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 womens 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
Weve 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

Quotas introduced
to Vodacom Cup for

SARU Transformation
Indaba November 2012

6
 3.1 Transformation
SARUs Strategic Transformation
Plan
Its 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
SARUs Strategic Transformation
Plan
And it is backed by SARUs 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
SARUs Strategic
Transformation Plan
1. Demographic Representation - To change SARUs 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 SARUs amateur and
professional tournaments whether age group or open age to
50% by 2019
Increase black participation in all SARUs national representative
teams to 50% by 2019
Increase black participation in all SARUs 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
KPIS ACTIVITIES RESPONSI TIMELI
BLE NE
Increased black Agree and signoff scorecards with MG 12 Jan 01
representation in: Unions. JD, MG March.
Vodacom Cup 35% SISSA monitor domestic and 12 Jan 30
Currie Cup 30/35% international competitions. MG, SM Nov
Super Rugby 30% Monitor off field demographic .12 Jan 30
U21 30/35% targets agreed by Union MG, SM Oct.
U19 30/35% scorecards. MG, SM
Draft data into E-Filing. MG, SM 12 Jan 30
Increased Black Compile monthly report for CEO. Oct
representation in: Prepare executive reports on 12 Jan 30
Junior Springboks 35% request. Nov
Springbok Sevens 40%
Springboks 30%

Increased Black
representation in Provincial
& national Team
Management structures
40%
Increased Black
representation in executive
and board structures 50%

12
 3.1 2015 Implementation Plan
Access
KPIS ACTIVITIES RESPONSI TIMELI
BLE NE
Increase participants 60 Assist Unions with new online MG, SM, VG, JL. 12 Jan 01
000 through GIR. development system. March.
320 GIR trained community Review and evaluate online MG, VG 12 Jan 01
coaches. applications. MG Oct.
100 trained community Allocate funding according union MG, SN, VG 12 Jan 30
volunteers. KPIs . MG, SN, VG Oct.
14 Community Rugby Introduce GIR to 14 Unions. MG, SN, SM 12 Jan 30
Centres. Assist Unions to structure community Nov.
Schools leagues 30 non- GIR workforce. MG, SM, VG, SN 12 Jan 30
traditional rugby schools Monitor and review monthly GIR Nov.
4 club Easter Tournaments reports. 12 Jan 30
2 Heritage tournaments View online Union reports and give Nov.
1 Fish Factory Tournament feedback.
Zibi Sevens 36 schools Monitor Union targets. 15 Nov.
Womens Rugby tournaments Compile, review and analyse Union
& competitions. deliverables.
Wheelchair rugby Executive report
administration

13
 3.1 2015 Implementation Plan
Skills
KPIS ACTIVITIES RESPONSI TIMELI
BLE NE
Train and accredit 1500 Level Evaluate online Union applications and MG, SM, VG. 12 Jan 01
1 coaches. allocate funding. March.
Train and accredit 1000 Level Coordinate training programmes with MG, VG 12 Jan 01
2 coaches. coaching and referees departments. Oct.
Train 500 new Sevens Monitor Union targets and online MG, VG
coaches. progress reports. 12 Jan 30
Train and accredit 700 Level Compile training data in E-Filing and MG, SM Nov.
1 referees. verify with coaching and referees .
Train and accredit 300 Level departments. MG, VG 12 Jan 30
2 referees. Coordinate Club-wise training with Nov.
Train and accredit 200 Club service providers and CATHSETA. MG, SM
administrators. Compile administrators data in E- MG, SM, VG 12 Jan - 30
Filing. Nov.
Compile executive report
12 Jan 30
Nov.
15 Nov.

14
 3.1 2015 Implementation Plan
Performance
KPIS ACTIVITIES RESPONSIB TIMELI
LE NE
18 Provincial HP Community Evaluate online Union applications MG, SM, VG. 12 Jan 01
rugby squads (Iqhawe). and allocate funding according March.
14 Trained strength and KPIs. MG, VG 12 Jan 01
conditioning coaches in Monitor and compile Provincial and Oct.
communities (one per International performances. MG, SM .
coaching centre). Transfer performance data in E- 12 Jan 30
40% black representation in Filing. MG, SM Nov.
junior elite squads. Monitor elite player development 12 Jan 30
Domestic Competitions. and transfer data to E-Filing. MG, VG, SM Nov.
International Competitions Monitor employment equity and
World Rugby Rankings. preferential procurement targets MG, SM 12 Jan 30
100% black player and transfer data to E-Filing. Nov.
throughput to Vodacom Cup. Compile executive report.
35% black player throughput
to Currie Cup. 15 Nov.
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.

15
 3.1 2015 Implementation Plan
Communities
KPIS ACTIVITIES RESPONSI TIMELIN
BLE E
Number Awareness Evaluate online applications and MG, SM, VG. 12 Jan 01
programmes. allocate project funding. March.
Number job creation Monitor online Union reports. MG, VG 12 Jan 30 Oct.
programmes. Draft project results data into E- MG, SM .12 Jan 30 Oct.
Number CIS programmes. Filing. MG, SM .15 Nov.
52 Functional community Compile executive reports.
rugby structures.

16
 3.1 2015 Implementation Plan
Governance
KPIS ACTIVITIES RESPONSI TIMELINE
BLE
14 Union specific Evaluate online Union applications MG, SM, VG. 12 Jan 01
administration training. and allocate project funding March.
14 Union specific workforce accordingly. MG, VG 12 Jan 30 Oct.
programmes. Monitor Union online reports. MG, SM .12 Jan 30 Oct.
Number Union CEOs and Draft information into E-Filing. MG, SM .15 Nov.
staff capacity building Provide guidance and resource
programmes. material where necessary.
Number Union Executive Compile executive report.
Board/ Council capacity
building programmes.
Number Union ant-doping
training.

