A “shocked” Mark Alexander said SA Rugby will deal with those unions considering not paying the fees that the governing body has charged for hosting Tests in 2024.
According to widespread reports, rugby bosses from the Sharks, Bulls, Stormers and Lions have sought legal opinion after SARU requested a combined R85 million in fees for hosting the six Tests in the Republic this year.
Cheetahs CEO Ross van Reenen told News24 that the Free State outfit will not stand with the rest of the unions opposed to paying the fees, and believes the issue is set to be a “prickly” one during a SARU general council meeting on Thursday.
Speaking during a Springbok conference with head coach Rassie Erasmus in Cape Town on Tuesday, Alexander elaborated on the costs of hosting international matches while highlighting the “goodwill” shown by SARU to the local unions.
“We’ve strategically allocated Tests to our unions, the ones who have stadiums, and that was done to boost their season tickets [sales], and hospitality and suites as well as assist them in generating additional revenue,” the SARU president said.
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“It’s unique because we’re the only international rugby union that allocates Tests to [union] members. Internationally if you look at what Test revenue brings in for organisations … like 48 million pounds last year, and that’s without hospitality… We’ve been more than generous to assist our franchises in generating additional funds for them.
“What shocked me was to read about it in the press, without talking to us first. The first time we saw it was published in the press. But that we’ll deal with at our members’ forum on Thursday.
“We thought we were assisting them and showing goodwill allocating Tests, where around the world that’s part of the union’s main revenue stream.”
Alexander added: “For unions to complain to pay for the Test guarantee… What’s a Test guarantee for? The Test guarantee is because we have to pay for the services of the Springboks, we have to pay for the costs of our guests, we have to pay for activation of our Test venues and advertising that goes around it.
“There is a cost involved and the number that we’re asking for is small, considering the revenue they can generate. The revenue on a 50 000-seater stadium is minimum R45 million to R50m.
“That money could be shared among all 14 unions but we’re assisting the bigger unions because we understand that they’re the golden goose because they play at a different level to the rest.
“But to read about it in the press is a sad day and we will deal with that at our members’ forum.”
Photo: Samuel Shivambu/BackpagePix
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Src: sarugbymag.co.za
