South African Rugby Union Presentation

To the Portfolio Committee on Sport and Recreation

Tuesday, 24 March 2015

Contents

a) 3.1 Progress made in transformation, incl women’s rugby, participation

by persons with disabilities, provincial demarcations, and future

transformation objectives and transformation operational plan;

b) 3.2 Regulation of utilising foreign players in domestic league

c) 3.3 Performance plans of provincial academies

d) 3.4 Development programmes;

e) 3.5 Overview of governance and related issues;

f) 3.6 Annual report, including financial statements.

2

3.1 Transformation - Overview

• The challenge since 1992 has been to change the historically-based racial structures within South African rugby.

• We have made big advances and can point to significant achievements.– SARU has had a black president since 1998– The Springboks’ leading try scorer of all time is black– Four of the last nine players of the year have been black– We’ve had a black Springbok coach and a black Currie Cup winning coach– Our national teams vary between 20% and 75% in terms of black

representation– And in April 2014 the EPG published their report on holistic transformation

which showed rugby coming out on top with the only “pass” mark awarded with a score of 71%

• But it has not been enough….

3

3.1. Transformation – This was happening

4

3.1 Transformation - Overview• In November 2012 we held a Transformation Indaba and issued a Transformation

Charter signed by all Unions• We presented a draft Transformation Plan aligned to the National Sports Plan to

that Indaba• We followed up with two years’ worth of workshops and “audits” of the member

unions and of rugby as a whole• In August 2013 we announced demographic targets for the Vodacom Cup• We showed the draft to the Sports Minister and SASCOC and they were happy • The Plan was approved by our General Council in December but already things had

begun to change

5

3.1 Transformation – A corner was turned

SARU Transformation Indaba November 2012

Quotas introduced to Vodacom Cup for 2014

6

3.1 Transformation – SARU’s Strategic Transformation Plan

– It’s not just about “numbers on the field”– It is multi-dimensional, effecting all areas of rugby– It is measurable and will be measured – It is time-bound– There is an annual implementation plan

7

3.1 Transformation – SARU’s Strategic Transformation Plan

– And it is backed by SARU’s own tailor-made, software IP (intellectual property)• ‘Footprint’ – an athlete management system• ‘Stratus’ – performance analysis software• ‘Blueprint’ – coaching templates for South African

rugby• ‘Talent ID’ – an app for scouts and selectors• ‘e-filing’ – Not SARS but a real-time dashboard for the

Strategic Performance Management department to monitor against the STP

8

3.1 Transformation – SARU’s Strategic Transformation Plan1. Demographic Representation - To change SARU’s demographic profile at

provincial and national level on and off the field of play.2. Access to the Game - To ensure rugby is accessible to all who wish to

participate, including women, disabled persons and people in rural areas.3. Skill and Capability Development - To create development pathways for

players, coaches, referees and administrators to improve productivity and performance levels.

4. Performance - To deliver competitive and world-class performances on and off the field of play by focusing on quality and the application of the principle of merit.

5. Community Development and Social Initiatives - To create effective interventions in order to increase participation through community development and social responsibility initiatives.

6. Corporate Governance - To establish effective rugby administrative structures in order to comply with good corporate governance.

9

3.1 STP Snapshot (Demographic Dimension)

• Increase black participation in all SARU’s amateur and professional tournaments – whether age group or open age – to 50% by 2019

• Increase black participation in all SARU’s national representative teams to 50% by 2019

• Increase black participation in all SARU’s national representative team managements and in the SARU board to 50% by 2019

• Increase black coaches and referees involved at provincial and national level.

