Southern Spears

6 April 2005 Presentation in Newlands by 6 interested Bidders, including SEC Super 14 (Now known as the Southern Spears) to SA Rugby. SEC Super 14 Bid Presentation contains detailed budget of R14m & sponsorship of R50m over 5 years.

15 April 2005 Adjudication Panel (Norman Arendse, Derrick Minnie & Dan Moyo) issues recommendations – resulting in a stand off between the Central Free State Union and the Southern & Eastern Cape, as both desired to be the preferred bidder. A settlement, or compromise was achieved in that it was understood that the Cheetahs would be promoted and the Southern & Eastern Cape Super 14 franchise would stand down, and essentially place them in a holding pattern for 18 months and then be entrenched in the 2007 and 2008 Super 14 series. This action cancelled a SEC Super 14 confirmed sponsorship of R10m pa for 5 years (R50m), ex Vodacom who required participation in the 2006 Super 14 Series, which sponsorship then rolled over to the Cheetahs. This “settlement” stripped the financial viability of the SEC Super 14 bid, however SA Rugby pledged to financially support the SEC Super 14 franchise and procure sponsorships for the 2006 season as detailed in the unanimous Presidents Council Resolution declared on the 8th June 2005 as follows:

On the 8th June 2005 following a SA Rugby Presidents Council unanimous decision, SA Rugby issued a Media Statement and Release:

“The parties present at the SA Rugby President's Council meeting held on 8 June 2005 at the Intercontinental Sandton Sun agreed the following in respect of the franchise system in South Africa for the Super 14 Competition.

1. That a formal legal agreement shall be drafted immediately confirming what was agreed regarding the Super 14 franchise system in South Africa.

2. The South Eastern (SE) Cape Franchise shall be financially supported by SA RUGBY / SARU in respect of their development during 2006. In light thereof SA RUGBY / SARU must procure sponsorships for the SE Cape Franchise for the 2006 season.

3. The SE Cape franchise shall be entrenched in the Super 14 Competition for the 2007 & 2008 rugby seasons.

4. The South African team finishing at the bottom of the log in 2006, will automatically be replaced by the SE Cape for the 2007 season.

5. At the end of the 2007 Super 14 season, the South African franchise team, which is last on the Super 14 log, excluding the SE Cape, shall play in a promotion relegation match against the franchise team who did not play in the 2007 Super 14 competition.

6. That the decision which was taken at the meeting on 15 April 2005 in respect of the South African franchise system, are hereby amended in order to reflect the above agreement.

7. That the Falcons Rugby Union will form part of the Blue Bulls franchise.

8. SA RUGBY shall within 21 days as from 8 June 2005, compile a "White Paper" in respect of the total SA RUGBY'S competition structure”.

29 July 2005 SA Rugby 2005-2010 White Paper – Author: Dolf van Huyssteen

29 August 2005 Appointment of Peter de Villiers as Head Coach

9 September 2005 Revised SA Rugby 2005-2010 White Paper – Author: Dolf van Huyssteen

15 November 2005 Appointment of Tony McKeever as CEO

2 December 2005 Ratification by SA Rugby Board of President’s Council 8th June 2005 Resolution

12 December 2005 Distribution of draft Franchise Participation Agreement to 6 Franchises

December 2005 Spears Signs Media Partner AlgoaFM

December 2005 Spears Signs Apparel Sponsor - ISC

12 January 2006 2nd Draft of Franchise Participation Agreement

15 January 2006 Meeting of 6 Super 14 Franchise Coaches with SA Rugby, headed by National Coach and Selectors

16 January 2006 Meeting of 6 Super 14 Franchise Coaches & CEO’s with SA Rugby

2 February 2006 SA Rugby meeting with 6 Franchise CEO’s at Newlands for signing of Franchise Participation Agreement

7 February 2006 Signing of Franchise Participation Agreement by Spears

10 February 2006 Deadline date for signing of Franchise Participation Agreement by all 6 Franchises as required by SA Rugby with regards to signed agreements with SANZAR, Newscorp and Vodacom

24 March 2006 President’s Council recommendation to SA Rugby Board to rescind 8 June 2005 resolution – REQUIRES 30 Day Notice, which did not happen

28 March 2006 Invitation by SA Rugby to Spears to debrief SA Rugby Board

29 March 2006 SA Rugby Board Approval of 2nd December 2005 Minutes which includes the Ratification of the 8th June 2005 Presidents Council Resolution

29 March 2006 Debriefing at SA Rugby to Board at 14:00

31 March 2006 SA Rugby Board delegation meet with Spears at 08H00 in Port Elizabeth at Spears offices – Southern Spears tables a “remedy” to SA Rugby through till 2007.

31 March 2006 Press Conference at 12H00 in Spears Board Room

5 April 2006 Meeting with SA Rugby’s CEO & GM Legal Affairs to provide copies of player agreements, sponsorships and budgets.

