Ken Borland

While the Sharks team has scrapped their way into the SuperRugby playoffs, an off-field battle has been polluting the waters around KwaZulu-Natal rugby. John Smit, who has announced he will be stepping down as chief executive, with Gary Teichmann, another former Springbok captain, announced this week as his successor, answers Ken Borland’s questions about the controversies and successes of his term.

What has caused the delay in the financial statements?

JS: Essentially we were renegotiating our debt/equity situation and the favourable outcome was announced this week with the recapitalisation of shares. It has some complexities, but in essence SuperSport have acquired 9% from KZNRU and then both entities have been issued more shares, together with another financial instrument, the net effect of which is that the Sharks have R40m recapitalised. Furthermore, we were trying to make sure that any future arrangement benefited our schools, clubs and development programmes. To this end Supersport really stepped up to the plate and we are most fortunate to be able to count on them as a shareholder. They will support our amateur organisation to grow our school base, clubs and support our development programme. We’re in a great space.

The economic downturn has affected all the franchises, but just how badly off are the Sharks?

JS: I don’t think it is news that our franchises are under pressure with attempting to retain players while competing with foreign currency, but we as a franchise had to do something to stem the tide and create a business plan that takes us back to operating successfully on both fronts, on the field and off. With this amazing move from SuperSport to inject R40m into the Sharks we can now realistically look at having a profit-bearing budget for the first time in over a decade by 2019. We have had to think smartly as to how we contract players and as frustrated as people have been this year with on-field performance, our new, much younger squad with far less internationals has in its first year together qualified for the playoffs, which for me is a great sign considering the draw of death we were in. This group is signed with us for the next few years and I can’t wait to see how they blossom. Our financial performance in 2016 is right on track and will reflect some of the major changes already implemented. Losses should not exceed R5m and hopefully we do a little better.

How has your relationship been with KZNRU president Graham McKenzie and chairman of the board Stephen Saad?

JS: These two men as well as others on the board have been very supportive of me in my tenure, Stephen has given me so much of his time, for which I am truly grateful as he runs a massive business, values time with his family immensely and he has always found time to assist with every issue I brought him over the last three years.

Are you satisfied with the number of sponsors on board and the key relationships you have developed for the union during your time as CEO?

JS: This is probably the area of the business I enjoyed most and looking back on the revenue we managed to increase on the sponsorship front over the last three years is pleasing. The fact that Cell C have bought into the vision and plan for this team’s future by renewing for a further three years is probably our biggest victory in this rebuilding phase. The other very important relationship that needed mending was with our very own city. Being one of Durban’s greatest assets I found it sad how far removed we were from each other and can proudly say that we now truly are partners. Durban Tourism has been instrumental in us being able to host the All Blacks this year and from there the discussions around a possible stadium move emerged, now knowing full well that any such move would need to benefit both parties should it happen.

You have been criticised for getting rid of Sharks stalwarts like John Plumtree and Rudolf Straeuli, what were the reasons for your decisions?

JS: I think in my three years one thing I could count on was that every time the team lost I was guaranteed to hear or read about Plum not being renewed! So much has been written and said about this issue but I have to say I was devastated at how it was handled. I had a very different idea in my mind of how this process was going to unfold while still in the UK, until one journalist and ex-coach decided to play their part. Never was it my intention to have Plum treated like that and he is justifiably angry. The discussion I wanted to have with Plum was to be one-on-one to ascertain where he saw himself currently and why he believed we hadn’t excelled at SuperRugby yet with the quality of squad we had. One needs to remember that coming in as a new CEO making that change was not an easy one or one taken without the consultation of many players, board members and rugby people close to the brand, with the most important part of this process being taken away by not being able to discuss with Plum himself. The irony is Plum had for months prior to my appointment been asking my predecessor to extend his contract with no luck. It is sad for me how it turned out, Plum was a friend of mine and as a coach I enjoyed playing under him while at the Sharks.

Rudolf asked to leave when offered the Lions CEO post. My relationship with him is still strong and I have always enjoyed Rudolf, his success at the Lions is no surprise to me. He was a great asset to us.

Do you have any advice for your successor?

JS: Wow, how long do we have! On a serious note though, I’m delighted that Gary Teichmann is our next CEO. We have sat down and discussed the areas integral to the business and where the possible hurdles lie. My advice to him was to try and block out the noise and focus on the job, he too will have similar challenges as I did being a high-profile person coming in and it’s important he knows that the same people who pump up his tyres now will slash them at will when they don’t get what they feel they need. So the best advice I can give is the same advice I was given many years ago: Decide your direction of journey, stay on course and don’t be distracted by either the good or bad noise along the way.