10

3.1 Transformation - What that looks like

11

3.1 2015 Implementation Plan – Demographics

KPI’S ACTIVITIES RESPONSIBLE TIMELINE

• Increased black representation in:• Vodacom Cup – 35%• Currie Cup – 30/35%• Super Rugby – 30%• U21 – 30/35%• U19 – 30/35%

• Increased Black representation in:• Junior Springboks – 35%• Springbok Sevens – 40%• Springboks – 30%

• Increased Black representation in Provincial & national Team Management structures – 40%

• Increased Black representation in executive and board structures – 50%

• Agree and signoff scorecards with Unions.• SISSA monitor domestic and international

competitions.• Monitor off field demographic targets

agreed by Union scorecards.• Draft data into E-Filing.• Compile monthly report for CEO.• Prepare executive reports on request.

MGJD, MG

MG, SM

MG, SMMG, SMMG, SM

12 Jan – 01 March.12 Jan – 30 Nov.12 Jan – 30 Oct.

12 Jan – 30 Oct12 Jan – 30 Nov

12

3.1 2015 Implementation Plan – Access

KPI’S ACTIVITIES RESPONSIBLE TIMELINE

• Increase participants – 60 000 through GIR.

• 320 GIR trained community coaches.• 100 trained community volunteers.• 14 Community Rugby Centres.• Schools leagues – 30 non-traditional

rugby schools• 4 club Easter Tournaments• 2 Heritage tournaments• 1 Fish Factory Tournament• Zibi Sevens – 36 schools• Womens Rugby tournaments &

competitions.• Wheelchair rugby administration

• Assist Unions with new online development system.

• Review and evaluate online applications.• Allocate funding according union KPI’s .• Introduce GIR to 14 Unions.• Assist Unions to structure community GIR

workforce.• Monitor and review monthly GIR reports.• View online Union reports and give feedback.• Monitor Union targets.• Compile, review and analyse Union

deliverables.• Executive report

MG, SM, VG, JL.

MG, VGMGMG, SN, VGMG, SN, VGMG, SN, SM

MG, SM, VG, SN

12 Jan – 01 March.12 Jan – 01 Oct.12 Jan – 30 Oct.12 Jan – 30 Nov.12 Jan – 30 Nov.12 Jan – 30 Nov.

15 Nov.

13

3.1 2015 Implementation Plan – Skills

KPI’S ACTIVITIES RESPONSIBLE TIMELINE

• Train and accredit 1500 Level 1 coaches.

• Train and accredit 1000 Level 2 coaches.

• Train 500 new Sevens coaches.• Train and accredit 700 Level 1

referees.• Train and accredit 300 Level 2

referees.• Train and accredit 200 Club

administrators.

• Evaluate online Union applications and allocate funding.

• Coordinate training programmes with coaching and referees departments.

• Monitor Union targets and online progress reports.

• Compile training data in E-Filing and verify with coaching and referees departments.

• Coordinate Club-wise training with service providers and CATHSETA.

• Compile administrators data in E-Filing.• Compile executive report

MG, SM, VG.

MG, VG

MG, VG

MG, SM

MG, VG

MG, SMMG, SM, VG

12 Jan – 01 March.12 Jan – 01 Oct.

12 Jan – 30 Nov..12 Jan – 30 Nov.

12 Jan - 30 Nov.

12 Jan – 30 Nov.15 Nov.

14

3.1 2015 Implementation Plan – PerformanceKPI’S ACTIVITIES RESPONSIBLE TIMELINE• 18 Provincial HP Community rugby

squads (Iqhawe).• 14 Trained strength and

conditioning coaches in communities (one per coaching centre).

• 40% black representation in junior elite squads.

• Domestic Competitions.• International Competitions – World

Rugby Rankings.• 100% black player throughput to

Vodacom Cup.• 35% black player throughput to

Currie Cup.• 20% black player throughput to

Super Rugby.• 100% SA U20 players contracted by

Unions.• 35% Black employees in middle and

senior management.• 25% procurement from targeted

service providers.

• Evaluate online Union applications and allocate funding according KPI’s.

• Monitor and compile Provincial and International performances.

• Transfer performance data in E-Filing.• Monitor elite player development and

transfer data to E-Filing.• Monitor employment equity and

preferential procurement targets and transfer data to E-Filing.

