A new rugby era, but at what cost?

BY THE time you read this, the fate of London Irish would have been decided, sealed and signed, the proclamation of their downfall or survival pinned to the town hall door and the herald ejaculating for all to hear: “Hear, ye! Hear, ye! Know all men and women by these presents.”

The Exiles could become the third English Premiership team to enter administration this season – after Worcester Warriors and the Wasps in the second half of 2022 – by then, and if that happens, they will surely be sanctioned and banned from all rugby-related privileges and activities.

It makes for grim stuff if you are an English rugby fan, and it is an important warning that SA Rugby and supporters must not and cannot ignore if they are to protect our game from a similar fate.

Earlier this week, it was revealed that the salary cap for the four franchises – the Bulls, Lions, Sharks and Stormers – would be increased from the agreed-upon R61 million to R85m. Moreover, the new agreement would allow for a handful of marques players to be signed to each team, who will fall outside the cap.

An understanding between the various stakeholders and MyPlayers has yet to be reached regarding the how, the who and the when concerning the marques players. The process, however, has been given a tentative thumbs-up, and I would argue that it must be done with an almost overly cautious mindset.

There is no doubt that when SA Rugby starts receiving the monetary benefits of playing in the United Rugby Championship and European Professional Club Rugby competitions, the good times will roll in; and there can be no doubt that this newfound confidence to increase the cap is largely due to this future boon.

But, on the flip side, there is a concern of overreach. That disastrous narrative is playing out in England, where the Wasps, Warriors and London Irish found their expenses outstripping their income. Creditors were left unpaid while the players, management and support staff did not receive their wages and salaries.

The Western Province Rugby Union find themselves in a process of prolonged administration, propped up by the national union. Earlier this month, Max Fuzani took over the job from Rian Oberholzer and will, hopefully, complete the objective of returning the union to financial stability.

The reality, however, is that such an occurrence is not far removed from our game, and the WPRU – and the Stormers, for that matter – exist only because SA Rugby had the financial clout to step in and save them.

Moreover, the truth is that while our rugby operates in a healthy space, the red in a ledger is not far away. The Lions operate in the black by presumably fine margins, if their CEO Rudolf Straeuli’s musings on the topic are to be interpreted correctly; as do the Bulls and Stormers. The Stormers have serious investment from the US, while the Bulls also enjoy a degree of private backing.

The increase in the salary cap, and the possibility of multimillion-rand deals for marques players will place more financial strain on the teams. The pressure to win and be successful will increase the drive to sign more expensive players to outpace rivals, creating a vicious, unsustainable circle.

It is then a fine line, a knife’s edge, a balancing act for the franchise, lest they fall into the trap of seeking success instead of fiducial certainty.

And that is more important to me, than any short-term trophy rush.