CAPE TOWN - The board of the Southern Kings have withdrawn the team from any possible domestic competitions in 2020.
The players and staff were informed of the decision on Tuesday morning, following an urgent meeting of the board on Monday afternoon, where the decision was made to ‘voluntarily’ cut the side from any local action this year – which is set to be an extended Currie Cup competition, while there have also been talks of a local Super Rugby competition to precede the Currie Cup.
Andre Rademan, chairman of the Southern Kings board, said in a statement that the decision was “taken reluctantly in the face of hard, financial realities”.
"Following several weeks of interrogation of the Kings' financial state of affairs we were left with a straightforward choice," said Rademan.
"We could opt to field the Kings in the domestic competitions mooted by SA Rugby for the sport's post-lockdown resumption if we so wished.
"If we did so, it would require additional loans to the Kings or extra investment from the shareholders to the tune of R6.5m, which would add to the organisation's existing substantial debt.
"However, as there was no contractual requirement for the Kings to resume short-term participation in the PRO14 competition, because of air travel restrictions, and as the Kings had no other commercial commitments to honour, the most prudent decision was to withdraw.
“This may not be a popular decision but in the current circumstances it is the right decision.”
The statement also said that the decision was supported by the executive committee of the Eastern Province Rugby Union (EPRU) and SA Rugby – the two shareholders in the Kings company.
"This is obviously very disappointing news for the players and management who, like all rugby professionals, were desperate to resume playing,” said Rademan. “But the board believed that further investment in 2020 with zero commercial return would be reckless in the extreme."
"As a board we had been considering further short-term contracts to see the squad through to the end of the year," he said. "But it became apparent that we would be throwing good money after bad in the current global environment.
"We now have time to consider what is the best way forward for rugby in the Eastern Province in this fluid and financially challenging environment."
Rademan, who is also president of the EPRU, further said that consultation would take place with the Kings staff in the coming weeks to decide on the next steps for the team.
SA Rugby assumed management control of the Southern Kings in June - having taken back a 74% shareholding in the organisation in partnership with the EPRU.
The move was made following the failure of the former majority shareholder (the Greatest Rugby Company in the Whole Wide World) to meet its financial commitments relating to the acquisition of the shareholding.
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