Coach Frans Ludeke faces a tricky selection this week as several star players are waiting in the aisles as the Vodacom Bulls look to back up their impressive win over the Reds with a crucial triumph over the Sharks in Durban on Saturday.

Springboks Adriaan Strauss, Jan Serfontein, Handre Pollard and Akona Ndungane are all available for selection again, while flank Lappies Labuschagne, one of the Bulls’ best players in the opening weeks of the competition, has recovered from a shoulder injury that saw him miss the last three matches.

Hooker Strauss and flyhalf Pollard should certainly start against the Sharks, but the fine form of Burger Odendaal at inside centre means Ludeke should perhaps consider playing Serfontein in the number 13 jersey he wears for the Springboks.

Labuschagne will probably return off the bench, with the highly-talented Arno Botha match-fit and ready to continue in the number seven jersey.

With the back three of Jesse Kriel, Francois Hougaard and Bjorn Basson performing so well in recent weeks, Ndungane is unlikely to break into the starting XV after recovering from a broken hand. He will even struggle to get on to the bench because Jurgen Visser pretty much provides specialist fullback cover for Kriel, unless Ludeke creates a space by leaving out Piet van Zyl and uses Hougaard as the reserve scrumhalf.

The Sharks are currently in a hole but the possible return of Jannie du Plessis, Beast Mtawarira and Co could continue the revival in spirit that was seen against the Lions at Ellis Park at the weekend, but in terms of confidence, the Bulls are probably going to Durban at the best time.

Ludeke’s men are leading the chase for the South African SuperRugby Conference title and victory over the Sharks could eliminate the KwaZulu-Natalians from contention, with the Bulls at least six points ahead with a game in hand.

The following weekend the Bulls travel to Cape Town to take on the Stormers followed by a crunch local derby against the Lions at Loftus Versfeld and then their overseas tour. So the next three weeks are absolutely vital for the three-time champions as they look to gather as many points as possible.

It can only be a vote of confidence when one of South Africa’s financial powerhouses agrees to become your national team sponsor – across all three formats – particularly when they parted ways with you just six years previously because of misgovernance and the way they were treated, so Cricket South Africa had reason to celebrate this week and reflect on how far they have come in terms of corporate governance.

It’s the first time one sponsor has been found for all three teams, the Test, ODI and T20 outfits, and the four-year deal will allow just one name on all the replica shirts CSA sells. The fact that it is no longer an alcoholic brand on the shirt also allows huge numbers of people to now buy them whereas in the past their religious beliefs precluded them from wearing that logo, so there will be a sizeable financial benefit there as well.

It’s some much-needed good news for the Proteas in what has been a tough year for them. CSA chief executive Haroon Lorgat optimistically said at the sponsorship announcement that he believes the slide down the international rankings is only temporary.

“These have been tough times but I’m sure the team will provide the desired returns for Standard Bank. I believe they are still a world-class team despite the poor recent results. I think it’s just a blip for a team that is still in transition.

“We believe the system will still provide great players, especially after the three reviews we are currently running – into the domestic structure, a relaunched T20 league and the national team set-up, especially why the Proteas keep falling short at the final hurdle in major global tournaments,” Lorgat said.

Transformation is still a major issue for CSA – some of my sources tell me that the reason for the sudden postponement of the initial Standard Bank announcement was that the sponsor wanted a transformation clause inserted into the contract, others have denied this – and the dissatisfaction of sports minister Fikile Mbalula, however obxnoxious he is being, is a threat to their future plans.

There is a meeting on Saturday between CSA and Mbalula, and this is going to be a crucial sit-down to see if they can iron out the differences that were exposed by the minister’s shock announcement on April 25 that he was implementing punitive measures against the union.

“The unparalelled support that we enjoy – as Temba Bavuma approached his debut Test century at Newlands there were 10 million TV viewers for the first time – shows that we can be very proud of our transformation initiatives that are bearing fruit. We know the minister of sport is not satisfied with certain areas, but we will engage him. We strongly believe that transformation has to happen from the bottom up and we firmly believe that we need it for strategic reasons.

