The struggling Southern Kings rugby franchise was on Saturday placed into liquidation by SA Super Rugby (Pty) Ltd to preserve the future of rugby in the area.
Southern Kings insolvent
Before SA Rugby took over the franchise the original franchise owner, the Greatest Rugby Company in the Whole Wide World (GRC), were unable to service the debt of the franchise as required in the original purchase transaction. Shortly after that, the Southern Kings title sponsor withdrew their financial support of the franchise due to claims of mismanagement at minority shareholders, the Eastern Province Rugby Union (EPRFU).
The EPRFU comment
“The hard fact is that the Kings are insolvent, with significant debts and zero assets and it would have been reckless of the board to continue to trade,”
said Mr Andre Rademan, chairman of the board.
SA Rugby’s rationale
“The history of the Kings has been one of expectation and anticipation but unfortunately the parallel story of commercial failure couldn’t be wished away any longer. The debts the organization has accumulated over the years are considerable and in the current environment the only certainty was that they would grow.”
was the comment from Mr Mark Alexander, President of SA Rugby.
The impact on Eastern Cape rugby
It is groundhog day all over again for the rugby-loving public of the Eastern Cape. They have seen this movie many times before and the ending has never been good. There is rugby talent in their greater catchment area, but political infighting and allegations of financial mismanagement are always a turnoff for any company considering making a financial investment in rugby in the area.
Quotations courtesy of SA Rugby.
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