Business Day

Lions tour profits can offset losses for local unions

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The rugby world is reeling from the effects of the coronaviru­s pandemic but SA might have an advantage over other rugby countries because of the windfall expected when the British and Irish Lions tour in 2021.

Just as the country as a whole might reap the benefit of the quick action of the government in the fight against the virus, so our rugby might be advantaged by the potential for some of the profits expected from the Lions series to be banked forward to help out franchises that could otherwise face bankruptcy.

The effects of the suspension of play overseas have been well documented.

Club coaches and players are having to accept pay cuts, some national coaches are having to accept they will no longer be getting what they signed up for.

It isn’t a secret that some local unions are being kept afloat with the help of some wealthy backers.

Those backers would have felt the economic pinch of the reaction to the pandemic, and as a result they have less money to feed to their unions.

It isn’t a surprise the Golden Lions have been the first to react, with The Lions Rugby Company reportedly forcing employees to take 11 days annual leave during the threeweek lockdown ordered by the national government.

While staff were told the March payroll will continue as normal, it was decided that permanent employees will be required to take annual leave for the 11 working days they will be off for the lockdown period.

Of course, it may not end there. Staff were also warned that depending on the length of the suspension of rugby and the “possible impact on revenue streams”, further cost-cutting may be necessary.

It is only a matter of time before similar messages filter through to other unions.

It is understood the government is eager for Super Rugby and the PSL to start as soon as possible to lift the nation’s mood.

Cross-border rugby is impossible, given the shutdown of internatio­nal travel, with the incoming series against Scotland already believed to have been consigned to the scrapheap.

But a local competitio­n featuring teams playing derbies in a closed off and sanitised environmen­t is possible.

It won’t happen soon enough though to limit the severe effect of the suspension of rugby on the finances of the unions. Even if the current lockdown ends on the scheduled date of April 16 and rugby is given the OK to resume, it will be at least another three weeks before a competitio­n can start.

That is the agreement between the franchises, who will need at least that length of time to condition their players to taking contact again after going into isolation and training individual­ly for several weeks.

So even if rugby does resume at the earliest possible date in May there would have been an eight-week break dating back to the suspension of Super Rugby.

That’s eight weeks of players, coaches and other management members drawing salaries with no income for the unions. With some franchises already on the edge financiall­y even before coronaviru­s arrived, that eightweek shortfall in finances could be a potential breaking point.

That is where the timing of the Lions tour could prove a godsend. Even though still a year away, it would be naive to think the Lions series won’t to some extent be negatively affected economical­ly by what is happening now.

For a start, if reschedule­d major events take place on the dates they are now scheduled to, the Lions tour is now taking place in the same year as an Olympics and a European Championsh­ip, with Euro 2020 now becoming Euro 2021.

Those potential rival attraction­s are added to the other uncertaint­ies about the world, such as the economic effects of the coronaviru­s lockdowns on economies and the affordabil­ity of internatio­nal travel.

But there should still be enough interest and enough people with economic means ready to travel for what has been an eagerly awaited tour for the SA rugby administra­tion to expect a guaranteed windfall in 2021.

That money can be used to avert the weak point the sport in this country will reach if the unions struggle to pay and retain players and coaches.

In the UK, the national rugby administra­tions have recognised the need to put the survival of clubs and regions first on their list of priorities, and Saru must do the same.

It won’t be a fortune as we are just talking about the money that has been lost out on during the period of inactivity.

But it will be enough to make a big difference to cashstrapp­ed unions. For some it might even be the saviour.

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