Kings players face salary cash crisis
Shockwaves after the PE-based club was voluntarily liquidated
Devastated Southern Kings players and staff are facing a cash crisis and are not expecting to receive their September salaries after the franchise was placed into voluntary liquidation, Kings coach Robbi Kempson said.
Shockwaves reverberated around the Eastern Cape on Saturday after the board of SA Super Rugby (Pty) Ltd — which trades as the Southern Kings — placed the insolvent Kings company into voluntary liquidation.
“It is actually very sick in the manner in which it has happened,” an angry Kempson said.
MyPlayers, an organisation that represents the interest of SA’s professional rugby players, described the move as “downright cold-blooded”.
“The Covid-19 pandemic has put all industries under considerable financial stress, and as a means of reducing those pressures on their employer, the Kings players have sacrificed a substantial share of their salaries since May,” MyPlayers CEO Eugene Henning said.
“In the current market, players are unlikely to find employment elsewhere, which makes the timing of this decision, six days before salaries were due, downright coldblooded.” The shareholders — the Eastern Province Rugby Union (EPRU) and SA Rugby — took the decision in the face of an accumulated deficit of R55m, and with zero income in prospect for the remainder of 2020.
“We understand there will be financial difficulties if you are taking over R45m debt,” Kempson said.
“There was always a question mark of how you were going to repay that.
“We were all of the opinion that we would be pulled out of PRO14 due to financial constraints, but to have liquidation dropped on us five days before payday is a little awkward.”
Asked if he thought Kings players and staff would get paid at the end of the month, Kempson said: “No. Unfortunately we are of the opinion that we are not going to get paid.
“I understand the difficulty of the players and staff five days before payday.
“To have this dropped in our lap on Saturday is a hell of a thing for families with kids.
“Life beyond this month is going to be very difficult for all of us.
“The players took pay cuts willingly in view of the fact that we were guaranteed our salaries until the end of December.
“The players are an intelligent group of guys and nobody saw much happening beyond December.
“We are out of PRO14, and we took that on the chin.
“But beyond December, and going into the next season, we all realised that PRO14 for the Southern Kings was done.
“But to have this thrown into the mix out of nowhere has taken everyone by surprise.
“The Kings chairman (Andre Rademan) on various occasions said we were not playing in our domestic competition in view of the fact that he is saving the salaries.
“That was in an open forum with all the players that was had by the chairman.
“All these promise were made, but to have this rug pulled out from under the feet of players and staff is a hell of thing for them to deal with.”
Kempson said the players were informed of the liquidation at a meeting at EP’s Rugby’s headquarters at Imatu House.
“There were about 15 players and about eight staff at the meeting. Kings board president Andre Rademan and board member Jannie Louw addressed us and everyone else dialled in on zoom.
“Unfortunately the zoom cuts off after 40 minutes and when that cut off abruptly, the meeting was cut off as well.
“After the zoom meeting our players representative Bobby de Wee, assistant coach Braam van Straaten and myself went into Andre’s office so we could discuss things further and get more clarity for the players and staff.”