Kings buyout deal gets EP clubs OK
Eastern Province rugby clubs have unanimously endorsed a deal which will see a business consortium own a 74% stake in the Isuzu Southern Kings.
The R45m buyout bid was concluded on December 12, but was only ratified by clubs when the EPRU held its annual meeting on Saturday.
In a new move the Kings Pro14 team will be run by a board consisting of four consortium, two EPRU members and three independent directors.
“It is all go now and the deal has been done,” EP Rugby president Andre Rademan said.
“We could not survive without an equity partner and a sponsor. This was a gamechanger for EP rugby and it has made the future look a lot brighter.
“We must now dissolve the old board by the end of March and constitute a new board who will make decisions. We will be like any other union in the country.
“The new board will have full control and there will be an agenda on the way forward.”
It is expected that the cash injection will breathe new life into a region that has battled to keep its head above water in the Guinness Pro14, Currie Cup, SuperSport Rugby Challenge and junior levels.
There were a series of all-day meetings at EP Rugby headquarters in December where Rademan and consortium chair Loyiso Dotwana addressed stakeholders about the bid.
The other members of the consortium are businessmen Gary Markson, Rory Stear and Kenny Govender and businesswoman Vuyo Zitumane.
Stear attended the annual meeting, but did not address clubs.
“The consortium deal was already signed on December 12 after lengthy negotiations that took place over a few months,” said Rademan.
“Where the union was involved with the consortium, everything was very transparent involving all stakeholders. After the negotiations were concluded some changes made and everyone was on the same page when we signed the deal.
“We still had to take it to the annual meeting, which we did on Saturday and the decision was endorsed. It was unanimous and there was not a single vote against it.
“Now we are heading for a new dawn for EP rugby. Since our new executive took over 22 months ago we are slowly getting matters right. We got our bank balance right and we got out of liquidation and administration.”