SA Rugby president Mark Alexander says it was a ‘last resort’ to once again assume management control of the Southern Kings.
On Monday, it was confirmed SA Rugby had taken back a 74% shareholding in the organisation, with Alexander stating the decision 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.
Before the takeover by the Kings’ new business consortium last year, SA Rugby had needed to step in back in 2016 to assume administrative control after ongoing issues and financial struggles.
‘I cannot stress enough how reluctant we are to resume control of the Southern Kings,’ Alexander commented. ‘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 has 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.
‘This was a decision we took with extreme reluctance and after allowing GRC considerable lee-way in which to meet the contractual commitments they made on the acquisition of the shareholding,’ Alexander added.
‘We appreciated the vision and intentions of the GRC but unfortunately we are operating in an unforgiving business environment.’
A decision on whether an administrator needs to be additionally appointed will be taken in the coming days.