• Compile executive report.

MG, SM, VG.

MG, VG

MG, SM

MG, SM

MG, VG, SM

MG, SM

12 Jan – 01 March.12 Jan – 01 Oct..12 Jan – 30 Nov.12 Jan – 30 Nov.

12 Jan – 30 Nov.

15 Nov.

15

3.1 2015 Implementation Plan – Communities

KPI’S ACTIVITIES RESPONSIBLE TIMELINE

• Number Awareness programmes.• Number job creation programmes.• Number CIS programmes.• 52 Functional community rugby

structures.

• Evaluate online applications and allocate project funding.

• Monitor online Union reports.• Draft project results data into E-Filing.• Compile executive reports.

MG, SM, VG.

MG, VGMG, SMMG, SM

12 Jan – 01 March.12 Jan – 30 Oct..12 Jan – 30 Oct..15 Nov.

16

3.1 2015 Implementation Plan – Governance

KPI’S ACTIVITIES RESPONSIBLE TIMELINE

• 14 Union specific administration training.

• 14 Union specific workforce programmes.

• Number Union CEO’s and staff capacity building programmes.

• Number Union Executive Board/ Council capacity building programmes.

• Number Union ant-doping training.

• Evaluate online Union applications and allocate project funding accordingly.

• Monitor Union online reports.• Draft information into E-Filing.• Provide guidance and resource material

where necessary.• Compile executive report.

MG, SM, VG.

MG, VGMG, SMMG, SM

12 Jan – 01 March.12 Jan – 30 Oct..12 Jan – 30 Oct..15 Nov.

17

3.1 Transformation - Women• Target of 50% women in administrative roles at national and provincial level by 2019• Target of 50% black women in all national and provincial women’s teams by 2019• In January 2014, a selected group of women received contracts for the first time in the

history of the game in South Africa (67% black).• A High Performance programme was initiated for women. • Various trial and international tour games were organized in the build-up to the IRB

Women’s Rugby World Cup• A comprehensive conditioning and coaching programme was introduced in partnership with

the Department of Sport and Recreation of the Eastern Cape and NMMU High Performance Academy

• Following the IRB Women’s Rugby World Cup, a strategic decision was made to concentrate on Sevens rugby at a National Level while a comprehensive development programme would be initiated from U16 level for the Fifteens code

• It was decided to align Women’s Rugby with our Men’s Sevens structures and it now runs parallel to the Men’s programme on a ‘same-standard’ approach at all levels

• All contracted players are based at SAS in Stellenbosch and now have a full time coach, conditioning coach, physiotherapist / team manager

18

3.1 Transformation - Women• Springbok Women Sevens team qualified as a core team on the World Series • In Women’s XVs rugby, SARU has initiated the ‘Youth Training Centre’ programme.• SARU will establish six Youth Training Centres in selected regions as part of Phase 1 in 2015• Each Youth Training Centre will have the following facilities available for players: Gym;

Training Field; Medical Facilities; Lecture (team) rooms; Change rooms; Canteen.• Youth Training Centres will act as hubs for players in surrounding areas and deliver SARU

accredited coaching programmes, conditioning programmes and medical/nutritional programmes for contracted or selected players to assist in their holistic development from age 16 through to senior rugby.

• For the first time SARU will host U16 and U18 Elite Youth Weeks (Grant Khomo/Craven Week) for women’s rugby in 2015

• SARU will assist all unions with coaching and conditioning programmes for all players from U16 upwards to improve the overall standard of performance at elite tournaments such as the Youth Weeks

19

3.1 Transformation - Disabilities• Target of 2% persons with a disability employed as part of the STP• Wheelchair Rugby is an associate member of SARU and routinely attend our

