EPRU could mount Kings takeover bid
Rademan is ‘keen to grab control of the franchise’
Ambitious EP Rugby bosses could be planning a bold bid to take back control of the Isuzu Southern Kings after it was placed under SA Rugby administration last week.
EP president Andre Rademan is said to be keen to grab control of the Guinness PRO14 franchise after SA Rugby took back its controlling 74% share.
SA Rugby president Mark Alexander said his union took the drastic step after the Kings’ previous owners, Greatest Rugby Company in the Whole Wide World (GRC), failed to meet its financial commitments. If Rademan wants to press ahead with a bid to gain control of the franchise, he will need to get his executive to back the plan.
“I have nothing to say at all about the situation at the Kings,” Rademan said when asked if his union would like to gain control of the PRO14 team.
Insiders said that if EP expressed an interest in taking control, SA Rugby’s executive committee would probably be very pleased.
“I cannot stress enough how reluctant we are to resume control of the Southern Kings. 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 (Eastern Province Rugby Union), the minority shareholder, who have given approval to the decision.”
A key component of any takeover plan would be the repayment of a R45m debt that is owed to SA Rugby.
The other 13 member unions will have an eye on this outstanding amount and would affect how they react to any EP bid for control.
“Some kind of structure or arrangement would have to be made around settling that,” an insider said.
Rademan is proud that his union is back on its feet after financial problems when he took over.
“When the EPRU came out of liquidation and administration we reopened this union in 2017 with R31 in the bank. The EPRU was a destroyed organisation. We worked relentlessly to rebuild and have had three years of clean forensic audits.
“Actually, within two years we were liquid, out of administration and had a positive bank balance. The franchise [the Kings] could not be sold without our permission because the EPRU are the members of Saru [as per the SA Rugby constitution which governs membership and competition structures].”
It has emerged that the GRC, led by chair Loyiso Dotwana, brought in no investment capital of its own but signed an agreement to inherit the R45m debt the Kings owed to SA Rugby.
Conditions of the deal were that the GRC services the debt by paying R5m annually, every September, until the debt is cleared. Insiders say the GRC defaulted on its very first repayment and did so again in February, after SA Rugby extended its deadline.
In the meantime, SA Rugby could be planning to bring in experienced rugby administrator Monde “Mr Fixit” Tabata to help sort out the crisis that has engulfed the Kings.
If this happens it will not be the first time that Tabata, an independent member of SA Rugby, has been parachuted into Port Elizabeth to help sort out a crisis.
Tabata, a retired former corporate executive is respected in rugby circles, has been credited for helping to get EP rugby back on its feet after problems the union experienced in 2016.
He is a graduate of Rhodes University and holds an honorary degree from Australia’s Monash University.
Tabata is also is a former MD of Megapro, served for 16 years on the board of directors of Peermont Global Group and was chair of the various trusts linked to the group.
The Kings, who failed to pay administrative salaries on time in April, have endured tough times in the boardroom and on the field. After being saved a R6m bailout by the metro, there were rising fears that the Kings may face similar cash flow problems in coming months.
After being saved a R6m bailout by the metro, there were rising fears that the Kings may face more cash flow problems