File
The Southern Kings have been placed into voluntary liquidation to secure the longer-term financial future of rugby in the Eastern Cape.
This, after the shareholders, the Eastern Province Rugby Union and SA Rugby, took the decision in the face of an accumulated deficit of R55m, and with zero income in prospect for the remainder of 2020.
“The hard fact is that the Kings are insolvent, with significant debts and zero assets and it would have been reckless of the board to continue to trade,” said board chairperson Andre Rademan.
“In the absence of any rugby in 2020, and without any guarantees as to income prospects for 2021, it would have been financially irresponsible of the shareholders to have pumped in further funding.”
SA Rugby president, Mark Alexander, said extending additional credit to an insolvent entity at a time when the rugby industry is required to make a saving of R1.2bn to stay afloat this year was not an option.
“The history of the Kings has been one of expectation and anticipation but unfortunately the parallel story of commercial failure couldn't be wished away any longer,” he said.
Rademan said it was time for the Eastern Province rugby community to consolidate and take stock.
