Bulls rocked by financial crisis
Cape Town - The Blue Bulls are believed to be in major financial strife.
Afrikaans website Netwerk24 reported on Sunday that the union’s professional arm, the Blue Bulls Company (Pty) Ltd (BBC), is struggling to keep head above water.
According to the report, Gert Wessels - who is the president of the amateur arm, the Blue Bulls Rugby Union (BBRU) - allegedly made several unauthorised loan transfers from the union’s funds to the BBC, but the payments appear to be in arrears.
The report further states that the BBC is close to being declared bankrupt and is surviving on more loans and favours.
An initial loan worth R8.43 million from the BBRU to the BBC was supposed to be paid off by February 2017 but the professional arm has failed to do so.
The report further stated that the BBRU’s CEO, Eugene Hare, also approved an unauthorised loan of R5 million to the BBC. By doing this, the BBRU also signed a surety for R7.5 million of the BBC’s other outstanding debt.
The union’s clubs have now tabled a motion of no confidence in Wessels, which is led by Henri van Aswegen, vice-president of the BBRU.
There were indications of financial difficulties at the Bulls in 2017 when the union started with a retrenchment process, which saw five coaches lose their jobs.
The five retrenched employees - Tim Dlulane (team manager), Pine Pienaar (defence coach), Nqubeko Zulu (under-21 team manager), Dewey Swartbooi and Denzil Frans (both coaches of the under-19 team) - subsequently opted to take the matter to court after a Commission for Conciliation, Mediation and Arbitration (CCMA) hearing failed to reach a favourable outcome.
READ the full story on Netwerk24