SA Rugby is set to assume control of embattled Southern Kings - report
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SA Rugby is set to take administrative control of the Southern Kings franchise according to a report by Sport24.
Three Eastern Cape sources have informed the publication of the developments with the Kings' Staff having reportedly been called into a meeting on Monday to officially inform them of the administrative takeover.
The news comes after the PRO14 club's players, coaches and staff were all paid their April salaries 10 days late. The privately-owned franchise made the payments after being bailed out by a R6 million (about 310 000 euro) emergency bail-out from the Nelson Mandela Bay Metro.
With a playing salary bill of more than R3-million (about 154 000 euro) per month, Sport24 understands the Kings were once again on the brink of defaulting on staff and player wages, forcing SA Rugby to intervene.
Less than two weeks ago, SA Rugby CEO Jurie told media that the only way the rugby governing could intervene would be if the private equity shareholders - the Greatest Rugby Company in the Whole Wide World (GRC) - broke clauses in its agreement such as failing to avoid going bankrupt, not paying salary bills, SARS or suppliers.
