Zelt Marais, deposed president of Western Province Rugby, has raised concerns about financial mismanagement in South African rugby. In an interview, he criticized SARU’s undervalued equity deal and lack of transparency, while calling for government intervention to protect community clubs and ensure the sport’s sustainable future.
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BizNews Reporter ___STEADY_PAYWALL___
In a recent interview on BizNews Briefing with Alec Hogg, Zelt Marais, deposed president of Western Province Rugby, shed light on the deep-rooted issues plaguing South African rugby governance. Marais, who has been embroiled in various controversies surrounding professional rugby in South Africa, passionately voiced concerns about financial mismanagement, lack of transparency, and the exclusion of community clubs in the decision-making processes of major rugby bodies like the South African Rugby Union (SARU).
The US Equity Deal Controversy
One of the major issues Marais highlighted was the questionable deal between SARU and a US-based private equity firm, MVM Holdings. The deal, which handed the US group a 20% stake in South African rugby’s commercial rights for a reported R1.3 billion ($75 million), raised alarms within the rugby community, including Marais. According to Marais, this deal significantly undervalues South African rugby, especially when compared to the New Zealand All Blacks’ partnership with Silver Lake, which valued the All Blacks’ commercial rights at a staggering $2.1 billion.
Marais referred to a recent exposĂ© in Business Day, which pointed out that the deal with the US firm was akin to a “fire sale,” suggesting that SARU had sold itself short by undervaluing its most valuable asset: the Springboks. Marais remarked, “The Springboks, with their storied history and global fan base, deserve a valuation that reflects their true value.” He argued that the deal’s terms could potentially harm the long-term sustainability of South African rugby.
A Call for Transparency and Governance Reforms
One of the most significant concerns Marais raised during the interview was the lack of transparency in SARU’s financial dealings. He described how critical decisions, such as the equity sale, were made without adequate consultation with key stakeholders like the unions and community rugby clubs, which are the backbone of South African rugby. Marais explained that these clubs play a crucial role in developing future rugby talent and supporting the sport at a grassroots level.
“We are robbing our community clubs of the funds they need to develop the sport,” Marais said, emphasizing the importance of reinvesting in the clubs to secure the future of South African rugby. He added that without proper investment and support for these clubs, the foundation of South African rugby could crumble, leading to long-term challenges for the national team and the sport as a whole.
Marais’ Personal Battle with SARU
Marais’ outspoken stance has not come without personal cost. He revealed that SARU had imposed a 10-year ban on him, accusing him of spreading “misinformation” after he raised concerns about the financial dealings and management of rugby funds. The ban, according to Marais, is unconstitutional and without merit. He described how SARU had tried to silence him for advocating for transparency and for standing up for the rights of the rugby clubs he represents.
In the interview, Marais pointed out that he had not personally profited from his position in rugby, and his only goal was to protect the interests of the clubs under his leadership. “As the elected president, I have a duty to stand up for our clubs,” Marais said, expressing his frustration with the SARU leadership for what he sees as their disregard for the voices of the rugby community.
A Broken System and Calls for Reform
Marais also criticized the governance structure within SARU, describing it as a system where a select few individuals make decisions without consulting the broader rugby community. He mentioned that key executives, including former SARU CEO Jurie Roux, continue to wield significant influence behind the scenes, even after leaving official positions. According to Marais, this lack of accountability and democratic governance is a major concern for the future of the sport.
During the interview, Hogg referenced a proposal from Warren Wheatley, founder of Altvest, which would allow rugby fans and former players to invest in South African rugby through private equity. This idea resonated with Marais, who mentioned that he had made a similar proposal over a decade ago, only to have it shut down by then-CEO of Western Province Rugby, Rob Wagner. Marais argued that such initiatives could provide a more sustainable and inclusive model for rugby, one that involves the public and the players themselves.
A Call for Government Intervention
As the interview progressed, Hogg asked Marais about the possibility of government intervention in resolving the ongoing governance crisis. Marais agreed that intervention from the Ministry of Sport might be necessary to bring about meaningful change. He expressed concern that SARU’s current leadership structure was too entrenched and resistant to reform. “We can’t carry on like this,” Marais said, adding that the government might need to step in to ensure transparency and accountability.
Marais also revealed that efforts to open dialogue with SARU’s leadership had been blocked. He shared that he had reached out to Jurie Roux in an attempt to engage in discussions, but Roux was reportedly denied permission to speak with him by SARU’s executive committee. This, according to Marais, is indicative of the opaque and exclusionary decision-making processes within SARU.
Looking Forward
Despite the challenges he faces, including the 10-year ban, Marais remains committed to fighting for transparency and better governance in South African rugby. He believes that without significant changes to how the sport is managed, South African rugby risks losing its foundation in community clubs, and by extension, its future as a global rugby powerhouse.
Marais’ warnings, once dismissed by some, are now gaining wider attention, and with growing media coverage and support from investigative journalists like Adrian Basson, the pressure on SARU to reform is mounting. Whether government intervention or structural changes within SARU can resolve the crisis remains to be seen, but one thing is clear: Zelt Marais is not backing down.
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