The South African Rugby Union have released a statement saying that the Southern
Kings participation in Super Rugby this year will not be affected by an application
to liquidate EP Rugby (Pty) Ltd.
SARU stepped in late last year to take control of the cash strapped Rugby Union
and the players have since launched legal action against the Union for outstanding
salaries.
It is believed that while a figure of ZAR18 Million is owed to the players
they have agreed a settlement of ZAR12 Million with the first payment due later
this week.
Since last year it appears that all of EPRugby’s assets have been stripped
from the company leaving a mountain of debt which makes it unlikely that the
players will be paid what they want.
Due to the situation action has been brought against the Union by the South
African Rugby Players’ Association (SARPA) on behalf of a number of players.
The application was triggered by what SARPA described as the recent “preferential
treatment of creditors ” by EP Rugby (Pty) Ltd.
The players are understood to be concerned that if any funds come into the
Union they will get snapped up by “”preferential creditors” instead
of them.
“This action has no implications for the preparations or participation
of the Southern Kings in Super Rugby, ” said Jurie Roux, CEO of
SA Rugby.
“That entity is wholly owned by the South African Rugby Union and the
players, coaches and management team will continue with their work as has been
planned. They kick off against the Cell C Sharks at the Nelson Mandela Bay Stadium
on 27 February and that, and the rest of their fixtures, are unaffected. “
Roux said that the court action could have implications for domestic rugby
in the Eastern Province however.
“There will be questions about what this means for the EP Kings in the
Currie Cup and for the administration of amateur rugby in the Eastern Province, ”
said Roux. “We have also been asked if SA Rugby will be ‘taking
over’.
“Constitutionally, SA Rugby can only become involved in the administration
of a union if it is invited in, or if a union fails to put in place recommended
corrective measures.
“But, in the first instance, the Eastern Province Rugby Union, as the
sole shareholder in EP Rugby (Pty) Ltd, will have to address the court action
before anything else can happen. “
