Becoming a Vodacom URC shareholder will have major financial implications for SA Rugby and its four franchises.
SA Rugby president Mark Alexander recently informed union members that the governing body is now officially a shareholder in the URC – a milestone that was confirmed publicly on Wednesday.
It brings to a close an eight-year journey since South Africa first began exploring a long-term future in the northern hemisphere.
MORE: SA Rugby becomes URC shareholder
“This is a red-letter day for South African rugby and marks the completion of a journey that began eight years ago when we first contemplated a northern hemisphere future,” said SA Rugby CEO Rian Oberholzer.
“There have been doubters over the years, but the vision we shared with [URC CEO] Martin Anayi and the URC team has now come to pass, and we look forward to growing the competition as full partners with our colleagues in the north.”
The financial implications are significant.
According to Daily Maverick, it should take SA Rugby from an annual deficit of around R60-million to a profit of roughly R70-million in the first year, while the Bulls, Lions, Sharks and Stormers are each set to bank an additional R40-million in the next financial year.
In recent seasons, SA Rugby had been spending about R300-million annually to keep its top franchises in the URC and previously the Pro14. While broadcast revenue and a R54-million travel subsidy helped soften the blow, the union was still left in the red every year.
FIXTURES: 2025-26 URC to start with a bang
As full shareholders, South Africa’s teams will now share in a larger broadcast pool – boosted by increased sponsorship and European Professional Club Rugby dividends – with URC’s total income projected to rise from £55-million in 2024 to around £70-million next season.
Although the franchises will have to foot their own travel bill, estimated at R30-million annually, the overall picture points to SA Rugby finally turning a profit from its northern adventure.
Photo: David Fitzgerald/Sportsfile via Getty Images
The post SA URC franchises set for cash injection appeared first on SA Rugby magazine.