‘Reject this insulting offer’
That’s McKeever’s advice to WPRFU
FORMER Southern Spears chief executive Tony McKeever reckons the Western Province Rugby Football Union should reject Marco Masotti of MVM Holdings’ “insulting offer” so they can “move on and find bona fide investors and sponsors”.
Since WP Rugby started their ongoing talks with New York-based Masotti – who offered roughly R100million for a controlling stake in the Stormers, there have been no shortage of subplots to the main story around WP’s financial state.
Recently, independent director Raymond van Niekerk resigned following the non-renewal of fellow independent board members Andre van der Veen and Johan van der Merwe’s tenures.
Back in June, Kevin Kiewietz also walked away from the union in protest over their handling of negotiations with Investec.
Van der Merwe has since been replaced as chairman of the board by Ebrahim Rasool.
There was heavy pushing from the one camp prior to their departures for WPRFU president Zelt Marais to accept Masotti’s offer.
It’s a deal, McKeever reckons, that should be rejected.
“He (Masotti) is offering R100million ($6M) for 51% in a company that has an asset registry of at least R400-million. That offer is but 25% of the WP Rugby property portfolio. It’s a naive offer, and why the WP board are even entertaining it ... well, we do know why, because the three Vans (Van der Veen, Van der Merwe,Van Niekerk) all seem to be running a trifecta here and are coupled at the tote,” the former Spears CEO said.
“These guys have all breached the confidentiality clause of the NDA of these discussions, and that is grounds for immediate termination of any further discussions or negotiations. Furthermore, for Masotti and Van der Veen to ambush Zelt Marais and the board delegates on a virtual meeting, by inviting selected rugby players to a virtual meeting without the courtesy of a pre-clearance … who does that?
“It’s a complete ambush and hijacking of the virtual meeting and it’s unethical.”
It’s understood that Van der Veen was set for significant gain, with Masotti stating that the former independent board member would run WP Rugby if the deal was closed.
This clearly indicates the vested interest to be gained from the MVM proposal. McKeever concurred.
“They clearly went into this with the offer of a financial inducement by Masotti. Why push so hard for a low-grade financial transaction that is but a loan agreement and without any business plan?
“There’s no evidence or submission of a business plan, it’s just a capital offer – $2-million to Western Province and $4-million to the Stormers. That’s not a business plan, that won’t take you into the future and, quite frankly, it’s an insulting offer.
“The real problem is the negativity surrounding this offer which has blockaded any further offers or interested parties coming forward, so the sooner Western Province Rugby can dispense of MVM Holdings, the better.
“The future is wide open for WP Rugby. They can then move on and find bona fide investment partners and sponsors.”
McKeever went on to say that the union’s financial struggles can be resolved without entertaining MVM, while praising Marais for how he’s managed their financial situation.
“I don’t think WPRFU are in as much trouble as people make out and in fact they have incredible opportunities open to them in the transition from Newlands to the R2.5-billion Cape Town Stadium,” he added.
“What Zelt has done very effectively is consolidate their debt so they can negotiate properly, and why this crowd of the three Vans and MVM should run interference of this nature is no good to the franchise or WP Rugby ... it’s disruptive.
“Having said that, out of disruption can come innovation.”