Rédaction Africa Links 24 with Craig Ray
Published on 2024-04-07 08:30:52
The recent uproar by South Africa’s leading rugby unions – the Bulls, Lions, Sharks, and Stormers – regarding the fees they have to pay to host Test matches has brought to light an ongoing issue in the country. This disagreement stems from the fee structure that was agreed upon by the unions themselves at a meeting of the South African Rugby Union’s (Saru’s) general council last year.
The fees, amounting to a total of R85 million for the six home Tests that the Springboks will play in 2024, are to be covered by the unions hosting the matches. This model of paying fees for hosting Tests is not new, and although the unions were initially on board with the idea, some have now raised concerns about the financial burden it places on them and the impact on ticket prices for fans.
The upcoming Tests against Ireland and the All Blacks are expected to generate significant revenue, with the most expensive seats for the Ellis Park Test set to cost close to R2,500 per ticket. Despite the complaints from the unions, the potential earnings from hosting these matches are substantial, with an estimated turnover of around R30 million for each union.
It is important to note that the Springboks belong to all of South Africa, and the fees collected from hosting Test matches are used to support smaller rugby unions across the country. Additionally, Saru provides financial support for various initiatives, such as covering the costs for South Africa’s premier teams to play in Europe and paying player insurance and image rights fees.
Saru President Mark Alexander defended the fee-paying model, emphasizing the revenue-generating potential of hosting Test matches and the support provided to the unions. He highlighted the unique structure in South Africa, where Tests are allocated to member unions to help boost revenue and commercialize their brands.
While the fees may lead to higher ticket prices for fans, the demand to watch the Springboks live has increased significantly since their success in the World Cup. This surge in popularity has allowed players to command higher salaries, and the costs associated with funding the games have also risen.
Ultimately, the financial aspect of hosting Test matches is a complex issue that involves balancing revenue generation, financial support for smaller unions, and providing fans with access to premium rugby contests. The ongoing discussions between Saru and the rugby unions will likely continue as they work to find a mutually beneficial solution for all parties involved.
Read the original article on Daily Maverick
