Small deficit a 'major achievement' says SA Rugby

After an "extraordinarily challenging" financial year, the South African Rugby Union reported a small deficit of R6.8m (before taxation) in 2023.

Union members were briefed on the financial situation for last year at the annual general meeting of SA Rugby, held in Cape Town on Thursday.

Rian Oberholzer, CEO of SA Rugby, described the result as a "major achievement" considering the significant losses other national unions around the globe had suffered.

A sizeable 38% of annual union revenue of R1.35bn was expended on the investment in participating in the Vodacom United Rugby Championship and European Professional Club Rugby (EPCR) competitions (R385m), and the ultimately successful Rugby World Cup campaign (R133m).

Other Springbok and national team activities (R326m), securing player image rights and local insurance (R124m) accounted for 33%, while the R347m distribution to member unions was 25% of income.

The escalating costs arrived in a year in which revenues traditionally declined. A reduction in the Springbok fixture programme resulted in a 7% decrease in group revenues from R1.54bn in 2022 to R1.44bn.

"It was an extraordinarily challenging financial year," said Oberholzer, "and to achieve the outcomes we did, both on and off the field, was a major achievement."

"Income declines in Rugby World Cup years while costs go up and, for the first time, that challenge was compounded by the fact that we continue to invest in northern hemisphere participation.

The non-participation in the traditional inbound and outbound series and a truncated Castle Lager Rugby Championship impacted revenue. The contractual commitment towards Rugby World Cup player and management win bonuses increased team costs, although the impact was