Kings: First liquidation shots fired
The players organisation, MyPlayers, confirmed that an application for liquidation was brought – through their trade union SARPA – against the EP Rugby (Pty) Ltd.
This move comes after lengthy consultations with the various stakeholders concerned as well as the exploration of all legal options available.
It follows in the wake of confirmation that EP Rugby last week reached an agreement with 18 players (who did not receive Super Rugby contracts) over outstanding salaries.
EP Rugby needs to come up with ZAR5-milliion by Sunday, January 31, or they will also face a liquidation application from the lawyer of the aforementioned players – Craig Jessop, a labour lawyer working for the firm Brown Braude and Vlok.
This move forced MyPlayers and SARPA's hand.
Eugene Henning, Managing Director of MyPlayers, confirmed to rugby365 that they brought the action on behalf of the remaining players – those with and without Super Rugby contracts – who are still owed money by EP Rugby.
It is to ensure that some players are not favoured if cash becomes available in the ongoing financial crisis at the Eastern Cape franchise.
EP Rugby had 40-odd players on their books when they ran into financial difficulty last year and have been unable to pay the salaries of players and staff since September.
"Due to the ongoing financial position of EP Rugby and the reality of settlement agreements being entered into with certain creditors, the players had no option but to bring this application against their employers", Henning said in a statement.
"It was always the intention of the organisation to find a balance between the interests of the players and those of rugby in South Africa," he added.
"Litigation was not necessarily the first choice, but the recent preferential treatment of creditors gave us no option but to bring an application for liquidation.
"The severe hardship of players over the past few months has been well documented and the least we can do as an organisation is to ensure their rights are protected and executed on."
The EPRU President and EP Rugby boss, Watson, said they had "constructive talks" with MyPlayers on Thursday, before the liquidation application was brought.
"We understand the legal reasoning as to why this decision was taken by the players and will seek an opinion on how best we will approach this matter," Watson said in a statement.
"We will, however, continue to have discussions with SARPA on this issue as well as the relevant stakeholders on how best to resolve the situation," Watson concluded.
* Meanwhile SA Rugby, who now controls the Super Rugby franchise, said the operations and participation of the Southern Kings in Super Rugby would be unaffected by the application to liquidate EP Rugby.
"This action has no implications for the preparations or participation of the Southern Kings in Super Rugby," said Jurie Roux, CEO of SA Rugby – a man who himself is fighting a few legal fires at the moment.
"That entity is wholly owned by the South African Rugby Union and the players, coaches and management team will continue with their work as has been planned," Roux added.
"They kick off against the Sharks at the Nelson Mandela Bay Stadium on February 27 and that, and the rest of their fixtures, are unaffected."
Roux said that the court action could have implications for domestic rugby in the Eastern Province however.
"There will be questions about what this means for the EP Kings in the Currie Cup and for the administration of amateur rugby in the Eastern Province," said Roux.
"We have also been asked if SA Rugby will be 'taking over'.
"Constitutionally, SA Rugby can only become involved in the administration of a union if it is invited in, or if a union fails to put in place recommended corrective measures.
"But, in the first instance, the Eastern Province Rugby Union, as the sole shareholder in EP Rugby (Pty) Ltd, will have to address the court action before anything else can happen."
By Jan de Koning
@King365ed
@rugby365com