General Council• Supported financially with allocations of R450 000 in both 2014 and 2015 • The South African Deaf Rugby Association is in the process of applying for

membership• SARU has made an allocation of R200 000 to support them in 2015

20

3.1. Transformation – Demarcation• SARU’s constitution was amended in December to recognise geopolitical

boundaries

• A plan to align provincial rugby union boundaries with geopolitical boundaries is being formulated for presentation to SASCOC

• Rugby is played in all 52 districts

21

3.1 SARU Community Rugby Structures within municipal boundaries

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Active

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Inactive

6

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20

14Eastern Cape 11Border 7EPRU 4

Free State 6Free State 3Griffons 3

Gauteng 14Blue Bulls 4Falcons 4Golden Lions 6

KZN 11Sharks 11

Limpopo 5Blue Bulls 5

Mpumalanga 4Pumas 4

North West 3Leopards 3

Northern Cape 5Griquas 5

Western Cape 20Boland 8SWD 6WPRFU 6

Grand Total 79

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3.1 Rugby Communities in Municipal Districts

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3.1 Rugby Communities in Municipal Districts

3.2 Foreign Players

25

• The terms of participation for South African franchises specify as follows:

• “Foreign” is defined as non-SA passport holders (with the exception of holders of passports from other African countries)

• Currently there are three (3) foreigners among the 200 players currently declared in Super Rugby squads (and one non-SA African from Kenya).

3.3 Provincial Academies

26

SARU manages four regional academies, established with support from National Lottery Board, in Boland, SWD, EP and Border. There are a further 12 private or provincial rugby academies nationwide over which SARU has no jurisdictionAchievements of the Four SARU Academies in 2014•98 players were trained in the academies on a full-time basis•Ratio of 80% black players •All academy players studied or participated in scholarship programmes•Programmes included: Rugby, Conditioning, Academic Studies, Life Skills, Mentorship, Medical Services, Nutrition•94% of these players participated in provincial age group rugby (under 19 and under 21 Currie Cup)•24 played at Senior Professional level (Vodacom Cup , Currie Cup and Super Rugby) and have been contracted in various unions. •Employment was created for 41 persons as coaches, managers, medical personnel.

3.3 Provincial Academies

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SARU Academies in 2015•The programmes at the four SARU academies are continuing, with several new recruits being selected•This Programme has expanded to involve the full time academy - as well a wider high performance component•More than 160 players will form part of these four academies, with a ratio of over 80% generic black players •The best generic black players in other academies are also being identified, supported and monitored •The aim is to deliver 60 players to the professional level•All 16 rugby academies in South Africa will be assisted with programmes and guidelines of International Standard

3.4 Development Programmes

Governance•Union Specific administration projects – Workforce training (Human Resources)•Capacity building of CEO, senior and middle management•Capacity building – anti-doping and player welfare•Capacity building – Employment equity and preferential procurement

Participation•Increase access and Participation in targeted primary schools – Get Into Rugby (GIR) programme according to the Long Term Player Development (LTPD).•Targeted Community/Township leagues•Targeted Community/ Township tournaments and competitions •International exchange programme

28

3.4 Development Programmes

Training and Education•Training and accreditation – Level 1, level 2 and sevens coaches•Training and accreditation – Administrators•Training and accreditation – Level 1 and 2 referees•Long Term Coaching Development (LTCD) programmeSocial Community•Community awareness programmes with NGO's•Volunteer and job-creation programmes•Mass Participation Programme (MPP) with NGO'sPerformance•Community based junior high performance programmes. (IQHAWE)•Targeted schools – Coca-Cola Schools Excellence Programme•Elite Player Development (EPD) u16 & u18

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30

Standing Committees Ad Hoc Committees

Meets 3 x pa/2 reps x 14 unionsSARU president is chairman SARU’s highest authority The business’s shareholders.