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 womens 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
Womens 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 Womens 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 Womens Rugby with our Mens Sevens structures and it now
runs parallel to the Mens 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 Womens 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 womens 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
SARUs 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 14
Eastern
Cape 11 1
Border 7 1 4
EPRU 4
6 3 1
1
Free State 6 1
Free State 3 4 1
Griffons 3 6
5 3 1
Gauteng 14 1 1
1
Blue Bulls 4 5 2 2
Falcons 4 1 1
1
Golden Lions 6 1 1 1 1
KZN 11 1
1 1 1
Sharks 11 1
3 1
Limpopo 5 1 1
Blue Bulls 5 1
1 1
1 11
Mpumalang 1
1
a 4
1
Pumas 4 3
1
North West 3 3
Active
Leopards 3 4 1
New
Northern 3
2
1
6
Cape 5 2
Inactive
Griquas 5
Western
11
Cape 20 20
Boland 8
22 SWD 6
 3.1 Rugby
Communiti
es in
Municipal
Districts

23
 3.1 Rugby
Communiti
es in
Municipal
Districts

24
 3.2 Foreign Players
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).

25
 3.3 Provincial Academies
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 jurisdiction
Achievements 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.

26
 3.3 Provincial Academies
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

27
 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) programme
Social Community
Community awareness programmes with NGO's
Volunteer and job-creation programmes
Mass Participation Programme (MPP) with NGO's
Performance
Community based junior high performance programmes. (IQHAWE)
Targeted schools Coca-Cola Schools Excellence Programme
Elite Player Development (EPD) u16 & u18

29
 3.5 Governance
Has global oversight; ratifies
major appointments; approves
budgets; determines competition
Meets 3 x pa/2 reps x 14 structures
unions
SARU president is chairman
SARUs highest authority
The businesss shareholders. The board of SARU. 7 members
Independent elected by General Council, 2
independents, player
organisation rep and CEO and
CFO

Standing Committees Ad Hoc Committees

Drives strategy and direction; looks
after bottom line; recommends
appointments;
Reviews performance; manages
business
30
3.5 Governance - Mandates
General Council
The Regions with two votes each
The 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 Council
Seven Elected Members
Two Independent Member Appointed
One Member from Players Association
CEO 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 SARUs financial affairs.
 3.5 Governance - Finance
Members of the
Term of Reference Committee
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
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 Audit &
Risk of the
Members
Terms of Reference
Committee
Integrated reporting Mputumi Damane (Chairman)
Combined assurance Group Chief Executive Officer - CEF Ltd.
Chief Executive Officer Nuclear Energy
Internal audit Corporation of SA
Risk management Chairman Strategic Fuel Fund
External audit Board Member of Petro

Ethics and Raymond Fenner (independent)

Member - South African Institute of Chartered
Organisational Integrity Accountants (SAICA)
Conflicts of Interests 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 HR &
Remuneration
Terms of Reference
To evaluate and consider specific
Members of Committee
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.
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 National
Judicial
Terms of Reference Members of the Committee
Advise on all legal or quasi-legal matters Judge. Lex Mpati (Chairman)
as required from time to time;
Act as the committee to which the
President of the Supreme
Executive Council in terms of clause 15.13 Court of Appeal
of the Constitution has delegated its Acting Judge - Constitutional
disciplinary powers:
Has the power to take any steps as it may Court of South Africa
deem fit against any rugby body or
person, as defined in the Constitution. Peter Ingwersen
Prepare and recommend amendments Commissioner Small Claims Court
and/ or additions to the Constitution, Advocate to High Court
Regulations or Rules or prepare and Director of Companies
recommend new regulations, rules or
documents that may be required from Adv. Jannie Lubbe
time to time; Senior advocate
Interpret any of the provisions of the
Constitution, Regulations or Rules of the
Associate Director - KPMG
Union; and Advisory
In general to act as mandated or required Associate Director KPMG
by the Executive Council, the Chief Forensic Audit
Executive Officer or the Manager: Legal
from time to time
 3.6 Annual Report and
Revenue (% share
Financials
Group Group Union Union
2013 2012 2013 2012
in 2013)
R R R R
Broadcasting Rights
340,864,209 307,140,378 340,864,209 307,140,378
(43%)
Sponsorship (42%) 339,243,194 272,315,371 339,204,999 272,315,371
Grants from IRB Trust
22,711,766 23,742,133 22,711,766 23,742,133
(35)
Home Tests (7%) 52,230,000 68,655,340 52,230,000 68,655,340
Merchandising royalties
11,713,546 18,747,977 11,713,546 18,747,977
(1%)
Government grants
2,049,757 553,870 2,049,757 553,870
(0%)
Lottery grants (3%) 20,215,223 241,499 20,215,223 241,499
Springbok Supporters
5,762,541 6,274,098 - -
Club membership (1%)
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

36
 3.6 Annual Report and
Expenditure
(% share in 2013)
Financials
Group
2013
Group
2012
Union
2013
Union
2012
R R R R
Broadcasting rights and
other allocations to 170,212,582 151,289,798 170,212,582 151,289,798
provinces (21%)
Commercial and
229,664,733 236,669,234 227,886,371 231,593,559
Marketing (29%)
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
32,010,954 31,751,551 32,006,192 31,751,551
(4%)
Referees (4%) 34,156,191 34,199,219 34,195,946 34,199,219
Total operating
(793,997,079) (708,560,835) (789,561,222) (703,485,160)
expenses
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
11,136,567 2,347,385 11,682,999 1,599,104
income

37