The future of Western Province rugby has been “saved”, according to president Thelo Wakefield, after a new entity owned by the union and backed by Johann Rupert’s Remgro bought the liquidated company on Thursday.
Wakefield told Independent Media that the WP Rugby Union will own 51% of the as yet unnamed business that will form the commercial arm, with Remgro Sport Investments taking up the remaining 49% shareholding in a deal concluded on Thursday by liquidator Chris van Zyl.
The purchase price is sure to be a multi-million rand figure, and although Wakefield did not want to reveal the exact amount, Van Zyl said in a statement that it was “more than twice the net asset valuation conducted by a large audit firm and verified by another independent audit firm. In addition, it is more than 10 times the estimated value of the assets on a breakdown basis under forced sale circumstances”.
Wakefield said that all salaries of players and staff will be honoured for December and in future by the new company. “The button has been pressed, and it’s now for the bank to do the EFT and the transactions,” he said.
In terms of any creditors’ claims - with multimedia company Aerios wanting R72 million for their services and commercial rights - Wakefield said that those issues have been resolved.
“We don’t owe any creditor. I don’t want to single out Aerios. But at this stage, as we speak, we don’t owe any creditor whatsoever. All creditors will be looked after, all staff members will be looked after. There is no need to worry. Any claims from creditors have been and will be settled,” he said.
“I am not going to divulge the numbers (of the purchase price) because we must respect the fact that I have a constituency to report to, and I respect my General Council. I don’t want them to read it in the newspaper.
“What I have done this afternoon is to inform them that Western Province rugby is safe and sound, and that there will be further information as we go along. I don’t them to read it in the newspaper. Ethically, it’s not correct.
“That’s proper value (with regards to assets). The liquidator applied his mind and the selling price was verified by various auditing firms, and they did their work and the documentary proof was there.”
Aerios told Independent Media on Thursday that they will “release a statement after consultation with our legal advisors”.
When asked if Remgro had been the main contributors to the purchase of the WP company, Wakefieldsaid: “I’m not going to say that. The WP Rugby Union is solvent. It is the WP Rugby (Pty) Ltd that was insolvent. As the union was the majority shareholder, and together with our equity partner, we stepped in and saved the situation.
“A new board will be constituted for the new company, and it will be a combination of the WP Rugby Union and our equity partner Remgro. We are looking forward to working with Remgro to build the company on a sound basis and sound foundation. There are big plans ahead – all the properties are covered.
“It’s a brand-new company, and the name of the company must still be registered – it’s K-something, I can’t remember. We are in full control of the company, and we have our commercial rights back and advertising rights back. The company will have a new board, with a new chairman, and it will consist of directors and the chairman, and it will function normally like any other company – stricter control measures, etc.”
The Stormers are set to begin their Super Rugby campaign on February 25 against the Bulls at Newlands, and Wakefield insisted that the players’ contracts were not in danger.
“In terms of Section 197 of the Labour Relations Act, no players or contract of any player or staff member will be in jeopardy. We are bound by the Section 197. Like I said, the contracts will be honoured and there is no need to panic. We are back on track and on our way,” he said.
“The way forward for WP rugby involves hard work, and togetherness. A proper governance of all our stakeholders, which include our fan base who have been loyal to us. That is what we are looking forward to. We want to take this new company forward in the right spirit, and the good news is that rugby in the Western Province has been saved.”
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