US rugby boss resumes talks on Kings takeover
AMERICAN rugby chief and New York financier Douglas Schoninger had top-level meetings in Cape Town this week with the liquidators of the EP Rugby Union (EPRU) and members of the SA Rugby Union’s executive committee about buying a 74% stake in the troubled union.
Schoninger, who is also the boss of Pro Rugby North America, arrived in South Africa on Sunday and had meetings with the liquidators on Monday and yesterday.
He also had an informal meeting at the invitation of Saru president Mark Alexander at a braai on Sunday.
Schoninger met Alexander in London last year, when talk of his interest in buying a stake in EP Rugby surfaced.
Although Saru and the architect of the deal, Tony McKeever, threw a veil of secrecy over the meetings with the liquidator, it is believed that a deal has yet to be finalised and signed.
One of the liquidators, Danie Acker, confirmed that negotiations were under way with interested parties.
“I am currently not at liberty to give detailed information,” he said. “Yes, we are talking to interested parties. “We are positive that a deal is possible, but I cannot disclose names or more than that.
“Hopefully, we will be able to give more information by next week.”
Insiders said the terms and conditions of the acquisition of 74% of EP Rugby Pty Ltd and its commercial rights had been discussed by Schoninger and the liquidator.
Asked about Schoninger’s visit, Saru spokesman Andy Colquhoun said the union did not give a running commentary on its operations.
McKeever said yesterday he could not comment further because of a news blackout agreed on by Schoninger and Saru.
Sources said a sticking point to any deal, which would need Sanzaar approval, was that Schoninger wanted the Kings entrenched in Super Rugby until 2020.
EPRU is under administration by Saru, which appointed Monde Tabata as administrator.
The meetings come just four weeks before the Southern Kings play their opening Super Rugby match against the Jaguares in Port Elizabeth on February 25.
Before Schoninger’s arrival in South Africa, McKeever said: “Prior to his departure from New York, Douglas confirmed that a draft heads of agreement would be drawn up by EP Rugby Pty Ltd liquidators Danie Acker and John Walker on Friday for the approval and sign-off of the 74% shareholding of EP Rugby Pty Ltd, which was to be reaffirmed at the SA Rugby exco meeting.
“Key in all of this is that EP Rugby Pty Ltd is not only in Super Rugby for one time in 2017, but that they and the other five South African franchises are all in the Super 18 Super Rugby tournament through to 2020.
“For SA Rugby and all of South African rugby to have even just one Super Rugby franchise culled from the tournament from 2018-2020 ... would be financially catastrophic for the franchise and SA Rugby. “The mere notion of culling any of the six SA franchises is pure folly to even contemplate, as the financial toll it has taken on all of South African rugby over the past decade amounts to over R250-million.”
McKeever said this had wreaked havoc on the franchises, especially Eastern Province, as they had been unable to contract sponsors or players on multi-year contracts.
“South Africa is the senior partner and shareholder of Sanzaar, which currently has 18 franchises, with South Africa six, New Zealand and Australia five each, and Japan and Argentina one each,” he said.
“Inconsistent with these numbers, and particularly the equal share of the distribution of the broadcast rights fees, is that South Africa has over one million registered players, with New Zealand having 140 000 and Australia 80 000, showing that South Africa has more than twice the number of the combined players of New Zealand and Australia and that Saru can ill-afford to shed a Super Rugby franchise.
“Sanzaar should, in essence, be accommodating SA Rugby not only with their six franchises through to 2020, but [with] a greater share of the broadcast rights fees.
“This is about the salvation of all South African Rugby franchises.
“A deal like this will bring stability.”