Top rugby administrator warns against current management model
During a Blue Bulls Rugby Trust fundraising dinner, Dr Johan van Zyl criticised South African rugby’s governance model as unsustainable.
The Blue Bulls Rugby Trust (BBRT), which supports former Blue Bulls players in need, hosted a gala dinner in Centurion last week.
According to Pretoria Rekord, the dinner aimed to raise money for the trust and pay tribute to legendary Blue Bulls lock and oldest living Springbok, Frik du Preez, who turns 90 today.
Du Preez absent due to wife’s health
Unfortunately, Du Preez, who is also the patron of the BBRT, was unable to attend the event due to a setback in his wife’s health.
However, guests did not stay disappointed for long, as guest speaker Dr Johan van Zyl, the co-CEO of African Rainbow Capital (ARC), which is one of the controlling shareholders in the Blue Bulls Company (BBCo), delivered a thought-provoking speech.
‘Current rugby model not sustainable’
Van Zyl told guests that the current governance model for professional rugby in South Africa is not working and is unsustainable in the long term.
He cited the Bulls’ experience as proof of this. Despite being South Africa’s best-performing team since joining the United Rugby Championship in the 2021/2022 season — reaching three of four finals and hosting one — the Bulls’ participation still resulted in financial losses for BBCo.
According to Van Zyl, the Bulls cannot operate profitably under the current structure, forcing the two shareholders, ARC and Remgro, to contribute up to R20m annually to keep Loftus Versfeld open.
Criticism of Saru and call for reform
Van Zyl also criticised the South African Rugby Union (Saru) for not doing enough to support the franchises, despite them being the main contributors to Saru’s income and the source of players who build the Springbok brand.
He claimed that although South Africa has won two consecutive Rugby World Cups, Saru has not leveraged this success to properly reward the franchises.
Van Zyl said new ways must be found to generate revenue from existing assets — not only from the Bulls, but also from Loftus Versfeld and their soccer partner, Mamelodi Sundowns.
Partnership key to ARC’s investment
According to Van Zyl, the partnership between the Bulls and Mamelodi Sundowns is the main reason ARC still finds investing in rugby worthwhile.
ARC owns 37% of BBCo and co-manages it with Remgro (37%) and the Blue Bulls Rugby Union (26%). The company also holds a controlling stake in Mamelodi Sundowns, who share Loftus Versfeld as their home ground.
Successful fundraising effort
Besides reconnecting old teammates and supporters, the dinner proved a success financially. An auction of memorabilia raised a substantial sum, while ARC and other sponsors and partners of the Blue Bulls made generous contributions.
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