REVEALED: SARU 'walking away' from Newlands drama

Today at 01:20 PM

The South African Rugby Union has given up on trying to sell Newlands and recoup the money owed to Dream World Investments 401 (Pty) Ltd - who holds bonds on all of the Western Province Rugby Football Union properties.

After more than three years of administration - with SARU attempting to find a willing and able buyer - the national body is now going to let the legal process run its course.

Last week, it was revealed that Dream World has called up the bonds they hold on all the WPRFU properties – including Newlands, Millhouse, Brookside and Oranjezicht.

Days later the SARU Executive Council advised the administrator of WPRFU, Peter Jooste, to 'wind up' the union's period of administration.

Jooste told @rugby365com that he was keen to continue the process he had started and had a buyer who has 'completed his due diligence'.

"I want to emphasize that WPRFU remains fully committed to working with Dream World to resolve this situation," he said, adding: "We are close to finalising this agreement, and it would be a significant setback if we are unable to complete this deal."

However, @rugby365com can reveal SARU is going to 'end' Jooste's term and has embarked upon the 'handover process'.

While it clears the way for the union to hold elections, when SARU hands back the property mess to the union and its 90-odd clubs, those who allowed the Zelt Marais executive to govern it into such a horrifying state, they will have to deal with the protracted legal process that encompasses the Dream World decision to call up the bonds.

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WPRFU was placed in administration in October 2021, when the union was in such a dire financial position and governance in such disarray that it was effectively 'bankrupt'.

Rian Oberholzer, now SARU CEO, was the initial administrator. He was replaced by Max Fuzani on a 'six-month' contract, with Peter Jooste becoming the third administrator in January 2024.

The writing was on the wall for the Jooste era, when SARU placed a footnote on their media release last week, suggesting the proposal to sell the properties was "rejected by the clubs" on 10 June 2024.

That was in stark contrast to the minutes of meetings from that time - the Special General Meeting on June 10 and the WPRFU council meeting a month later, July 8.

In the June meeting, of the 66 clubs who attended, 44 voted by show of hands and mandated Jooste to complete the sale of Newlands Stadium and additional properties if required.

He was also told to negotiate a settlement with Dream World to have the bonds cancelled.

On July 8, after much noisy dissonance, the administrator requested order in the Cape Town Stadium gathering and mentioned that the purpose of the meeting was to vote on the resolution passed at the previous meeting.

The vote count revealed that 94 percent of the clubs present voted in favour of one of two offers on the table.

It does beg the question: Why did SARU claim the clubs voted 'NO', when the minutes of said meeting prove otherwise?

Like Dream World, it appears SARU has had enough of the petty politics governing the game in the Western Cape.

With the professional arm, Stormers Rugby (Pty) Ltd, owned by Equity partner the Red Disa consortium, the clubs are left with the mess they allowed to develop without encumbering the professional teams.

@king365ed
@rugby365com

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