Has being under administration helped the Western Province Rugby Football Union (WPRFU) improve their dire financial situation?
In early February, Netwerk24 reported that the union’s debt to Dream World Investments 401 now exceeds R250 million, this while the WPRFU has now been under administration for longer than the previous executive committee had been in power. So, how is the current administration with Peter Jooste at the helm benefitting the troubled union?
Questionable appointment
One can of course look at the forced exit of Zelt Marais as a major positive given the mismanagement and destruction the former president was associated with under his reign, and for good reason.
But what followed that?
Jooste is the third administrator since the WPRFU was placed under administration by the South African Rugby Union (SARU) in October 2021. Rian Oberholzer, the CEO of SARU, was the first WPRFU administrator, which saw SARU assume responsibility of various Western Province property transactions and the relocation to Cape Town Stadium.
Max Fuzani replaced Oberholzer on a short-lived interim contract. After becoming CEO of SARU, Oberholzer – in an attempt to remedy the severe financial difficulties within the organisation - placed Jooste in the administrator’s seat at WP, despite the former Springbok selector having been a part of the WPRFU exco that was put under administration.
Last year, the Annual General Meeting (AGM), which would have seen the union being removed from administration and the election of a new WPRFU executive on November 25, 2024, was postponed at the 11th hour. Jooste afterwards stated that his failure to meet certain conditions set by SARU for the removal of the WPRFU from under administration was the reason for the postponement.
Where did Jooste fail?
During his time as administrator, Jooste had to finalise the equity deal with Red Disa Consortium, progress the union to a financially stable state, ensure good relations with the equity partner, and ensure sound administration in the union's day-to-day operations. It is reported that the removal of the WPRFU from being under administration is predicated on sale of the unused Newlands Stadium. However, it is understood that there aren’t any transactions in prospect for the stadium.
With the WPRFU’s debt having skyrocketed from its initial loan from Dream World – despite SA Rugby and administrators selling a majority stake in WP in order to settle debt, which has still not been done – what successful measures have the current administration achieved?
A few years ago, it didn’t seem as though things could get any worse for Western Province. Now, however, one needs to ask whether the union is in a better position than they were prior to administration.
Too many unanswered questions
To gain clarity on the matter, TelecomAsia Sport reached out to SA Rugby with the following questions:
- According to reports, the WPRFU’s debt has increased to R250-million, is that correct?
- With a majority stake in the company having been sold to settle WP’s debt, has any of the money from the Red Disa Consortium actually gone towards clearing the union’s debt?
- In a financial sense, what have been some of the positives of placing WP under administration?
When an SA Rugby spokesperson responded that the questions needed to be answered by the WPRFU and Red Disa, we followed up with the following:
- Given your suggestion to rather speak with the union and Red Disa, could the following please be clarified?
- With Western Province Rugby being under administration, does SA Rugby not have financial say over WPRFU matters, despite them being under administration? If this is the case, could you please advise who takes responsibility for the union’s finances – if not SA Rugby – while they are under administration?
- WP were put under administration because they couldn’t provide audited financial statements, is the union still in charge of their own finances, and does that mean that they aren’t under administration anymore if the financial area is a union matter?
- To our understanding, only Rian (Oberholzer) deals with WP Rugby matters, both when he was administrator of the union and also after he moved over to SA Rugby. Is this incorrect?
Following our latest request for comment, the spokesperson said that SA Rugby couldn’t provide comment regarding the matter at this time.
