South Africa Rugby Announces 23.3M Rand Loss For Last Financial Year

Paying 60M rand more annually for player insurance and image rights as well as 336M rand to keep the 14 provincial unions "afloat" are two reasons South Africa Rugby announced a 23.3M rand loss in the last financial year, according to Craig Ray of TIMES LIVE. The organization made the announcement on Saturday after a "difficult year" that also saw it lose banking firm ABSA as a headline sponsor at the end of '15. SA Rugby maintained its support to the 14 member unions‚ which increased by 90% to 336M rand‚ "principally on the back of increased broadcast income‚" as group revenues rose 19.9% to 1.2B rand. Competition costs rose 46% to 155M rand, "while fees for player image rights and insurance increased almost fourfold" from 23.5M rand to 87.3M rand. The costs associated with national teams declined 4% to 197M rand‚ "attributable to performance related payments‚ while delivery of sponsors’ rights costs fell" 24% to 125M rand "due to a reduction in the size of the portfolio" (TIMES LIVE, 3/25).