The Valke Rugby Company on Monday announced that the union will be liquidated as a result of severe financial distress suffered from the Covid-19 pandemic.
The Valke were due to compete in a Global Rapid Rugby competition as a partner of Malaysia Rugby, but due to the Covid-19 impact that will no longer be the case.
In a statement, the Valke said they are in effect unable to pay the salaries of their players and employers.
‘It is with regret and great sadness that we have to announce that the professional arm of the Valke, the Valke Rugby (Pty) Ltd, is in financial distress and the directors of the company resolved that the company be wound up as it is unable to pay creditors and employees.
‘This decision was not taken lightly and the board of directors exhausted all avenues at their disposal to save the company from bankruptcy before concluding that the company be wound up.
‘The novel coronavirus has claimed another victim, after the Global Rapid Rugby competition played in Malaysia was cancelled due to the ban on travelling and the revenue stream from the license agreement was stopped.’
The Valke played in the competition and the owners of Global Rapid Rugby injected money into the company to pay salaries of players.
Last week trade union Sports Employees Unite chief executive Piet Heymans signalled his concerns about the state of financial affairs at the Valke, while the union confirmed to MyPlayers that they are indeed unable to pay the players their July income.
‘Salaries of employees have not been paid at the end of July and we, as part of the Valke family, deeply regret the hardships this decision has caused to all involved. It has, however, become unavoidable. Our hearts go out to all players, employees and families of those affected during this time,’ continued the Valke statement.
‘The Valke company relayed the decision to liquidate the company to all organisations representing the employees and players of the Valke company. We as the Valke union will do our utmost to support and assist every member of the Valke family and will co-operate with all organisations involved on behalf of their members.
‘The Valke Rugby Union [which runs amateur rugby] is not experiencing financial problems and all financial commitments to employees of the Valke union and its creditors are being honoured.’