Rugby

Lions 'hopelessly insolvent'

2012-02-13 13:32
Kevin de Klerk (File)
Johannesburg - Golden Lions rugby is hopelessly insolvent, this despite on Thursday announcing a three-year multimillion-Rand sponsorship deal from property firm Redefine.

A 140-page forensic report compiled by accounting firm KPMG last year, and other documents in the possession of City Press, paint a dismal picture of the Golden Lions and its marketing and managing company, Ellis Park Stadium (Pty) Ltd (EPS).

The report shows that Golden Lions rugby nearly lost its most prized asset - Ellis Park - and the company managing Ellis Park was so mismanaged that it had exposed its directors to possible criminal prosecution.

The last financial report (2010) shows that its total liabilities exceeded its assets by R73 million.

According to the documents and a reliable source close to the developments, Golden Lions rugby owes different parties about R90 million.

This is far less than their total income of around R44 million from the SARU-SuperSport television rights and stadium naming rights from Coca-Cola.

The money is shared with Ellis Park World of Sport (Epwos), the Ellis Park stadium management joint venture that also incorporates Johannesburg Stadium and the Standard Bank Arena.

The union reportedly makes about R400 000 per home game (13 games per season) on gate takings. This depends on Super Rugby/Currie Cup match attendances, which average about 15 000 before match expenses, including Epwos’ share.

All suites income goes to Epwos.

There is a huge shortfall to cover players salaries and the operations budget of about R90 million per annum.

Another disturbing revelation was the disparity between the salaries of players in the Golden Lions.

Springbok Butch James earned over R3 million for the 2011 season in contrast to flyhalf and Currie Cup final man of the match Elton Jantjies’ less than R500 000.

NEXT ON SPORT24X

Settled squad pleases Ludeke

2014-11-26 17:05

 

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
28 comments
Add your comment
Comment 0 characters remaining
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

 

Hottie of the day: Nicole Meyer!

Nicole is the cover girl for the 2014 edition of SA Swimsuit! Check out some smoking hot pics of here here.

 
 

Men24.com

11 things men don’t know about their clothes
Hilarious mortal kombat elevator prank!
This is how the Top Gear presenters spend their £55 million!
Thirty and still single? There’s hope!
 
 
/Sport
Men
Women
Love 2 Meet
Featured

Got something you'd like to get off your chest? Got a burning desire to air an opinion? If so, be sure to sign-up on Sport24's FORUM!

Latest blogs
Vote

Who would you like to see start in the No 10 jersey for the Springboks at next year's Rugby World Cup?

Twitter Follow Sport24 on Twitter

Facebook "Like" Sport24's Facebook page

Newsletters Sign up for the Morning Glory, Super 15 and Soccer newsletters

WIN Enter and win with Sport24!

Mobile Sport24 on your mobile phone - WAP, alerts, downloads, services

Forum Have your Say on Sport24's brand new Forum!

BlackBerry Stay in the loop on your BlackBerry

iPhone Latest Sport24 news on your iPhone

RSS Feeds Sport news delivered really simply.

Blogs Yes your opinion counts. Get it out there

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