Nelson Mandela Bay Executive Mayor Danny Jordaan has announced a support package in favour of EP Rugby to the maximum total value of R20m.
Currently an amount of R6m has been budgeted for support towards the Union and Council is set to ratify this increased allocation this month. The announcement comes hot on the heels of EP Rugby PTY LTD being permanently liquidated in the PE High Court on Thursday.
Acting City Manager Johann Mettler said the Metro's intervention is to ensure a second viable anchor tenant for the Nelson Mandela Bay Stadium along with the professional football team Chippa United. "It is critically important for rugby in the Eastern Cape that the Union remains competitive and competes in the Premier Division of the Currie Cup. It is equally important for economic development in the Metro area that topflight games are played at the stadium thereby increasing economic activity not only for the North End area but for the entire Metro" he said.
Mettler said the support package is intended to endure for 12 months only after which the Union must be in a position to sustain itself.The City Manager has been tasked to ensure that, in consultation with the Union through its administrator Monde Tabata, the EP Rugby (Pty) Ltd Liquidator, and SARU that a suitable vehicle is established to drive the support package.
Negotiations are also underway to procure suitable players, coaching staff and a CEO to manage the affairs of the entity. The Metro further requested SARU to negotiate that the first fixture of the Currie Cup be deferred to a later date to enable all arrangements to be finalised. It is intended that the first game will be played in round two on 13 August.
