SA RUGBY HAS resumed control of the Southern Kings by taking back a 74% shareholding in the organisation.
The decision has been taken due to the failure of the Greatest Rugby Company in the Whole Wide World (GRC) to meet its financial commitments relating to the acquisition of the shareholding in the South African franchise.
According to a statement issued today by SA Rugby, the move will ensure that the Southern Kings “will participate in Guinness Pro14 and/or any other competitions that may be established within the constraints of the Covid-19 pandemic lockdown.”
A decision on whether the appointment of an administrator will be required for the Port Elizabeth-based outfit is to be taken in the coming days.
Advertisement
“I cannot stress enough how reluctant we are to resume control of the Isuzu Southern Kings,” said SA Rugby president Mark Alexander.
“It is our last resort and we are keen to explore ways to return the shareholding to another’s hands, in conjunction with the EPRU, the minority shareholder, who have given the required approval to the decision.
“The next step is to appoint a new board to oversee the franchise’s affairs and ensure the team is match ready for when we are able to resume playing.”
Rassie Erasmus, South Africa’s director of rugby, is liaising with Kings director of rugby and interim coach, Robbie Kempson, on immediate team needs. All staff and players of the franchise have been retained.
SA Rugby has appointed a finance team to work with franchise administrators on ensuring salary payments are made and business needs are addressed.
“This was a decision we took with extreme reluctance and after allowing GRC considerable leeway in which to meet the contractual commitments they made on the acquisition of the shareholding,” Alexander added. “We appreciated the vision and intentions of GRC but unfortunately we are operating in an unforgiving business environment.”
With one win from 13 games, the Southern Kings languished at the bottom of Conference B in the Guinness Pro14 when Covid-19 brought the season to a halt in March. A target date of 22 August has been set for the campaign to restart.
Irish lock Jerry Sexton – younger brother of Ireland captain Johnny – joined the Southern Kings on a three-year contract from Jersey Reds ahead of the 2019-20 season
The42 is on Instagram! Tap the button below on your phone to follow us!
To embed this post, copy the code below on your site
Close
12 Comments
This is YOUR comments community. Stay civil, stay constructive, stay on topic.
Please familiarise yourself with our comments policy
here
before taking part.
SA Rugby take control of Southern Kings to keep cash-strapped Pro14 side afloat
SA RUGBY HAS resumed control of the Southern Kings by taking back a 74% shareholding in the organisation.
The decision has been taken due to the failure of the Greatest Rugby Company in the Whole Wide World (GRC) to meet its financial commitments relating to the acquisition of the shareholding in the South African franchise.
According to a statement issued today by SA Rugby, the move will ensure that the Southern Kings “will participate in Guinness Pro14 and/or any other competitions that may be established within the constraints of the Covid-19 pandemic lockdown.”
A decision on whether the appointment of an administrator will be required for the Port Elizabeth-based outfit is to be taken in the coming days.
“I cannot stress enough how reluctant we are to resume control of the Isuzu Southern Kings,” said SA Rugby president Mark Alexander.
“It is our last resort and we are keen to explore ways to return the shareholding to another’s hands, in conjunction with the EPRU, the minority shareholder, who have given the required approval to the decision.
“The next step is to appoint a new board to oversee the franchise’s affairs and ensure the team is match ready for when we are able to resume playing.”
Rassie Erasmus, South Africa’s director of rugby, is liaising with Kings director of rugby and interim coach, Robbie Kempson, on immediate team needs. All staff and players of the franchise have been retained.
SA Rugby has appointed a finance team to work with franchise administrators on ensuring salary payments are made and business needs are addressed.
“This was a decision we took with extreme reluctance and after allowing GRC considerable leeway in which to meet the contractual commitments they made on the acquisition of the shareholding,” Alexander added. “We appreciated the vision and intentions of GRC but unfortunately we are operating in an unforgiving business environment.”
With one win from 13 games, the Southern Kings languished at the bottom of Conference B in the Guinness Pro14 when Covid-19 brought the season to a halt in March. A target date of 22 August has been set for the campaign to restart.
Irish lock Jerry Sexton – younger brother of Ireland captain Johnny – joined the Southern Kings on a three-year contract from Jersey Reds ahead of the 2019-20 season
The42 is on Instagram! Tap the button below on your phone to follow us!
To embed this post, copy the code below on your site
Guinness Pro14 Rugby sa rugby southern kings The Kings ransom