WP Rugby faces tough choices

While one half of Western Province’s warring parties attempts to keep the wolves at bay, the other is courting legal eagles.

WP Rugby stands at a precipice and their professional and amateur divisions have opposing views on how to step back.

Ebrahim Rasool, WP professional rugby chair, has resigned himself to things taking a turn for the worse, while WP Rugby Union president Zelt Marais is rolling up his sleeves for further legal combat.

“We must prepare ourselves for a difficult future for WP Rugby,” said Rasool. “If we don’t put the settlement amount in Flyt’s account on the 30th they keep our title deeds,” he said about the implications of the agreement WP made with the property developer.

“For Flyt to return our title deeds and stop all damages claims, they want repayment of the (R113m) and interest (at 22%) and compulsory dividend of R32m after 42 months.”

Marais believes he can contest that agreement in court, which is likely to prolong the bitter infighting that has characterised Western Province rugby over the past few years.

“We are very confident that cost will be recovered from the other party,” said Marais about the legal fees.

“There is a misplaced sense that he can prevail legally over Flyt,” said Rasool.

“Managing it has cost us R2.8m in legal fees already since January and that’s without being in court. If we don't stick to our agreement we also don’t get the R10m that eases our cash flow. We don’t start the WP Devco that develops our properties. September 30 is the absolute deadline,” warned Rasool.

He gave a sobering example of the conversations the franchise has had.

We must prepare for a difficult future for WP Rugby Ebrahim Rasool

WP professional rugby chair

“Zelt Marais has undertaken with SA Rugby that he will guarantee the costs of the Stormers in Europe. That was the condition under which the team left Cape Town for Italy. I hope this is real and that there is money for the payment of the team,” said Rasool.

Marais confirmed the guarantee with SA Rugby. “We will partake in that competition,” he said. But there are questions about whether WP Rugby is a going concern.

“We need an SOS to SA Rugby to advance money that is due to us,” said Rasool. “We will also look at the possibility of persuading DHL (their sponsors) to advance the next tranche of money. But I know that DHL first wants a declaration of whether we are a going concern,” said Rasool.

Rasool wants SA Rugby to set in motion measures that will enable them to steer the affairs of the union.

“SA Rugby can invoke clause 28 but I think the question SA Rugby must be facing is whether they want to assume financial responsibility for WP. I would prefer them to place WP under administration rather than us placing ourselves under business rescue. Business rescue is very expensive.”

Marais blamed WP’s cash crisis woes on the pandemic but their financial woes predate the advent of Covid-19.

“The main reason is Covid,” said Marais. “It has wiped out 50% of our revenue. And we never thought it would last two years.”

Marais, who has survived a meeting in which a vote of no confidence was supposed to be taken, will again face the same action on Monday. Rasool, meanwhile, is also in the crosshairs with Tygerberg RFC petitioning his removal as chairperson.

The malaise at WP will likely to continue.