South African Rugby has announced significant pay cuts in its efforts to save up to 1.2 billion rand ($62 million) from its budget for a year in which rugby fixtures have been severely affected by the COVID-19 pandemic.
Jurie Roux, chief executive of SA Rugby, said the sport’s salary bill for employees, players and officials had been reduced by 25 percent, with those on the highest pay scales losing up to 43 percent of their income. Those earning less than 20,000 rand (about $1,025) a month would not be affected. Some players opted to cancel their contracts after being given a window which expired on Thursday.
SA Rugby did not reveal how many players had taken this option but Springbok hooker Malcolm Marx is among them, according to local reports.
Springbok winger Makazole Mapimpi, who scored South Africa”s first try in their World Cup final win over England last year, reportedly turned down a 9 million yen ($460,000) a year offer from Japanese club NTT Docomo Red Hurricanes. He will now lose at least one-quarter of his salary as rugby officials try to better balance the books.
The announcement of planned savings came after it was announced that home international matches against Scotland and Georgia in July had been postponed because of the pandemic.
According to a SA Rugby statement, the pay cuts make up 13 percent of the planned savings, with the bulk coming from the cancellation of competitions and other operational budgets.
The statement read: “The economies will be achieved by reduced expenditure following the cancellation of competitions (49.7 percent of savings), cuts in other operational budgets (37.3 percent) and in salary reductions (13 percent).
“The plan was formulated and agreed by bodies representing SA Rugby, MyPlayers (the players’ representative organization), Sport Employees’ Unite (employees’ trade union) and the South African Rugby Employers’ Organisation (SAREO – representing the provincial unions).
“The salary cuts amount to 25 percent of total remuneration across the industry, including all employees, players and officials – although persons earning below R20,000 per month were exempted from any cuts. Higher earners have agreed to cuts on a sliding scale of up to 43 percent.”
SA Rugby CEO Jurie Roux added: “It was a complex process to find alignment with a number of entities representing 1,396 people in the South African rugby industry but throughout everyone collaborated fully.
“The group identified our collective areas of financial risk and what savings had to be made and then identified a plan to mitigate those risks. It has meant salary cuts for many, but we have put together a plan that will ensure the industry will be positioned and resourced to get straight back to action just as soon as we are permitted.
“From the moment we went into lockdown we have been preparing and workshopping internal guidelines and protocols for return to play and return to work. Those are complete and are ready to be actioned as soon as we get Government’s go-ahead.
“We have presented our case to the Minister of Sports, Arts and Culture and believe we have a strong case. We do not run hospitals or build ventilators and we are not an industry that is critical to the South African economy, but we do believe that we add huge value to national life in other ways.
“The sight of the Springboks running out for the first time since winning the Rugby World Cup would be a powerful milestone on the nation’s journey to the other side of this crisis as well as being a boost for national morale.
“While the return to play of our provincial teams – even if it is behind closed doors – would similarly be hugely beneficial to a nation in lockdown. We understand that there are bigger agendas at play but believe the risk of transmission could be well managed by our protocols. We trust the minister and Government will view our case seriously.”
The Industry Savings Plan came into effect on May 1 and is initially scheduled to run until the end of December.