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SA Rugby President Mark Alexander said it was time to “reconsider” a “suitable and viable” rugby project for the Eastern Cape province.
JOHANNESBURG – The South Kings have been put into liquidation due to a 55 million rand debt, South African Rugby announced on Saturday.
Like the Central Cheetahs, the Kings were unable to resume the current season due to health and logistical limitations imposed by the coronavirus pandemic.
“The shareholders, the Eastern Province Rugby Union (EPRU) and SA Rugby, made this decision in the face of a cumulative deficit of R55 million and no revenue in sight for the remainder of 2020,” SA Rugby said in a press release. .
“The harsh reality is that the Kings are insolvent, with significant debt and zero assets, and it would have been unwise to continue the business,” said Kings Chairman Andre Rademan.
“Continuing would have required loans from the EPRU in addition to the R45 million the company already owes SA Rugby,” Rademan added.
SA Rugby President Mark Alexander said it was time to “reconsider” a “suitable and viable” rugby project for the Eastern Cape province.
Siya Kolisi, captain of the 2019 Rugby World Cup winning Springboks team, hails from the Eastern Cape region, as are background stars Lukhanyo Am and Makazole Mapimpi.
By the end of June, SA Rugby had taken over the struggling Kings for the second time in five years.
The action of the national rugby body saved the franchise from bankruptcy by inheriting 74% of the shares after a default payment from its majority shareholder.
Stopped in March due to the pandemic, Pro 14 was resumed in August more strictly, reduced to transnational meetings to limit border movements.
The Kings and Cheetahs were unable to continue their campaigns as they were only allowed to resume non-contact training in late July.
Isolated by the pandemic, SA Rugby announced on Friday the creation of a national version of Super Rugby, following in the footsteps of New Zealand and Australia.
Seven franchises will compete again in October, after more than six months without playing.
The national version of Super Rugby will be followed by the Currie Cup, the oldest provincial national rugby competition in the world.
Super Rugby teams, the Bulls, Lions, Sharks and Stormers, will be joined in both competitions by the Cheetahs, Griquas and Pumas.
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