Former Sharks CEO Eduard Coetzee argues that without third-party investment, the four leading South African rugby franchises risk liquidation.
Writing in his thesis Private Investment and Private Equity Investment in Rugby Union: The Case of South Africa at the Geneva Business School, Coetzee highlighted the financial struggles of local rugby.
Coetzee’s thesis, as covered by Rapport, urges SA Rugby (SARU) to adapt to the financial challenges by modernising its structure and ensuring the sport’s sustainability through better investment strategies.
MORE: SA backs Premiership merger
He reveals that the Bulls, Sharks, Lions, and Stormers collectively lost R150 million in 2023, with private investors covering these losses.
Coetzee criticises SARU for excluding franchise shareholders from decision-making despite their financial support. He recommends reducing the number of professional teams and allowing shareholders more involvement in governance.
He also proposes a centralised contracting model, which would ensure better talent distribution, salary caps, and standard contracts for players.
One of Coetzee’s boldest suggestions is creating a “Super League” featuring top teams from England, France, Ireland, and South Africa. This league, he argues, could attract more sponsorship and TV revenue, increasing the commercial value of the sport by 30 to 40%.
Photo: Steve Haag/Gallo Images
The post ‘Private ownership saving SA rugby’ appeared first on SA Rugby magazine.
Src: sarugbymag.co.za
