My Players, the body that represents South African rugby players had a go at the ‘cold-blooded amateurs’ who is currently running the professional game in South Africa.
MyPlayers issued a statement on Sunday wherein it slammed the “regularity and manner in which commercial entities of amateur unions are being liquidated” in South Africa.
The Kings (twice), Valke, Border and Western Province was liquidated during the past five years with no consequences to the Unions. Unions that have filed for liquidation of its professional entities, continue to benefit from participating in professional competitions.
“Come Monday, it will be life as normal for the union.
“It will still enjoy its voting rights on the SARU General Council and be allowed to make important commercial strategic decisions on the direction of the professional game even though their own commercial entity failed.
“On all occasions, the Players’ Organisation has been in the trenches of this seemingly normal occurrence in our domestic game,” Eugene Henning, CEO of MyPlayers, said in a statement.
“We have seen and experienced the human impact this has on players who lost their livelihoods as a direct result of the mismanagement of the professional game.”
“It is just not good enough for a Union to shift all the financial blame to the commercial entity that was set-up and co-managed by the Union,” Henning said. “It is an easy buck to pass when you suffer no consequences for the failings of your commercial entity.
“They will still receive their normal financial distributions from the professional game from SARU and be allowed to participate on the field in the professional game although their own commercial entity was liquidated.
“However unthinkable, they will be allowed to immediately set-up a new commercial entity like the one they had just voluntarily liquidated.
“There is thus a clear incentive for Unions to liquidate commercial entities and walk away from financial obligations to get a clean second bite at the cherry while creditors and employees are left in the dust to pick up the pieces.
“Unless Unions are held accountable for the failings of their commercial entities, there is no reason for this ‘rinse and repeat’ culture to be eliminated from professional rugby in South Africa.
“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.
“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.”
In the statement, MyPlayers proposed that after the liquidation of a commercial entity:
- The Union must not be allowed to participate in professional rugby until such time they have demonstrated their capacity to adequately manage a commercial entity.
- During this time the Unions will receive substantially smaller distributions from SARU. They must forfeit their voting rights on SARU's General Council on any matters pertaining to professional rugby.
- The Unions must also undergo a professional rehabilitation process and only be allowed to operate a company and participate in professional competitions again once they have demonstrated that they are capable of running a successful and sustainable commercial entity.