18 April 2006 Meeting with SA Rugby Board to hand over report from the Southern Spears to SA Rugby.

Southern Spears Position on the 8th June Presidents Council resolution and subsequent developments and initiatives:

1) SA Rugby through its Presidents Council and SA Rugby Board have issued media statements, that have ratified, approved as well as included the Southern Spears in a 2005-201 Competitions document, FIVE times, obligating SA Rugby to perform.

2) Legal Agreement: The formal legal agreement identified in Point One of the Presidents Council resolution above, was articulated in a definitive legal Franchise Participation Agreement, issued by SA Rugby and distributed to all 6 Franchises on the 12th December 2005.

3) Franchise Participation Agreement Obligations: The Southern Spears, as one of the 6 franchises registered some of its concerns and duly signed the amended franchise participation agreement on the 7th February, 3 days before the start of the Super 14 series, as SA Rugby has signed SANZAR, broadcast and sponsor agreements, which requires that SA Rugby has signed participation agreements, otherwise it places SA Rugby in breach of contract with these three entities and leaves SA Rugby open for a damages claim.

4) Sponsors: The Southern Spears proceeded with the acquisition and securing of 2 significant commercial sponsors and entered into 3 year contractual obligations, resulting from the 8th June 2005 Presidents Council resolution.

5) Development & Transformation: The Southern Spears, grouped the Presidents, CEO’s and Coaches of Border, Eastern Province and South Western Districts together in a meeting, on Friday the 3rd February, to agree on a regional development and growth strategy for the future, with the creation of five Elite Spears Youth Squads of 30 players in 5 Age Groups, in each Province, ranging from U-13, U-16, U-18, U-19 and U-21.

6) Funding: In Point 2 of the 8th June 2005 Presidents Council resolution it stated, “The South Eastern (SE) Cape Franchise shall be financially supported by SA RUGBY / SARU in respect of their development during 2006. In light thereof SA RUGBY / SARU must procure sponsorships for the SE Cape Franchise for the 2006 season”. Not a single sponsor has been secured by SA Rugby, for the Southern Spears, instead, an amount of R5 million, of the required R12 million for 2006, tabled on the 6th April, has been made available by SA Rugby, as a draw down facility.

7) Southern Spears Preparatory Games: The Presidents Council determined that the SEC Super 14 Franchise, now known as the Southern Spears, would play games against Argentina, Tonga, Fiji & Samoa, as well as warm up games in January 2006 against the Cheetahs, Cats and Stormers. The Southern Spears arranged and embarked on a schedule of 5 games, to promote the game of rugby in Africa, as well as with the new Western Australia franchise, the Western Force. These were arranged against Kenya, for the 18th and 25th February in George and Port Elizabeth, with an Away game in Nairobi on the 4th March. This was then followed up by 2 away games against Namibia on the 24th and 31st March 2006, to assist them in their qualification for the 2007 World Cup.

Thereafter, the Southern Spears established 5 games against the Western Force once they play their final game in Durban on the 12th May. The Spears Home game will be between the Western Force and the

Southern Spears, with two Away Games in Perth at the Members Equity Stadium on the 2nd and 9th June and the 14th & 17th June in Port Elizabeth, with a 5th game against an Invitational XV, to develop Bilateral Sporting, Economic and Cultural ties between Perth and Port Elizabeth and Western Australia and the Eastern Cape. Thereafter, the first Log Points and Competition starts for the Southern Spears on the 24th June when they play Free State in the Currie Cup in the Premier Division, the same day that South Africa plays France at Newlands. It is requested that SA Rugby underwrites these preparatory games.

8) Government: The Southern Spears has embarked on participation and alliance agreements with the Department of Sports, Arts & Culture, and the Nelson Mandela Metropolitan Municipality in the Eastern Cape, as well as the Eastern Cape Academy of Sports and maintains regular contact with the South African Ministry of Sport and Western Australia Ministry of Sports, Arts & Culture.

9) Advisory Board: The Southern Spears is proceeding with the creation of a Southern Spears Advisory Board comprising of suitably qualified leaders in rugby, business and government, drawn from each of the three Unions of Border, Eastern Province and South Western Districts.

10) The Southern Spears views the 8th June 2005 Presidents Council legal and binding on SA Rugby, as it set in motion a sequence of events and obligations for the years 2006-2008, with players contracts and sponsors. Any deviation from this by SA Rugby, will result in multiple damages claims of millions of Rands, from players and sponsors. As a result of the ensuing negativity surrounding SA Rugby’s prolonged report on the Southern Spears, the Southern Spears have been severely prejudiced in their day-to-day administration, already suffering damages that have had a negative economic impact on the Spears.

The Southern Spears has been forged out of the toughest times within South African rugby and can together with SA Rugby today, following the President’s Council resolution taken on the 8th June 2005, whose mandate it was to instil in South Africa, a system that will accelerate development and transformation in rugby in and throughout South Africa, collaborate and work with SA Rugby to attain these objectives.


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