SARU makes R24m profit

2012-03-20 12:55

Cape Town - The South African Rugby Union (SARU) reported a pre-tax profit of R24m in 2011 – a year during which participation at the IRB Rugby World Cup traditionally increases costs, while depressing the earning capacity of international rugby federations.

The result was due to an 18% increase in earnings, allied to cost containments in operating expenditure, excluding allocations to provinces.

“It was a year of severe cost cutting, during which we restructured the operational side of SARU to be more streamlined and efficient,” said SARU CEO, Jurie Roux.

“We converted 16 different divisions into seven new departments, more effectively aligned to deliver on our mission to provide outstanding strategic leadership for the business of rugby. That we were able to do it while containing costs was doubly pleasing.” 

Total operating expenditure increased by 12%, largely due to a 76% increase in broadcasting rights allocations to provinces.
The increase in operating expenditure however, excluding broadcasting rights allocations to provinces, was contained to only 2%, well below the prevailing inflation rate.

Group revenue grew to R597m (from R505m in 2010) due mainly to a significant increase in revenue from broadcasting rights at the start of a new five-year contract.

Sponsorship income grew by 11% as a number of contract renewals were confirmed and new sponsors became involved or others increased their rugby portfolio.

The jump in pre-tax profit from an operating loss before taxation of R5.4m, 12 months ago, was in line with SARU expectations.

“We had forecast a reasonable profit for 2011 and the eventual outcome was ahead of our expectations,” said Basil Haddad, SARU’s chief financial officer. “Given that the new broadcasting agreements and a number of new sponsorship agreements, which commenced in 2011, are essentially fixed until 2015, and that operating cost containment continues to be an operational priority, it is likely that that a reasonable profit will be achieved in 2012.”

“We have set ourselves an annual profit target of not less than 5% of annual operating costs, excluding rights allocations to provinces,” said Haddad. “The aim is to build up sufficient cash reserves in order to weather unforeseen growth in expenses beyond inflation.”

SARU’s full financial statements will be presented to the Annual General Meeting in Cape Town on March 30.


  • Itumeleng - 2012-03-20 13:11

    Maybe CSA can learn a thing or two from SARU about proper financial management. Don't stick your hand inside the cookie jar.

  • Bill - 2012-03-20 13:16

    Simply put - The CEO did not pay himself and his cronies any secret bonuses. We hope.

  • roberta.keeling - 2012-03-20 13:17

    Can you see the top people rubbing their hands in glee? They probably think becuase of all that money, they should get a bonus! And if they do, it will be a fat one as well!

  • stefan.vanderspuy - 2012-03-20 13:32

    They turned SARU around from a loss the previous to a profit this year. This only happens through dedication and hard work. Maybe they did get bonuses, who knows, but in this instance they would have been deserved.

  • Francois - 2012-03-20 13:38

    well done to Jurie Roux

  • jpstrauss - 2012-03-20 14:17

    That's not a huge profit if one considers the size of SARU.

      Dewald - 2012-03-20 16:49

      In South Africa much smaller businesses sets up much bigger losses. Let's be glad for this one

  • Blaine Dillon - 2012-03-20 14:36

    Can SARU now make Rugby Tickets cheaper, as Soccer Tickets is half the price of Rugby Tickets.

      sean.looney - 2012-03-20 18:46

      have you seen the sorry state of affairs that is SAFA?

  • johan.blertsie.cilliers - 2012-03-20 14:50

    If they make that much money, why are we still paying ridiculous prices to be able to watch tests?

  • Lion - 2012-03-20 17:27

    Only 24 Mil? There is a snake somewhere. After a WC year and all the sponsorships etc. It must be way more than that.

  • braamc - 2012-03-20 18:36

    Before or after theft and corruption?

  • Thomas - 2012-03-20 19:57

    Sponsorship grew by 11% plus some new sponsors!! That is because even when our teams lose a super game it is still a close fought game!! Now kick one of them out and bring in the NO HOPERS and see if your sponsorship grows??????????

  • Fernando - 2012-03-20 20:46

    24m or not, its a profit. I know with the scandals thats going around the other sports pheres, this one looks good. so i should say congratulations SARU

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