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South African Rugby Union Becomes Shareholder of United Rugby Championship

Strategic Insights

— 2 min read

The South African Rugby Union's (Saru) eight-year journey to become a shareholder of the United Rugby Championship (URC) has finally come to pass, marking a new era for the sport in South Africa. With R40-million in additional income projected for each of the four competing URC clubs, the Bulls, Lions, Sharks, and Stormers, the move is expected to be game-changing. However, with added expenses, including travel costs of around R30-million annually, the South African teams will still earn significantly more from URC with Saru as a shareholder.

Key Takeaways:

  • The South African Rugby Union (Saru) is now a shareholder of the United Rugby Championship (URC), marking the completion of an eight-year journey.
  • The URC will pay out a percentage of its profits to 16 clubs, including Saru, due to its roughly 15% share.
  • Saru will make an extra R40-million per club, plus a share of the URC's broadcast revenue and sponsorships.
  • The four URC clubs will have to make their own travel arrangements from the coming season on, which will eat into their dividend.
  • The move is expected to propel South Africa's URC clubs from a deficit of R60-million per year to a profit of around R70-million in the first year.
  • The URC's total income projection for next season is expected to be around £70-million, with each of the 16 participating clubs set to receive around £1.75-million.
  • Saru will share its accumulated costs over the past eight years, including paying to participate in URC and European Professional Club Rugby (EPCR).
  • The Bulls, Cheetahs, Lions, Sharks, and Stormers would have had no international competition if Saru had not made the significant investment.

Statistics:

  • The URC's total 2024 income was around £55-million (R1.3-billion), which included over £10-million from Saru.
  • URC's bundled broadcast revenue is expected to be stronger, with an increase in sponsorship revenue and EPCR dividends.
  • Each of the 16 participating clubs is expected to receive around £1.75-million from URC.
  • The four URC clubs will have to pay around R30-million annually for travel expenses.
  • Saru's deficit per year is expected to turn into a profit of around R70-million in the first year.
  • The URC's 2024 broadcast revenue included more than £10-million from Saru.

Sources:

  • An interview with Rian Oberholzer, Saru CEO
  • Anayi, Martin, URC CEO, statement
  • Saru's 2024 financial report
  • Daily Maverick article, "South African rugby becomes URC shareholder"

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