The ‘board’ of SARU. 7 members elected by General Council, 2 independents, player organisation rep and CEO and CFO

Independent

Drives strategy and direction; looks after bottom line; recommends appointments;Reviews performance; manages business

Has global oversight; ratifies major appointments; approves budgets; determines competition structures

3.5 Governance

General Council The Regions with two votes eachThe President with one Vote

– Highest Authority within Organisation– Ratifies Policies and Constitution changes– Ratifies Competition formats and

Regulations– Approval of a strategic plan; – Approval of the annual budget; – Adoption of the annual financial

statements; – Approval of the remuneration of the

members of the executive council and the auditor.

– Appointment of an auditor;– Appointment of the chief executive officer. – Ratify the appointment of National Coach– Election of Member of Executive Council

Executive CouncilSeven Elected MembersTwo Independent Member AppointedOne Member from Players AssociationCEO and CFO

– Manage and Control the Commercial Business of Rugby

– Appoints two Independent member with special Skills as determined from time to time.

– Manage and Control all competitions– Appointment of Sub Committee– Responsible for:

• overseeing project management and the implementation of strategy;

• complying with the requirements of good corporate governance;

• providing strategic leadership; and • overseeing SARU’s financial affairs.

3.5 Governance - Mandates

Term of Reference• Internal monthly financial

reporting• Management of revenue streams

(including Commercial Properties, Sponsorships and Broadcasting Rights)

• Financial Policies• Financial results, budgets, cash

flow management and financial planning

• Ad-hoc matters which have a financial or commercial impact

• Financial Support

Members of the Committee• Boet Fick – Chairman Executive Member

– Director General -Department of the Chief Minister – LEBOWA KGOMO

– Secretary – Department of Agriculture – Limpopo– Chairman – Development Cooperation – Limpopo

• Louis Von Zeuner –( Independent Players’ Assoc. Representative)– Group Executive Director of Absa Group– Independent Non-Executive Director – EQSTRA LTD– Director – Mastercard– Independent Non-Executive Director – Telkom

• Monde Tabata - Independent Executive Member– MD of Megapro Pty LTD– Director – Peermont Global Group

• Mark Alexander – Executive Member– Chairman – SA Rugby Travel (Pty) ltd– Chairman – SANZAR– Director – Morvest (Pty) Ltd

3.5 Governance - Finance

Terms of Reference• Integrated reporting• Combined assurance• Internal audit• Risk management• External audit• Ethics and Organisational

Integrity• Conflicts of Interests

Members of the Committee• Mputumi Damane (Chairman)

– Group Chief Executive Officer - CEF Ltd.– Chief Executive Officer – Nuclear Energy Corporation of SA– Chairman – Strategic Fuel Fund – Board Member of Petro

• Raymond Fenner (independent)– Member - South African Institute of Chartered Accountants (SAICA)– Associate Member - Institute of Risk Management, South Africa

(IRMSA)– Member - Institute of Risk Management, South Africa (IRMSA)

• Edna van Harte (Independent)– Dean of the Faculty of Military Science at the University of

Stellenbosch

• Sinoxolo Jodwana (Independent)– Monitoring /Auditing Officer – Nedbank Investments (Pty )Ltd– Internal Auditing Dipploma

• Pat Kuhn– MD – Nortans (Pty) Ltd– Director of Companies

3.5 Governance – Audit & Risk

Terms of Reference• To evaluate and consider specific proposals

made for remuneration and other conditions of employment by the appropriate executive, non executive persons and elected members of the Executive Council.

• Consider and make recommendations to the Executive Council on specific remuneration packages for other members of management put to the Committee.

• Inquire into and comment on specific policies including and relating to Recruitment and Remuneration, Performance Management, Employment Equity and Transformation, Training and Development, Succession Planning and make recommendations on these issues to the Executive Council after consulting the appropriate executives and management.

