Rugby

Ex-backers take Lions to court

2012-01-24 14:38
Lions president Kevin de Klerk (File)
Sport24 staff

Cape Town - The Guma TAC group say they have initiated legal proceedings to recover their loan following the souring of their relationship with the embattled Golden Lions Rugby Union.

In a media statement on Tuesday, they said they were “disappointed that our dream of transformation in the Golden Lions could not be realised”, adding that “the executive management and the Lions’ new investor, businessman and Lions deputy president Altmann Allers, have left us with no alternative”.

Guma TAC claim they “provided the Lions with millions of rands to pay the salaries of the Lions players and staff for both December 2010 and January 2011”.

They also said in the statement that had the Lions failed to pay the players’ salaries over that period, it would have led to the breach of player contracts which would have led to an exodus of key players.

“Furthermore, the loans enabled the Lions to sign top international players like Butch James and Lionel Mapoe and to pay the 24 amateur feeder GLRU clubs their GLRU grants.”

Guma TAC say they also funded secure accommodation and transport for Currie Cup 2011-winning coach John Mitchell “following the unfortunate house-breaking and stabbing attack on him at his apartment”.

They added: “As you are aware, Guma TAC on its own, within the GLRU, managed to sign up both MTN and Discovery (over R60m, three-year) sponsorships.

“When SARU finally approved our transaction, Lions president Kevin de Klerk and his executive, which included (Allers) frustrated the finalisation of the transaction by refusing to confirm SARU’s approval.

“We nonetheless ... afforded the Lions an opportunity to repay our loans and to facilitate an amicable and negotiated exit once they got a replacement equity investor.

“We were dismayed when the Lions’ executive management and the new financier Allers not only refused to pay us but now deny that they owe us anything.”

Guma TAC said it “hurt” them to have to turn to the courts to recover money that was “loaned in good faith at a time the Lions’ bankers refused to extend further credit facilities and the Lions’ president (De Klerk) turned to us in desperation to advance funds to pay, amongst other commitments, the players and staff”.

“We have a deep affection for the team, its players, the staff and fans.”

Read more on:    kevin de klerk
NEXT ON SPORT24X

 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
11 comments
Comments have been closed for this article.
Live Video Streaming
  • Blitz
    Mon, 24 Nov 2014 @00:00
  • SS1
    Mon, 24 Nov 2014 @01:00
  • SS2
    Mon, 24 Nov 2014 @02:00
  • SS3
    Mon, 24 Nov 2014 @03:00
Video Highlights
Sport Talk

 
 
/Sport
Men
Women
Love 2 Meet
Sport24 on Twitter

Follow Sport24 news on Twitter

Featured

As the Absa Premiership nears the Christmas break, a little over half the season remains. Who will be crowned champions when all is said and done? Which teams will be relegated? Stay glued to Sport24 to find out!

Latest blogs
Vote

Which South African franchise stands the best chance of winning this year's Super Rugby title?

Twitter Follow Sport24 on Twitter

Facebook "Like" Sport24's Facebook page

WIN Enter and win with Sport24!

BlackBerry Stay in the loop on your BlackBerry

RSS Feeds Sport news delivered really simply.

 
There are new stories on the homepage. Click here to see them.