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.



Read News24’s Comments Policy 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
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

Love 2 Meet
English Premiership flutter

Take Sport24's "expert" tips at your peril...


30 of the world's greatest golfers will be heading to the Gary Player Country Club for this year's Nedbank Golf Challenge - now in its 35th year. For all the latest news, player profiles, hole-by-hole descriptions and past winners, be sure to check out Sport24's dedicated section.

Latest blogs

Irrespective of the result of the Springboks' bronze medal match against Argentina, should coach Heyneke Meyer be offered a contract extension?

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.