SA RUGBY SOUTH AFRICAN RUGBY UNION ANNUAL REPORT 2016 REPORT UNION ANNUAL SOUTH AFRICAN RUGBY ANNUAL REPORT 2016 SA RUGBY ANNUAL REPORT 2016 CONTENTS SARU Sponsors 02 President’s Message 06 CEO’s Report 08 Integrated Report 12 Audit & Risk Committee 28 Operations & Finance 32 Financial Statements 34 Rugby Department 80 Strategic Performance Management 88 Commercial 92 Communications 98 Human Resources 104 All pictures courtesy of Gallo Images (www.galloimages.co.za) | Design: Ryan Manning ANNUAL REPORT 2016 | SOUTH AFRICAN RUGBY UNION | 01 2016 SA RUGBY ANNUAL REPORT SA Rugby Sponsors in 2016 TIER 1 SPONSORS ASSOCIATE SPONSORS OFFICIAL SUPPLIERS TOURNAMENT, REFEREE AND ASSOCIATE SPONSORS Springbok and DHL Stormers lock, Pieter-Steph du Toit, here in action in the Castle Lager Rugby Championship test match against Australia, was named SA Rugby’s Player of the Year for 2016. 02 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2016 ANNUAL REPORT 2016 | SOUTH AFRICAN RUGBY UNION | 03 VISION VALUES “To be the leading Rugby Nation, EXCELLENCE INCLUSIVITY INNOVatiON inspiring all South Africans” ETHICAL COLLABOratiON 108,941 FANS 16,639 COACHES REFEREES BokSmart 8th AT CAPE TOWN SEVENS BOKS 243,554 43,400 FANS CERTIFIED FOR BOOKS AT CURRIE CUP FINAL library 71 TRIES 28 TRIES FANS scored by THE conceded by THE OPENED AT LOCAL Emirates LIONS DHL Stormers IN VODACOM SUPER RUGBY, IN VODACOM SUPER RUGBY, BOK TEST THE MOst BY ANY TEAM JOINT-FEWest BY ANY TEAM 6 NEW 1,110,383 325 173 Facebook LIKES SPONSORS TRIES IN 39 TRIES IN 19 R1.2bn CURRIE CUP CURRIE CUP PREMIER DIVISION First DIVISION matches matches 485,994 ANNUAL 8 RENEWALS TWITTER followers @Springboks INCOME EXCEEDS R1bn 899 matches NEW PLAYERS THROUGH FOR FIRST TIME coded ON Stratus 170,000 GET INTO RUGBY KEY FIGURES All figures correct on 31 December 2016 “High performing people, processes and systems providing sustainable, well-governed, world-class innovative sporting MISSION STATEMENT entertainment to make South Africa the leading rugby nation” 04 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2016 ANNUAL REPORT 2016 | SOUTH AFRICAN RUGBY UNION | 05 PRESIDENT’S REPORT It was with great pride and humility that I took over If the year was generally a tough one on welcomed its first female member, Ilhaam Groe- the field for most of our teams – and an even newald, as another indicator that we are a sport as President of the South African Rugby Union tougher one off it in the commercial sphere – it that needs and wants to move with the times. ended on a high from a governance perspec- In addition, Vivian Lottering, the president of towards the end of October 2016, elected to suc- tive, I believe. the Valke, was elected as a new member fol- The General Council approved a number lowing the election of François Davids, an Exco ceed Oregan Hoskins who had stepped down in of constitutional amendments in December member, as the deputy president. that could pave the way for a root and branch Everything we do at SA Rugby is measured August after ten eventful years at the helm. overhaul of the way that rugby business is through the lens of transformation. Arguably conducted. the most deflating moment of the year was the A number of notable landmarks were Those issues could not simply be laid at the announcement by the Sports Minister in April achieved during his presidency with the winning door of the Springbok management. The stand- Key changes approved were: of his decision to withhold the right to bid for of the Rugby World Cup in 2007, a series victory ards of South African play in Vodacom Super › Permitting 74% shareholdings in commer- over the British & Irish Lions, the Tri-Nations title Rugby – with the honourable exception of the cial arms of rugby unions by private equity The General Council approved a and Sevens titles – including Commonwealth Emirates Lions – were not what we would ex- partners gold and an Olympic bronze medal. A number pect. In addition, the departure of South African › Increasing the make-up of the independent number of constitutional amendments of world age group titles were also won. players overseas has increased in pace against and player representation on the Executive in December that could pave the He brought stability and credibility to our the background of a weakening rand: in 2015 a Council to five independents with six elected organisation at a turbulent time on his first staggering 257 South Africans made top league members way for a root and branch overhaul election and brought consistency to the na- appearances for teams overseas. › Introducing new committees for franchise (Vo- of the way that rugby business tional coaching position: only three Springbok Part of our response was a series of coaching dacom Super Rugby) and non-franchise rugby coaches