Stormers want more clarification and adjustments to SA Rugby’s current income structure.
With their new financial boost, Stormers should be able to produce more elite athletes like Manie Libbok, Warrick Gelant, and Ruhan Nel. | BackpagePix
published on April 13, 2024
Till there is clarity on the revenue sharing, particularly with regard to the four overseas franchises, STORMERS will keep interacting with SA Rugby regarding its financial strategy.
Stormers demand greater clarity and changes to the income arrangement used by SA Rugby………..
With a new board and chief executive, the Stormers are in a better position to discuss the matter at a table with rugby’s national governing body after they recently joined the three other major teams who are privately owned.
The financing structure for SA Rugby has always been divisive, particularly with regard to the provinces that play international rugby and how specifically the broadcast revenue is distributed to them.
cle Roux, the CEO of New Stormers Rugby, has now demanded greater assurance for the teams and that they must keep interacting with SA Rugby in the future by reconsidering the concept.
Through SA Rugby, a significant portion of the broadcast revenue is received in various ways. This week, Le Roux stated, “We don’t like uncertainty, especially because it’s not contractual and can change.
In other words, if you add up all the components—test match, insurance, players of national interest (Poni) payments and distribution—you can see how hard it is to engage in a business and continue paying losses (as investors).
That comes to over half of our total revenue when added all up. It is a sizable portion of our company. For a businessman, not being able to see clearly into the future about those numbers is a serious issue.
“We would like to suggest that the unions work together to debate the model with , but I am unable to discuss it at this time. The conversations are still going on.
As the leader of Fynbos Ekwiteit, Le Roux recently bought a majority share in the Stormers with the help of other important Red Disa Investments players in an effort to “rescue” rugby in the Western Province.
They intend to have Stormers Rugby dining at the top table of world club rugby, and they are now trying to pull the struggling team out of the red zone financially following a significant investment.
The four South African teams that compete in the United Rugby Championship (URC) and European Professional Club Rugby (EPCR) are the Lions, Bulls, Stormers, and Sharks.
The mother union isn’t, however, a complete participant in any of the competitions yet.
At the moment, the teams are competitive in the tournaments; however, they have been concentrating on one of these competitions because they find it difficult to fully commit to both due to their small player bases. The Bulls are currently in the similar situation as the Stormers were in regards to the Champions Cup and URC.
It occurred to them last season.
Le Roux believes that after SA Rugby closes its own equity agreement, things should change, but in the interim, there should be more communication.
“There are numerous components, making it a complex ecosystem. You cannot dispute arguments on an individual basis; the entire concept needs to be debated. There is much to be said for openness and knowing where the long- and medium-term financing is going.
“Having a clear view of such revenues is much desired by the clubs.
The mandate of SA Rugby is broad.
It is more difficult to be at the bottom and take what is left than it is to comprehend the amount of money that is received from broadcasting and our share of that.
Then, investing in our companies will be simpler.
Le Roux went on to say that, contrary to previous perceptions, the funding model is an effort to comprehend the various demands of the South African rugby scene rather than a conflict between the larger and smaller unions.
