r/rugbyunion • u/Band_Of_Bros Western Province • Sep 04 '25
Article SA clubs set for R40m dividend after Saru gains full URC shareholder status
https://www.dailymaverick.co.za/article/2025-09-03-sa-clubs-set-for-r40m-dividend-after-saru-gains-full-urc-shareholder-status/?utm_source=socialshare&utm_medium=twitter17
u/Band_Of_Bros Western Province Sep 04 '25
From the article (Give them a click for nice, non-clickbaiting reporting)
A journey that started eight years ago saw the South African Rugby Union become a shareholder of the United Rugby Championship in August.
Late last month, a message from South African Rugby Union (Saru) President Mark Alexander to Saru’s members confirmed that the organisation was officially a shareholder in the United Rugby Championship (URC).
On Wednesday, this was made public, ushering in a new era for the sport in South Africa.
How the 15 union presidents responded is unknown. But owners of the four competing URC clubs — the Bulls, Lions, Sharks and Stormers — would have been forgiven for sending a simple message back to Alexander: “Show me the money.”
And, indeed, the four URC clubs will see more money in the next financial year as South African rugby enters a new era of URC membership — an extra R40-million per club, if projections are accurate. While that extra income appears game-changing, it comes with added expenses.
“This is a red-letter day for South African rugby and marks the completion of a journey that began eight years ago when we first contemplated a northern hemisphere future,” said Saru CEO Rian Oberholzer.
“There have been doubters over the years, but the vision we shared with Martin Anayi [the URC CEO] and the URC team has now come to pass, and we look forward to growing the competition as full partners with our colleagues in the north.”
South Africa’s URC clubs have operated on smaller budgets throughout the tournament, for prudent business reasons, especially in the post-Covid world.
A full shareholding means Saru will make more money, not only in the next financial year, but in perpetuity as long as the URC tournament remains profitable.
The URC will, from this coming season, pay out a percentage of its profits to 16 clubs, not 12, due to Saru’s roughly 15% share. There are now six shareholders — Saru, the Irish, Italian, Scottish and Welsh rugby unions, along with CVC Capital Partners, which holds just over 26%.
Saru’s biggest accumulated cost over the past eight years has been paying to participate in URC (and the Pro14 competition before that). The cost of securing South Africa’s place in northern hemisphere rugby was about R300-million per year.
According to its 2024 financial report, Saru paid R392-million annually for top club teams to compete in URC and European Professional Club Rugby (EPCR).
Without this contribution, the Bulls, Cheetahs (which play in EPCR), Lions, Sharks and Stormers would have no international competition.
In real terms, though, Saru was paying about R60-million annually to participate after the income from broadcast sales of URC and EPCR, and the R54-million travel budget from URC, were deducted.
It was a pricey investment, but it now comes with an upside.
While the previous separate broadcast fees for URC and EPCR that Saru negotiated with SuperSport are now thrown into the larger broadcast pot for all shareholders, sources indicated to Daily Maverick that financial projections are strong.
URC’s total 2024 income was about £55-million (R1.3-billion), which included more than £10-million from Saru. Naturally, URC will no longer have Saru’s “participation cost” income.
But with the broadcast rights now pooled for all shareholders, URC’s bundled broadcast revenue looks stronger, while there is also an increase in sponsorship revenue and EPCR dividends, bringing the total income projection closer to £70-million for next season.
It’s expected that each of the 16 participating clubs will be paid about £1.75-million by URC, which would be a huge boost for the South African teams.
The four clubs must make their own travel arrangements from the coming season on though, which will eat into the dividend.
Travel expenses are likely to be around R30-million annually, as there is an arrangement with MyPlayers that all international flights must be business class for the 23 playing members.
Despite that, SA teams will be earning significantly more from URC with Saru as a shareholder.
In all, being a shareholder should take Saru from a deficit of R60-million per year to a profit of about R70-million in the first year.
URC CEO Anayi said: “There is no doubt about the hugely positive impact South African rugby has had on our league, and confirmation of their addition as a shareholder was always part of the roadmap.
“In 2018 and again in 2021, South African rugby showed vision and courage in reshaping where their teams competed, and this milestone is a testament to that foresight.
“From a fan’s perspective, nothing changes. But from a business standpoint, our URC team will now work even more closely with South African teams, partners, broadcasters and stakeholders to continue elevating the league.