were appointed during his presidency indabas between the national management and to focus and streamline decision making is conducted. while there had been six appointments in the franchise coaches to reach an understanding › Moving responsibility for the appointment of previous decade. on how optimally to prepare our players at all the Springbok coach and CEO from the Gen- global mega-events following our failure to But there is no denying however that 2016 levels. We have prepared a coaching blueprint eral Council to the Executive Council reach agreed targets as part of our Strategic turned out to be the toughest and most disap- capturing a shared understanding on a South › Removing the selection committee while Transformation Plan. ABOVE: SA Rugby Presi- pointing year in the quarter of a century since African approach to the different phases of retaining a selection convenor to work with There was an immediate impact on the senti- dent, Mr Mark Alexander. rugby unity – both on and off the field. the game as well as the minimum conditioning national team coaches ment of corporate South Africa towards rugby OPPOSITE RIGHT: The The tone for our sport is always set by standards – an issue that has been repeatedly › Reducing the presidential roles from three as well as vastly complicating our desire to Emirates Lions played Springbok form and results and they were highlighted as a concern for national coaches to two by removing the vice presidency bring the multi-billion rand Rugby World Cup to attractive rugby to get to simply dreadful. Four victories from 12 matches over many years. from 2018 our shores in 2023. the final of the Vodacom was the worst return since rugby unity which By contrast the Springbok Sevens team goes One of those changes was to align with the The message is a stark one but cannot be Super Rugby. reached a nadir with a first defeat by Italy. from strength to strength. Although a bronze country’s geopolitical boundaries by moving to avoided: unless we succeed with our transfor- OPPOSITE FAR RIGHT: It was an inglorious start for coach Allister medal at the Olympics may ultimately have been nine members of SA Rugby, while retaining 14 mation plan, more disappointment and years Ilhaam Groenwald, seated Coetzee but there is no doubt that the playing less than they might have hoped their consistency playing unions. This was a requirement of SAS- such as 2016 lie ahead. next to Springbok Sevens and coaching resources at the disposal of South and standards of excellence were a beacon for all COC and the National Sports Plan but has the captain, Philip Snyman, Africa are far better than that return indicated. Our of South African rugby. It was no surprise that one side effect advantage of unlocking provincial Mark Alexander became the first female member of the Executive response was a coaching review at the end of the of their number – Seabelo Senatla – was named as funding for development projects. President Council. season and a number of issues were addressed. World Rugby’s Sevens player of the year. During the year the Executive Council also South African Rugby Union 06 | SOUTH AFRICAN RUGBY UNION | ANNUAL REPORT 2016 ANNUAL REPORT 2016 | SOUTH AFRICAN RUGBY UNION | 07 CEO’S REPORT The global economic outlook and the strain being felt by corporate South Africa weighed heavily on rugby in 2016 as the mother body and its constituent members felt the pain being suf- fered generally in what is euphemistically called a “challenging trading environment”. The competition for the discretionary rand quences of an under-performing national team balance from within the existing structures – Eleven new caps were created during has never been more intense. The prolifera- and commercial programme. and was immediately faced with an Irish team tion of leisure activities – anything from wine It also fell to the administration to be heav- that was to go on and complete a hat-trick of the course of the year while another six festivals to mountain bike races by way of a visit ily involved in the running of the Border and wins over the SANZAAR founder members. youngsters made a non-cap appear- to the mall – asks more and more questions of Eastern Province unions, both of which were The retirement of senior players and the what we as a sport offer our supporters. in administration in 2016. The work consumed departure of more players overseas against the ance in a draw against the Barbarians Our job as SA Rugby is twofold: we have to much time and resource from SA Rugby, which background of a weakening rand complicated support the playing of the game at a grassroots could have been usefully deployed elsewhere the problems for Allister and his team. New at Wembley in November. level as a leisure activity as well as run a billion- during the year.