Kings in high stakes buyout talks
The fate of an ambitious R45m bid by a group of businessmen to take control of the ailing Isuzu Southern Kings could be decided at a high stakes meeting on Sunday.
Consortium spokesperson Loyiso Dotwana is expected to address EP Rugby clubs and other stakeholders about the attempt to secure a 74% stake in the franchise.
In August, plans for the buyout bid and the new sponsors Isuzu were announced at a launch at the Nelson Mandela Bay Stadium.
The Herald has seen a document regarding the transaction summary for the acquisition of a majority stake in SA Super Rugby (who control the Kings) by the Greatest Rugby Company in the Whole Wide World.
One of the suspensive conditions is a three-year R10m per year sponsorship deal with Isuzu.
Another condition is that SA Rugby warrants that the Kings have, and will continue to have, the right to participate in the Guinness Pro14 until the 202223 season.
Such is the sensitivity of the talks that insiders say the consortium could walk away from negotiations if there are breaches of confidentiality.
The other members of the consortium are businessmen Gary Markson, Rory Stear and Kenny Govender and businesswoman Vuyo Zitumane.
“These are very sensitive talks and there are confidentiality clauses involved,” EP Rugby Union president Andre Rademan said.
Rademan, apart from heading the EPRU, is also chair of the Southern Kings board.
“We had a meeting on Monday from 10am until 4pm and everything is on track for another meeting on Sunday. I cannot say much more than that everyone concerned with the bid will be there on Sunday.
“I called a board meeting on Monday and then we had a meeting with the equity partners. The third meeting on Monday was between the board, the equity partners the EPRU board and sub-union chairman.
“The whole equity deal was discussed and it was a frank discussion and very open. A resolution was taken that we do need an equity partner and that we will meet again on Sunday.
“At the next meeting we want all the stakeholders to be on the same page regarding the deal. This is so that everyone buys into the deal so there can be a positive impact going forward for the franchise and the EPRU.”
If the consortium succeed in their bid, there are plans to create an academy so that the Eastern Cape can retain and grow rugby talent.
Dotwana said at the launch of the Isuzu sponsorship in August that a new dawn beckoned for rugby in the Eastern Cape province.
“We want to build a professional and competitive team for the long run,” he said.
“By creating an academy and team here, we want to retain the Eastern Cape’s talent.
“This is the home of black rugby. Our team will promote social cohesion in South African rugby.”
Kings coach Deon Davids will be hoping that a deal can be struck as soon as possible so that cash is made available to buy new players and assistant coaches.
The Kings are currently on a break and will resume their season with a Pro14 away match against Edinburgh on January 5.
SA Rugby declined to elaborate on the buyout bid.