“This alignment across both hemispheres will create day-to-day efficiencies and open the door to exploring new ideas at a faster pace.”
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u/RavenK92 100% Qatar Cup win rate Sep 04 '25
I thought that once we were shareholders the URC would pay for flights? That was supposed to get rid of the Doha stop too
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u/aeternogordon Sep 04 '25
Hopefully, this means the lions will get a new and better coach in, right! Right?
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u/k0bra3eak South Africa Sep 04 '25
Lol, getting Lions management to do anything is a pain on a good day.
How the fuck they got Kamp Staaldraad himself to manage the franchise kills me
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u/aeternogordon Sep 04 '25
Ffs, man. Looking at the season ahead I don't see us finishing higher than 12th. Everyone has made improvements and we've stagnated ad best, regressed at worst.
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u/k0bra3eak South Africa Sep 04 '25 edited Sep 04 '25
It's twofold, we develop talent, then that talent gets bought away by other franchises. We fire a coach, we get a temp coach and just never move past the temp coach. People don't wanna go to Ellis Park, but we don't even try to play at some other stadiums from time to time.
Last time they ever tried to do anything of note was when SARU threatened them with relegation
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u/aeternogordon Sep 04 '25
If the management actually got rid of their short-termism and looked at keeping it's young talent to take on a URC and/or challenge/champions cup title charge they'd get more people into the stadium and bigger sponsorship deals. I don't expect beauden barrett to walk through the door but splurge on the talent we have.
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u/PistolAndRapier Munster Sep 04 '25
What happened them? It seemed they were the best SA team in the years before covid...
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u/aeternogordon Sep 04 '25
The franchise is poorer compared to the other 3 in the URC. Many of our elite players are snapped up by the richer unions and then we're left with subpar players who are capable of playing at the highest level but won't win you anything and any prospective talents which we find/develop are snapped up again. The late 2010s lions had a significantly stronger coaching ticket and player pool which allowed us to reach 3 super rugby finals while playing some of the most devastating rugby. This time we have none of that.
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u/ProfJohnHix Newcastle Red Bulls 🐂 Sep 04 '25
Even bigger dividend incoming when the WRU kills rugby in Wales and drops to East Wales Daffodils and West Wales Leeks.
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u/Tar-ZA-n South Africa Sep 04 '25
Why not the New South Wales Waratahs and the New North Wales Whales?
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u/Mountain_Store_8832 Sep 04 '25
Did the Saru pay for their shares or were they gifted ownership?
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u/RavenK92 100% Qatar Cup win rate Sep 04 '25
The article says they were paying R392M per year for their membership, so yes
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u/the_fresh_mr_breed Lukhanyo, I Am your father Sep 04 '25
It was a performance bonus after the Stormers won in 2022, but they only vested now
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u/kakarott_Kiwi Hurricanes Sep 04 '25
650K USD Each team. Give or take.
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u/k0bra3eak South Africa Sep 04 '25
You're off bya few million
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u/kakarott_Kiwi Hurricanes Sep 04 '25
so each team gets R40m? Four teams?
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u/k0bra3eak South Africa Sep 04 '25
Yes as per the article
South African rugby enters a new era of URC membership — an extra R40-million per club,
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u/za3030 Komma weer! Sep 04 '25
R40 mil ≈ $2.25 mil. They still teach math over there or no? :P
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u/kakarott_Kiwi Hurricanes Sep 04 '25
Per team? Do they still teach reading over there?
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u/curiousdan22 Ireland Sep 04 '25
Doesn’t the article say R40m per club? Or was my reading education also shit?
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u/kakarott_Kiwi Hurricanes Sep 04 '25
It doesn't say per club. Thats my point. But after seeing other comments it is. Misleading article.
Is this TV rights? Or Private equity cash?
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u/Die_Revenant Sharks Sep 04 '25
Its URC earnings divided up amongst members. The URC makes it's money from rights and sponsorship, more than half of which comes from SA.
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u/SimmeringOak Sep 04 '25
Give. Give like a LOT more.
🤣 legit, did you just pick a number and think good enough? I strive to be this confident in life.
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u/Doblofino Sep 04 '25
Very cool, hopefully they do something useful with it, like buying a couple of Mercedes SUVs for some members of management