No bail for cash-strapped Falcons

Rudy Joubert - hasn't been paid in three months

SA Rugby (Pty) Ltd, the commercial arm of the South African Rugby Union (SARU), will not be bailing the Falcons out of potential bankruptcy unless the ailing union can come up with a sustainable repayment plan.

It was revealed on Monday that the Falcons have not paid any of their players for the months of November and December in an attempt to avoid bankruptcy.

The union are likely to lose the majority of their players should they be declared insolvent.

Speaking from a global rugby forum - that includes all stakeholders from all areas of the game - in Woking, England, SA Rugby (Pty) Ltd. Managing Director, Jonathan Stones, revealed that they had been in discussions with the Falcons to resolve the matter.

"We have been in discussions with the Falcons about their request for financial assistance," Stones told rugby365.com.

"Unfortunately the facts are that we can't just hand out loans to the unions. They have to be made in a sustainable manner, which means that there are conditions attached to the loaning of money.

"These have been discussed with [Falcons president] Rautie Rautenbach.

"[SA Rugby's] methodology is to assist where we can, but we do have a responsibility to our shareholders to make sure that we don't waste their money. There are conditions that have to be met before we can consider giving a union financial aid.

"We need to sit down with them and see what their plans are going forward because ultimately we want them to be in a position to pay us back at some stage," he added.

Stones also said that the Falcons had been assisted financially in the past, but added that the commercial arm of SARU should only be seen as a "bank of last resort."

Stones' view was backed by Falcons coach Rudy Joubert.

"The smaller unions really have to manage their stuff better," Joubert told this website. "They can't expect SA Rugby to bail them out all the time."

Joubert, who has not been paid in the last three months, also informed this website that although the Falcons were training hard in their pre-season, they have now taken a break to see what transpires.

"If they go under we'll all be affected. The board of directors are meeting to try and see if they can avoid this happening."

By Gareth Green