Good news for Western Province as administration is lifted

An unfortunate period in the history of South African rugby has come to a happy end with the news that Western Province will no longer be under administration.

In a statement, the South African Rugby Union (SARU) said its Executive Council has advised the administrator of the Western Province Rugby Football Union (WPRFU) to wind up the Union’s period of administration.

The decision clears the way for the union to hold elections and will restore its full voting rights once the process is complete. That process is expected to be completed by June 2025.

The decision was taken in acknowledgement of the union’s financial stability following the conclusion of a private equity investment in the commercial arm of the Union.

The sale of the Newlands rugby stadium remains to be completed, but the Exco determined that it was a function that the Union could perform.

The WPRFU was placed in administration in October 2021 in response to the severe challenges faced by the Union.

The decision was taken according to the provisions of clause 29 of the constitution of SARU which require that unions “conduct their business affairs in such a way that, at all times, they are in a sound financial position, comply with the laws of the Republic and adhere to the requirements of good governance”.

Under SARU administration, the administrator was tasked to continue with the Union’s process to conclude a private equity deal for the Union, complete the move to the DHL Stadium and manage the sale of the Newlands stadium and other owned properties.

The first two responsibilities have been successfully discharged and the proposal relating to the sale of certain properties, including Newlands rugby stadium, would now be the Union’s sole responsibility.

“Both the Union and the Stormers (Pty) Ltd commercial entity are now in a stable financial position,” said SARU. “The Exco determined it would be unreasonable to continue with administration and the administrator was instructed to return control to the member.

“The union was placed in administration when it was in a dire financial position and its standards of governance were in disarray. That is no longer the case and to continue with administration was viewed as being unreasonable.”

Note — the equity transaction and the sale of Newlands and other properties required or require the approval of the Western Province clubs. The presented equity deal was approved, however a proposal to sell the properties was rejected by the clubs on June 10, 2024.