SA Rugby has made significant gains after reportedly reducing their budget deficit for the financial year by R149 million.
According to Sunday newspaper Rapport, SA Rugby has reduced their losses from a massive R258 million in January to R109 million.
“This is an unusual year in the financial cycle and the legacy of the consequences of the Covid-19 pandemic is still felt in many businesses in South Africa, as well as in many rugby associations around the world,” acting chief executive Rian Oberholzer told Rapport.
“We have committed to restore the full annual distribution to our members [the provincial unions] in December and that commitment is being honoured.”
SA Rugby is also hopeful of securing a new private equity partner, reported to be CVC Capital, to bring in new streams of income from overseas.
“CVC has interests in the Six Nations, European Professional Club Rugby, Premiership Rugby and the United Rugby Championship. All the structures together create value,” SA Rugby president Mark Alexander told Rapport.
SA Rugby is confident of wiping out their losses for this year, even though it could cost up to R80 million in match fees and bonuses if the Springboks win the World Cup.
“We will get there. We held a strategic session and worked out a plan,” Alexander said.
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