The Lions should get better lawyers
August 22, 2012 in Uncategorized
For the umpteenth time the Lions lost at arbitration when they lost their case against the Leopards and the Pumas. The fact that they went into arbitration because they disputed the Leopards and Pumas claims would only have been done on legal advice and from the result it seems this advice wasn’t very good.
While the result is not the be all and end all as the R6.6mil withheld by SARU for 2011 and 2012 should just about cover the R2.5mil they must pay the Leopards and the R3mil they must pay the Leopards and Pumas for 2011 and 2012. The damage of this result lies more in the damage to the Lions reputation and enhances the impression that they don’t have a clue how to win their battles .
I accept that this matter comes from before Kevin de Klerk’s time and from what I can make it it revolves around the fact that there seems to have been no written franchise agreement in place – another fiasco left behind by the previous Lions regime – but with the climate so anti-Lions it probably have been better to just pay up rather than go to arbitration.
Seriously, they need better legal advice. Kevin de Klerk is being left dangling in the wind by the current crowd.
In an interesting twist:
In a joint statement, the Pumas and Leopards said: “The Leopards Rugby Union and the Mpumalanga Rugby Union remain committed to the success of the Lions Franchise, notwithstanding the fact that the Lions Franchise will not participate in Super Rugby during the year 2013.”
And this after they voted against the Lions participation in Super Rugby? Come on! Tell me another one.
1. Claim A (As regards 2008, 2009 en 2010)
1.1. The Golden Lions Rugby Union must pay the Leopards Rugby Union the amount of ZAR2 565 000.00, being franchise monies for 2008, 2009 and 2010.
1.2. No amount is payable to the Mpumalanga Rugby Union for this period as the parties concluded an earlier agreement on payment.
1.3. The Golden Lions Rugby Union must furthermore pay interest on the amount of ZAR2 565 000.00, payable to the Leopards Rugby Union, at the rate of 15.5 percent from the date of the arbitration agreement, namely 31 May 2012, until the date of payment.
2. Claim B (As regards 2011 and 2012)
2.1. The Golden Lions Rugby Union is instructed to conclude a business arrangement for the 2011 and 2012 seasons with the Mpumalanga Rugby Union and the Leopards Rugby Union within two days after the granting of the arbitration order.
2.2. In the event of the parties not being able to reach an agreement as mentioned above, SARU is instructed to come to a decision on a fair and reasonable distribution of the amounts of ZAR6 600 000.00 for the 2011 and 2012 seasons.
2.3. Should SARU come to a decision that the Golden Lions Rugby Union must pay a portion of the amount of ZAR6 600 000.00 to the Mpumalanga Rugby Union and the Leopards Rugby Union for the 2011 and 2012 seasons, the above-mentioned amounts must be set off against the franchise payment of ZAR750 000.00 per annum payable by the Golden Lions Rugby Union to the Mpumalanga Rugby Union and the Leopards Rugby Union for the 2011 and 2012 seasons.
3. The Golden Lions Rugby Union is instructed to pay the cost of the arbitration incurred by both the Mpumalanga Rugby Union as well as the Leopards Rugby Union.