Cape Town - SA Rugby is facing a tough financial battle and it may take some time to emerge from its current slump.
The rugby governing body did a presentation in front of the Portfolio Committee of Sport and Recreation in parliament on Tuesday when it reported a net loss of R33 million in 2017.
Furthermore, the SA Rugby Group, which includes the governing body's subsidiaries, suffered a net loss of R62 million. The SA Rugby Group promotes, develops and supports all levels of rugby in South Africa.
The reasons for the heavy loss were attributed to the failed 2023 Rugby World Cup bid, the costs involved in getting the Cheetahs and Southern Kings into the PRO14 and the loss of sponsorships.
In November last year, South Africa looked set to beat France, Italy and Ireland for the rights to host the 2023 World Cup.
However, World Rugby’s Council opted to overturn a recommendation that South Africa should host the tournament and instead voted for France to host the tournament in a secret ballot.
CORRECTION: It was initially incorrectly reported that SA Rugby had suffered a net loss of R62 million during 2017. SA Rugby on Wednesday stressed that it suffered a R33 million loss in 2017. The SA Rugby Group (including subsidiaries) however did suffer a R62 million net loss.