MATTERS have gone from bad to worse for the Golden Lions Rugby Union after they were yesterday ordered to pay R2.56-million in outstanding franchise fees to the Leopards Rugby Union.
Retired judge WJ Hartzenburg made the ruling after a dispute between the Lions and Super Rugby partners the Leopards and Mpumalanga Pumas went to arbitration. It's a body blow to the Lions, who were booted out of Super Rugby for the 2013 season.
The Pumas and Leopards had claimed fees owed to them since 2008, and yesterday they were vindicated although Hartzenburg didn't rule on the entire matter. He ruled that R2.56-million, excluding interest, was payable to the Leopards for money owed from the 2008, 2009 and 2010 seasons. He also ruled that the Lions did not owe the Pumas any money because of an "earlier agreement on payment".
Interest on the amount owed to the Leopards would be calculated at a hefty 15.5% from the date of the arbitration agreement, May 31 this year. However, the Pumas and Leopards were suing for money owed up to and including the 2012 season.
Hartzenburg reserved judgment on this and has given the Lions two days to conclude a business agreement with the Leopards and Pumas relating to the 2011 and 2012 seasons.
If no agreement is reached in the next 48 hours then Saru must come to a decision on a fair and reasonable distribution of the R6.6-million for the 2011 and 2012 seasons.
"We are disappointed by the outcome and even though we could try and take this further, arbitration outcomes are binding," Lions president Kevin de Klerk said.
Lions have to fork out R2.5m
MATTERS have gone from bad to worse for the Golden Lions Rugby Union after they were yesterday ordered to pay R2.56-million in outstanding franchise fees to the Leopards Rugby Union.
Retired judge WJ Hartzenburg made the ruling after a dispute between the Lions and Super Rugby partners the Leopards and Mpumalanga Pumas went to arbitration. It's a body blow to the Lions, who were booted out of Super Rugby for the 2013 season.
The Pumas and Leopards had claimed fees owed to them since 2008, and yesterday they were vindicated although Hartzenburg didn't rule on the entire matter. He ruled that R2.56-million, excluding interest, was payable to the Leopards for money owed from the 2008, 2009 and 2010 seasons. He also ruled that the Lions did not owe the Pumas any money because of an "earlier agreement on payment".
Interest on the amount owed to the Leopards would be calculated at a hefty 15.5% from the date of the arbitration agreement, May 31 this year. However, the Pumas and Leopards were suing for money owed up to and including the 2012 season.
Hartzenburg reserved judgment on this and has given the Lions two days to conclude a business agreement with the Leopards and Pumas relating to the 2011 and 2012 seasons.
If no agreement is reached in the next 48 hours then Saru must come to a decision on a fair and reasonable distribution of the R6.6-million for the 2011 and 2012 seasons.
"We are disappointed by the outcome and even though we could try and take this further, arbitration outcomes are binding," Lions president Kevin de Klerk said.
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