“It’s fair to say that we were caught by surprise by what the minister had to say, but we will meet this Saturday and I’m confident we will come to an understanding. Transformation is about more than targets, it covers our entire business. We are clear that it must be from the bottom up, but we need resources and support from government, in particular the departments of sport and recreation and basic education. It will be the only way to sustain our business into the future, never mind our moral obligations,” Lorgat said.

Apart from the poor corporate governance of the previous CSA administration, Standard Bank were also chased away in 2010 by the frustrating fashion in which they were treated by certain CSA staff, who did not seem to care that these were the people investing in their sport and paying a large proportion of their salaries at the end of the day. Fortunately that culture is long gone at CSA.

From the media’s perspective, we had some rip-roaring times with Standard Bank and it is with delight that we welcome them back into the pressboxes around the country.

It would be naïve to think, after all the dramatic revelations this week of just how far the tentacles of the Guptas have infiltrated into practically every organ of state, that sport in this country is okay. Never mind football’s problems now that Fifa have named South Africa as being complicit in bribery.

Sports Minister Razzmatazz may just want to carry on partying and living the life, hoping it all just goes away (“Fifa must retract”, have you ever?), but the government’s ability to make things just disappear doesn’t work so well in overseas courts.

And cricket could face another day of reckoning once it is exposed just how thoroughly Cricket South Africa sold out to the Guptas. It was a few years ago, but many of those same, morally deficient administrators are still on the board.

As with so many of CSA’s problems, it all started with the IPL South Africa hosted in 2009. Initially it all looked okay, a wonderful jamboree of cricket brought to our shores. But it didn’t take long for the sordid underside of the tournament to become visible.

Such a billion dollar event was obviously going to be irresistible to the rapacious Guptas and their fingers had to be in the pie. The Family (ironically, this is how they are known in cricket circles) were involved in the assault of a man in the Wanderers Long Room and when the police were called they were instructed by the Guptas to arrest the victim. It is believed he was subsequently deported.

The IPL was moved to South Africa due to security concerns surrounding the Indian general election, and the South African government instituted a requirement that anyone travelling from troubled areas of India to the tournament would have to undergo a 30-day security clearance process. But when all the Guptas’ friends from Uttar Pradesh wanted to come over for the IPL final, this requirement was mysteriously waived for them, allegedly on the instruction of the family.

A leading administrator of the time says “Many cricket administrators colluded with the Guptas, like the politicians. The Guptas controlled the administrators and Gerald Majola, especially, was their man. He was the means to their control and so, when we were fighting him, we were actually fighting the Guptas.”

Little wonder then that, when some board members, with the support of then BCCI president Shashank Manohar, called for clarity as to how the amount of R400 million paid to CSA for the tournament was spent, there was a furious response from other directors and KPMG were prevented from doing an audit.

There is no doubt there was a you-scratch-my-back-and-I’ll-scratch-yours relationship between CSA and the Guptas. The Guptas even had their family spokesman, Gary Naidoo, sitting on the board.

When Majola was finally removed from office, his successor, Jacques Faul, faced a vicious onslaught from The New Age, the Gupta newspaper.

Board members have often been invited to Saxonwold and in return the Guptas are used to being treated like royalty at cricket matches, demanding their own tables and such like. The Guptas invited the CSA board to 2010 soccer World Cup games and CSA had board meetings in the family’s R50 000 a day penthouse at the luxurious Oyster Box in Umhlanga Rocks. Security measures that have been in place for everyone else attending matches, including top CSA administrators, have been waived for the Guptas because they refused to comply.

No one seems to know for sure how much per annum stadiums like Willowmoore Park, Newlands and Kingsmead received for Sahara [the Guptas’ computer company, they even “borrowed” the name of the more famous Indian version] getting the naming rights; but the talk is it was a negligible amount.

The finger has also been pointed at TV broadcasters, with a schools cricket game at St David’s being shown live in prime time; co-incidentally one of the Gupta sons was playing.

Cricket administrators also speak of the build-up to the IPL when they were told by the Guptas not to bother keeping then sports minister Makhenkesi Stofile informed of proceedings because “we have been to the cabinet kgotla and he won’t be sports minister for long”. That’s another thing Fikile Mbalula has to answer for, given his denials about how he was put in his post in the first place.

The day is hopefully coming soon when South Africa is rid of this parasitic family, whose presence must become as unpopular as e-toll gantries given how they have sucked the blood of the people along with their corrupt accomplices.