhalf to kick a penalty five minutes later to put the Bulls 14-6 ahead.

Du Plessis pulled a penalty wide after the Stormers caused problems with a driving maul, but the visitors came strongly back into the contest with 12 minutes remaining with a try by centre Damian de Allende.

A little shoulder charge by prop Marcel van der Merwe on Schalk Burger – who was never far from the action – led to the penalty that gave the Stormers territory, and they bashed away on the Bulls line until the otherwise superb defence gave De Allende just enough leeway to storm over.

Du Plessis’ conversion made it a one-point game (13-14), but this time there would be no late try from the Stormers to break Bulls’ hearts.

The Bulls went back to the driving maul, made considerable progress, and Tian Schoeman, brought on for Brummer just a few minutes earlier, sent the perfect drop goal flying between the posts.

This meant the Bulls were out of penalty range (17-13) but they dominated the last five minutes in any case. Referee Ben O’Keeffe, who had had a good game until then, then took centre stage as he penalised the dominant Bulls scrum five metres from the Stormers line, missed the duffed quick-tap but then levelled matters by blowing the Stormers up for foot-up at the next scrum.

This win not only breaks a four-match losing streak against the Stormers, but it could also be a watershed moment for a young side that should now have enormous belief.

Scorers

Vodacom Bulls – Try: Piet van Zyl. Penalties: Francois Brummer (3). Drop goal: Tian Schoeman.

DHL Stormers – Try: Damian de Allende. Conversion: Jean-Luc du Plessis. Penalties: Du Plessis (2).