22.6.2020 08:12 pm
SA Rugby takes control of struggling Southern Kings
A team appointed by SA Rugby will work with franchise administrators to ensure the Southern Kings stay afloat.
SA Rugby has taken management control over the troubled Southern Kings by taking back a 74% shareholding in the franchise.
All staff and players had been retained, the national federation confirmed on Monday, and the Kings would continue to compete in the Pro 14 when the competition resumed.
“I cannot stress enough how reluctant we are to resume control of the 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.”
A finance team appointed by SA Rugby would work with franchise administrators to ensure salary payments were made and business needs addressed.
Alexander said the decision to take interim control of the franchise was taken following 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.
“We appreciated the vision and intentions of the GRC but unfortunately we are operating in an unforgiving business environment,” Alexander said.