[ad_1]
Elrigh Louw in action for the Southern Kings during PRO14.
Johan Pretorius / Gallo images
- Following the liquidation of the Southern Kings franchise, MyPlayers has raised concerns about rugby business developments in South Africa.
- The organization represents the country’s professional rugby players.
- The Southern Kings were liquidated with the following debts of more than R55 million.
the MyPlayers organization, which represents professional rugby players in South Africa, has expressed concern following the decision to SA Rugby to place the Kings of the South under voluntary liquidation.
The news was announced on Saturday to secure the long-term financial future of rugby in the eastern province and was taken “against a cumulative deficit of 55 million rand, and with a zero revenue outlook for the remainder of 2020”, A statement issued by SA Rugby reads.
Expressing concern about the decision in a statement released to the media on Sunday, MyPlayers says it is concerning the way the commercial entities of the fan guilds are liquidated and the regularity in which it is happening.
MyPlayers cited Valke who in July requested the provisional liquidation of its business entity, as well as the fact that the business entities of WP Rugby and Border have shared the same fate as other examples.
“On all occasions, the Players Organization has been in the trenches of this seemingly normal occurrence in our domestic game, and we have seen and experienced the human impact this has on players who lost their livelihoods as a direct result of the mismanagement of the professional game “ Eugene Henning, CEO of MyPlayers said in the statement.
The statement continued:
In most industries, liquidation of such a business entity is the last resort taken when you can no longer meet your commitments to your creditors. At the time of liquidation, a company is permanently closed and loses all intellectual property rights, assets and other means that allowed it to operate a business.
The approach to liquidation of South African rugby is different, and this has led to a lack of responsibility and consequences for amateur unions, who often voluntarily liquidate their entities when they can no longer meet their obligations to their creditors, including professional players. hired.
After liquidation, a new company is created with no guarantees as the hobbyist unions will do a better job of managing this new business than the one they just started.
“It is simply not enough for a Union to transfer all financial blame to the business entity that was created and co-managed by the Union. It’s easy to pass the buck when you don’t suffer consequences from the failures of your business entity. “ Henning added
“Come Monday, it will be normal life for the Union. He will continue to enjoy his voting rights on the General Council of the SARU and will be allowed to make important strategic business decisions about the direction of the professional game despite the failure of his own business entity. They will still receive their normal financial distributions from the professional game from SARU and will be allowed to participate on the field in the professional game, although their own business entity was liquidated.
“As unthinkable as it may be, they will be allowed to immediately set up a new business entity like the one they had just voluntarily liquidated. So there is a clear incentive for unions to liquidate business entities and move away from financial obligations to get a second clean bite while creditors and employees are left in the dust to pick up the pieces.
“Unless unions are held accountable for the failures of their business entities, there is no reason for this ‘clear and repeat’ culture to be eliminated from professional rugby in South Africa.
“The Covid-19 pandemic has put all industries under considerable financial strain and, as a means of reducing those pressures on their employer, Kings players have sacrificed a substantial portion of their wages since May. In today’s market, players are unlikely to find employment elsewhere, which makes the timing of this decision, six days before wages due, downright cold. “ Henning concluded.
In its statement, MyPlayers went on to make a proposal for similar future developments.
MyPlayers proposes the following:
Following the liquidation of a business entity, the Union may not participate in professional rugby until it has demonstrated its ability to properly manage a business entity.
During this time:
-
Unions will receive substantially smaller distributions from SARU.
-
They will lose their voting rights in the General Council of SARU in any matter related to professional rugby.
-
They will have to undergo a professional rehabilitation process and will only be allowed to operate a business and participate in professional rugby competitions again once they have demonstrated that they are capable of running a successful and sustainable business entity.
The Players Organization represents a group of rugby stakeholders who are young, have young families and are committed to a career that rarely lasts more than 10 years before entering the next phase of their lives. For reasons that have nothing to do with them, they are often the biggest victims, at least they can afford it, in an industry that fails too often without any real measure of liability. The consequences for them persist long after the wrongdoers have been allowed to continue their activities normally.
In no real professional environment is it normal or ethically defensible to maintain a culture of poor governance and financial management to the extent that it has become standard and without penalties as is the case with South African rugby. This sports code has been professional for 25 years, but its lack of codes of business conduct continues to hamper true professionalism.
Henning has asked the industry to engage in conversations about the level of governance, financial discipline and accountability that prevail in professional rugby.
“The status quo is bad for the game”, the statement concluded.
– Compiled by Sport24 staff