Members of Committee• Monde Tabata - Independent Executive

Member– MD of Megapro Pty LTD– Director – Peermont Global Group

• Jonathan Goldberg (Independent)– CEO – Global Business Solutions– Co-author – Broad-Based Black Economic

Empowerment :Final codes and scorecards 2008

– Co-author – Cracking Broad-Based Black Economic Empowerment – 2005

• Ms. Nadia Mason (Independent)– Leadership & Management Development;

Executive Coach; Organisational Development Facilitation; People Development Consultant & Executive Search. 20+ years of experience in Human Capital Management, Business and Entrepreneurship

• Vic Christian (Independent)

3.5 Governance – HR & Remuneration

Terms of Reference•Advise on all legal or quasi-legal matters as required from time to time; •Act as the committee to which the Executive Council in terms of clause 15.13 of the Constitution has delegated its disciplinary powers:•Has the power to take any steps as it may deem fit against any rugby body or person, as defined in the Constitution.•Prepare and recommend amendments and/ or additions to the Constitution, Regulations or Rules or prepare and recommend new regulations, rules or documents that may be required from time to time;• Interpret any of the provisions of the Constitution, Regulations or Rules of the Union; and•In general to act as mandated or required by the Executive Council, the Chief Executive Officer or the Manager: Legal from time to time

Members of the Committee•Judge. Lex Mpati (Chairman)

– President of the Supreme Court of Appeal

– Acting Judge - Constitutional Court of South Africa

•Peter Ingwersen – Commissioner Small Claims Court– Advocate to High Court– Director of Companies

•Adv. Jannie Lubbe – Senior advocate – Associate Director - KPMG Advisory– Associate Director –KPMG Forensic

Audit

3.5 Governance – National Judicial

3.6 Annual Report and Financials

36

Revenue (% share in 2013)Group

2013R

Group2012

R

Union2013

R

Union2012

R

Broadcasting Rights (43%) 340,864,209 307,140,378 340,864,209 307,140,378

Sponsorship (42%) 339,243,194 272,315,371 339,204,999 272,315,371

Grants from IRB Trust (35) 22,711,766 23,742,133 22,711,766 23,742,133

Home Tests (7%) 52,230,000 68,655,340 52,230,000 68,655,340

Merchandising royalties (1%) 11,713,546 18,747,977 11,713,546 18,747,977

Government grants (0%) 2,049,757 553,870 2,049,757 553,870

Lottery grants (3%) 20,215,223 241,499 20,215,223 241,499

Springbok Supporters Club membership (1%) 5,762,541 6,274,098 - -

Other income (0%) 3,799.337 10,644,556 5,678,270 11,059,689

Investments (0%) 2,189,142 6,492,903 2,143,773 6,460,573

800,778,715 714,808,125 796,810,543 708,916,830

3.6 Annual Report and Financials

37

Expenditure (% share in 2013)

Group2013

R

Group2012

R

Union2013

R

Union2012

R

Broadcasting rights and other allocations to provinces (21%)

170,212,582 151,289,798 170,212,582 151,289,798

Commercial and Marketing (29%) 229,664,733 236,669,234 227,886,371 231,593,559

Corporate affairs (2%) 13,042,248 12,279,956 13,042,248 12,279,956

Development (12%) 94,691,639 68,478,559 92,122,019 68,478,559

Governance (1%) 10,714,202 10,712,136 10,714,202 10,712,136

High performance (25%) 194,084,503 149,269,660 194,012,502 149,269,660

Human resources (1%) 6,330,441 5,066,212 6,279,574 5,066,212

Office of the CEO (1%) 9,089,586 8,844,510 9,089,586 8,844,510

Operations and finance (4%) 32,010,954 31,751,551 32,006,192 31,751,551

Referees (4%) 34,156,191 34,199,219 34,195,946 34,199,219

Total operating expenses (793,997,079) (708,560,835) (789,561,222) (703,485,160)

Interest paid (1,640,385) (74,813) (1,640,385) (74,813)

Profit before taxation 5,141,251 6,172,474 5,608,936 5,356,857

Taxation 5,995,316 (3,825,089) 6,074,063 (3,757,753)

Total comprehensive income 11,136,567 2,347,385 11,682,999 1,599,104