Lions and BEE partners go separate ways

The Golden Lions Rugby Union have confirmed that their Black Economic Empowerment Partners have terminated their agreement with the Lions.

In October last year the Lions Rugby Union announced that TransAfrica Capital and the Guma group had acquired 49,9 percent of the Union but that has now fallen apart.

The Lions have released a statement which said, “The Golden Lions Rugby Union today wishes to confirm that negotiations around the completion of the shareholders agreement with GUMA TAC has been terminated by GUMA TAC. “

“It is with deep regret that the Lions received this notification today as we as the Golden Lions Rugby Union saw the arrangement as a wonderful opportunity to embrace the new future for the Golden Lions in a vibrant new partnership.

“We have worked very long and very hard at the Union to deliver a workable final shareholders agreement” said Mr. de Klerk. We were prepared to keep working on that process, but unfortunately the agreement could be concluded.

“This is a sad day in many ways, but our first concern has always been for the well being and integrity of rugby in the Golden Lions region, and until all our concerns were settled the Union felt it difficult to proceed.

Mr. de Klerk said that he could not go into commercial details but explained that the Lions leadership focus had to be on ensuring the health of rugby at all levels in the Union – not just with the marquee elements of the Lions team and playing venue.

“Producing a trophy-winning Lions team remains our top priority, but there’s always a danger that you can throw the baby out with the bathwater, and our duty as a Union is to promote and develop rugby at all levels in the Golden Lions region” said Mr. de Klerk.

Mr. de Klerk stressed that the dissolving of the arrangement would not have a negative impact on the team’s preparations for the ABSA Currie Cup and that the decision would free the Union from the negotiating table to concentrate on their core responsibilities.