The Western Province Rugby Football Union confirmed on Monday that it "had applied for, and obtained, an order for the provisional liquidation" of Western Province Rugby Ltd., in which it is a 75% shareholder, according to SUPERSPORT. WPRFU President Thelo Wakefield and Group CEO Paul Zacks said that the organization had retained expert legal and accounting advice and had "fully explored all options before applying for liquidation of its commercial trading entity." Explaining the reasons behind the decision, Wakefield said, "The reality is that WP Rugby Ltd. has been forced to deal with a worsening financial position in recent years" (SUPERSPORT, 11/7). MONEYWEB reported Wakefield said that the union "will not be affected" as it is independent of WP Rugby PTY. Wakefield added that "the reality is that WP Rugby PTY has been forced to deal with a worsening financial situation for years now." He blamed "a smaller sponsorship pool, a confused Super Rugby format, as well as declining gate and season ticket sales as some of the contributing factors impeding the financial sustainability of the union." But, he said, the tipping point had been "the complex legal issues with one partner in particular -- Aerios -- over the last year." On the question of debt, Wakefield said, "All current liabilities have been settled and all staff and players have been paid" (MONEYWEB, 11/7).
