South Africa’s major franchises the Bulls, Lions, Sharks and Stormers have been assured of their participation in the United Rugby Championship (URC) for the next four years.
The South African Rugby Union (SARU) broke the news to the four franchises via a letter after the governing body informed them last year that they would have to reapply to participate in the URC.
SARU then drafted a document which gave each of the aforementioned franchises a fair chance to apply for URC participation over the next four years, according to strict criteria.
“It’s a process that had to be followed,” a source told the Rapport website.
‘It’s unfortunate that the timing worked out this way’
“The governing body must adhere to its own rules and regulations. It’s unfortunate that the timing worked out this way, but it was decided before Rian Oberholzer was appointed as the CEO.
“SARU must have gone through a process again to identify the four URC teams. Everyone had a chance and there is nothing strange about this.”
One of the franchises’ shareholders and one of the other major sides’ CEOs feel the process of reapplication was a waste of time.
“Finally, we have put together a neat document that we will be able to use for discussions with sponsors and so on,” said the shareholder.
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“I think sponsors just accept that the status quo will be maintained. And contracts make light provision in case that’s not the case.
“Practically it doesn’t change anything. It was just politics. SARU wanted to show the small unions that everyone can get a chance to participate in the URC. You just have to put in a good tender, then it could be you.
‘There are no other possible teams for the URC’
“The URC apparently didn’t even know that we had to participate in the process. From their point of view, there are no other possible teams for the URC.”
Meanwhile, the CEO said he is still unsure how the franchises will benefit financially now that SARU will become a full shareholder in the URC from June.
“One will first have to see what expenses there will be with flights, among other things, but I estimate that each local franchise will receive approximately R5 million to R6 million more annually because SARU is now becoming a member of the URC,” he said.
“The big difference now that we become a member versus just a participant is that SARU does not have to pay annual participation fees.
“The money that SARU got from SuperSport and someone like Vodacom now goes straight to the URC. In the end, it works out more or less the same.”
Src: Planetrugby.com - https://www.planetrugby.com/news/saru-gives-update-to-south-africas-four-major-franchises-on-their-united-rugby-championship-status
