Equity partners bring smiles to the Mother City
The Red Disa Consortium’s venture into rugby isn’t so much an exercise in putting money where their mouth is as an investment in the grin of the collective.
Well before they took a 74% stake in the commercial arm of Western Province, it had been the stated ambition of the Stormers to bring a smile to the people of Cape Town.
“You just have to go to the stadium on Saturdays to see the amount of joy people get from watching the team and what they represent,” said newly installed WP Rugby interim CEO Johan le Roux.
“There is just something about the Stormers; there is something special about the brand. From our perspective, it really was philanthropic. It isn’t a very lucrative opportunity, it is about giving back to the community in which we operate,” he explained.
Not that Le Roux turns a blind eye to a buck. “The fans bring business, but business also needs to step up and recognise this is more than a commercial venture. It is there for the people,” he said.
“More investment into the team leads to on-field success and then you get more fans and it becomes a virtuous circle. There is something in it for everyone. There are lots of ways to get involved. La Rochelle (Stade Rochelais) got it right.
The double defending holders of the Champions Cup certainly have their small west coast community in France in a frenzy.
To emulate the best in the Champions Cup, the Stormers have some growing up to do. “They have brought a mature approach,” said Stormers director of rugby John Dobson of the new equity partners.
“They want us to be sustainable. This place has been bleeding a lot of money for a while. We were liquidated in 2016. We are growing revenue streams and cutting costs and then we’ll invest in players. To win something like the Champions Cup, I think we are a few years off. It is probably a three to five-year framework. The Champions Cup, this year, next year, definitely not.”
Dobson was hoping yesterday’s clash against Stade Rochelais would present the Stormers a proper diagnoses of where they are.
Le Roux said they can only slap a time frame on success in the Champions Cup based on how quickly they can turn the financials around. “I don’t know how much investment will be needed to challenge in that competition,” he said candidly.
“Some of the French teams operate with a budget 100% more than ours. Cape Town is a fantastic city, with a decent budget and with Dobson as the coach you can challenge any team in the world.”
Le Roux said for the Stormers to routinely win on the road in Europe would require a five-year plan. He stressed that while the business stabilises, the franchise will focus on their retention policy. “We here in the Western Cape and the Boland are the shopping mall of South African rugby,” reminded Dobson.
“All our schoolboys get these offers and we are not ready to respond to that adequately. But how much do you want to pay for schoolboys?”
As director of rugby, the player recruitment budget falls under Dobson’s remit. He will be in charge of recruiting the senior squad, while the pathway for junior players will be plotted elsewhere.
His job though hasn’t really changed. “It was about giving the new owners clarity about the rugby programme... about reporting and accountability. No change to parking or remuneration or anything like that.”
It’s all part of making Cape Town smile.