WP RUGBY TACKLED IN HIGH COURT
Zelt Marais in bid to invalidate equity deal
A FRESH application to oppose and overturn SA Rugby’s decision to place the Western Province Rugby Football Union (WPRFU) into administration and the recent sale of the professional arm to Red Disa Investments has been launched in the Western Cape High Court.
The African Restoration Party (ARA), a political party, on Friday, filed a 102-page document asking the court to look into matters about the placing of the WPRFU under administration, the suspension of Zelt Marais as president, the sale of Newlands to pay off debt, and the sale of a controlling stake of the professional arm of the union, among others.
The applicants are arguing that all of the points have been done unlawfully and seek to reverse it, and for Marais and company to be reinstated after SA Rugby suspended them.
After initially being open to the administration as president, Marais has for the last couple of years fought to regain control of the union, after he along with his executive was suspended when the administration kicked in.
It’s a fresh twist in the ongoing saga of WP Rugby, which has been under administration from rugby’s national governing body since 2021.
The administration came into effect after the professional arm of WP Rugby was on the brink of bankruptcy following several failed attempts at getting in an equity partner for a much-needed financial injection.
Red Disa Investments last year stepped in to acquire a controlling stake in the professional arm to stabilise the finances of the Stormers and WP teams. It’s a deal ratified by SA Rugby’s executive and approved by South Africa’s Competition Commission.
The Red Disa Consortium announced Johan le Roux as the new CEO and WP Professional Rugby (WPPR) as the company is known, will undergo a name change to Stormers Rugby. But now, there’s resistance anew from ARA under its leader Jerome Swartz and the other co-applicant William Fischer. They aim to have the administration overturned by declaring Section 29.5 of SA Rugby’s constitution, which allowed for the administration of WPRFU to be implemented in 2021, unconstitutional in an effort to have Marais reinstated in his position, his executive to return, and for a meeting to be established where a new executive for WPRFU can be elected.
The union has had three administrators, Rian Oberholzer, now the acting CEO of SA Rugby, and Max Fuzani, who was appointed but didn’t last long in the position.
Veteran administrator and former WPRFU executive member Peter Jooste was recently appointed to oversee the final parts of a process to get the WPRFU back on sound financial footing.
This includes the proposed sale and redevelopment of the Newlands Rugby Stadium and precinct.
A SA Rugby spokesperson confirmed to Independent Newspapers the governing body will oppose the application.
The application also states Marais received a “hospital pass” in rugby terms when he took over the leadership from Thelo Wakefield in 2016.
Wakefield was the president when the financial troubled started.
Since then there have been plenty of companies involved in trying to acquire an equity stake in the professional entity, but with no success. At one stage, things became so dire that SA Rugby threatened to take away the franchise from WP.
There are also claims of a players’ rebellion in the application when Marais was elected as president with prominent Boks apparently at the helm of it.
The application furthermore wants SA Rugby to disclose its fully audited annual financial reports and statements, together with its annual budgets, and that of its subsidiary and/or associate companies for the years 2010 until the present date for consideration and scrutiny by the applicants as well as its union members and club.
Apart from SA Rugby, the WPRFU, and Marais, the application listed Mark Alexander, SA Rugby president, former CEO Jurie Roux, Oberholzer, Speaker of Parliament, Jooste, Minister of Sport, and Red Disa as respondents.