Stormers weigh in as R85-million dispute between SA Rugby and unions rages on

New Stormers CEO Johan le Roux has sided with the three other big professional unions/franchises in their ongoing dispute against SA Rugby, saying that the financial model needs to be revised.

MONEY TALKS

SA Rugby and three of the big four unions — the Bulls, Lions and Sharks — were recently bickering over guarantees and and television revenues relating to the Springboks’ home Tests this year.

With the Loftus and Kings Park hosting the two-Test series against Ireland, Ellis Park and Cape Town Stadium hosting the two All Black Tests, while the Cheetahs and Pumas will host the games against Argentina and Portugal respectively; SA Rugby is asking the unions for a combined R85-million in guarantees for the rights to host Test matches.

That means the Bulls and Sharks have to dock up R15-million each for hosting the Ireland Tests at their venues, the Stormers and Lions have to give a guaranteed R20-million each for hosting the All Blacks at their stadiums and the Pumas are expected pay R10 million to host Argentina in Mbombela and the Cheetahs must give R5-million to host the Springboks’ historic clash against Portugal.

Additionally, the franchises reliant on SA Rugby for the distribution of their slice from TV revenue, despite the fact that the they account for the bulk revenue generated on the local rugby scene.

STORMERS CALL FOR CHANGE IN SA RUGBY FINANCIAL MODEL

“The big unions are on the same page and we will continue to engage SARU,” Le Roux told @rugby365com earlier this week.

“I look forward to engaging with SA Rugby, along with the other international franchises [Lions, Bulls and Sharks], to debate a financial model that allows us to field competitive sides in Europe without the owners having to fund continuous losses.”

“It is about understanding the different roles and the different financial needs [between the big unions and the smaller ones],” the Stormers CEO added.

“The international franchises are all loss-making. The rugby environment is not sustainable until all participants can wash their face.

““We are loss-making and if you can’t put out a team that competes, the fan numbers start dwindling and sponsors become less attracted to the brand.

“It is very difficult. We want to put out a competitive side, but the shareholders can’t be expected to fund losses continuously. The model has to be relooked,” the Stormers chief operating officer concluded.

Stormers loose forward Hacjivah Dayimani with the URC trophy. Image: Stormers.