The South African Rugby League has released their “Industry Financial Impact Plan”. The IFIP will be dedicated to ensuring the overall protection of SA Rugby, which means coaching staff and players taking a significant pay cut. This decision follows after Executives, and Team Personnel from all outfits in SA Rugby held large delegations. They determined collectively; this was the best method for sports security. It should be noted that players were involved with these delegations as well.
Details in the reduced payments for players, tournament cancellations, and revilement to operational budgets were provided. SAFL Executives mentioned that 49% in savings was acquired through terminated competitions. An additional 37% in the operational costs was saved from respective cuts during COVID-19. When it applies to players, they’ll receive a 10% reduction in salaries. Those funds will be placed towards future costs associated with operating SA Rugby.
The South African Bodies that formulated this agreement include the SAFL, SA Players Representative Organization, South African Rugby Employers Organization, and Sports Employees Unite Union. These governing bodies protect the rights of South African players that compete in national or international rugby. It should be noted that Salary Cuts account for 25% when adding the additional savings earned from cuts with team personnel, coaching staff, and SAFL Employees. There are rumours that these respective pay cuts could increase before the pandemic is concluded, accounting for 43% of the SAFLs savings.
Sentiments from SAFLs CEO
The SAFL CEO remarked that obtaining this agreement was challenging. It required the involvement of multiple organizations, which under normal circumstances wouldn’t permit such extensive reductions in salaries. The SAFL accurately identified the financial burdens associated with COVID-19, noting that if these reductions weren’t allowed, South African Rugby wouldn’t be financially stable by 2022.
The Chief Executive Officer of the South African Rugby League finished his sentiments by noting their profitable strategies towards reopening. Roux revealed that they’d prepared actively towards SA Rugby restarting by August 2020, with various workshops and private training sessions being held with players. SAFL Players won’t be permitted to compete until the government ultimately approves the resuming of national sports.