A consortium of more than 10 Free State businessmen has pulled the Cheetahs back from the brink of financial collapse.
According to Rapport, before the group’s intervention, the Free State Rugby Union was battling severe financial strain, with debts running into millions. At one stage, the union had to borrow money simply to meet salary commitments.
Since stepping in, the consortium has focused on restoring liquidity and long-term stability at Free State Stadium. A chief financial officer – appointed at the businessmen’s insistence – has worked closely with CEO Rory Duncan over the past year to stabilise operations off the field.
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“We are currently in year two of a five-year process to secure the Cheetahs’ future and improve the financial health of the union,” a consortium spokesperson said.
“SA Rugby’s current financial model is not sustainable for unions. Everyone is suffering losses. As with the other franchises, private investment is the only way to survive.”
Seasoned administrator Duncan was this week announced as the Sharks’ new chief of staff and will return to Durban when he finishes up in June with the Cheetahs.
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The consortium is also exploring participation in new international competitions and the possibility of hosting a Springbok Test at Free State Stadium, which has been upgraded to meet requirements to host Test matches again.
A year ago it was reported that the venue was downgraded to a Class C venue by SA Rugby and therefore unlikely to host high-profile international games.
The post Cheetahs rescued from financial ruin appeared first on SA Rugby magazine.
