Saru declares significant loss in 2024 financial report – but 2025 outlook positive
Despite a large deficit, the South African Rugby Union is optimistic about the short-to-medium-term future.
The South African Rugby Union (Saru) reported a R93-million loss for the 2024 financial year, which was expected and forecast, despite record earnings, its latest financial statements reveal.
On the up side, new sponsorships and becoming a full shareholder of the United Rugby Championship (URC) from next month, has led to a bold prediction of a R100-million surplus in the current financial year.
Summary
2024 financial year (reported)
Loss: R93-million (expected and already offset in early 2025)
Commercial revenue: R1.552-billion (up from R1.44-billion in 2023)
Total income (including grants): R1.76-billion
World Rugby grant: R186-million
Merchandising: Doubled from R30-million to R62-million
Expenses: R1.871-billion (up 2.9% from R1.816-billion)
World Rugby events: R133-million
Player image rights: R148-million (+R24-million)
Private equity transaction costs: R13-million
URC/northern hemisphere franchises: R446-million
National teams including Springboks: R433-million (-R27m from 2023)
2025 outlook
Forecast revenue: Above R2-billion
Projected surplus: R100-million
Drivers:
New sponsorships
Full URC membership
Continued commercial growth
According to the financial report, the R93-million deficit had already 'been wiped out' over the first six months of 2025.
Overall, in 2024, group commercial revenues exceeded R1.5-billion for the first time (R1.552-billion), up from R1.44-billion in 2023.
Total income with the addition of grants (principally from World Rugby of R186-million) took total income to R1.76-billion. Revenues for 2025 are forecast to exceed R2-billion.
The 7.8% increase in revenues was attributable to increased broadcast revenues in a non-Rugby World Cup year, competition sponsorships and a strong performance in merchandising receipts, which more than doubled from R30-million to R62-million.
Expenses increased from R1.816-billion to R1.871-billion. The 2.9% increase was put down to investment in hosting three World Rugby tournaments (R133-million), a R24-million increase in player image rights (to R148-million), and the costs associated with the mooted private equity transaction (R13-million).
Total expenditure attributable to the northern hemisphere international franchise competition was R446-million, while Saru was still able to make a full distribution to member unions.
Spending on the No 1 world-ranked team, the Springboks, and other national teams was R433-million, a reduction of R27-million on the Rugby World Cup-winning year of 2023 (R460-million).
'Reporting a loss can never be desirable, but the irony is that we are more than satisfied with our position,' said Saru CEO Rian Oberholzer.
'We had budgeted for a loss in 2024 in the expectation that the members would approve the private equity transaction that they had sought, releasing funds to cover the deficit.
'When that did not happen, we continued with our planned commercial reset, and other revenue generation plans, which have borne fruit. We are in the very rare position among our international peers of continuing to be debt-free and confident of posting a surplus in 2025.'
European costs
Saru's biggest accumulated cost over the past eight years has been paying to participate in URC (and the Pro14 competition before that). The cost of securing South Africa's place in northern hemisphere rugby, which was accelerated by the collapse of Super Rugby in 2020, has been R2.2-billion.
According to the finance notes, Saru currently pays R392-million annually for top club teams to compete in URC and European Professional Club Rugby (EPCR). Without this contribution, the Bulls, Cheetahs, Lions, Sharks and Stormers would have no international competition.
Another R54-million is paid to travel and other associated costs for the teams.
Saru also paid R347-million to member unions (the 15 provinces) to ensure their existence.
Saru president Mark Alexander highlighted a period of significant challenges and growth for the organisation.
Despite the unsuccessful private equity transaction, it elevated Saru's profile and led to the exploration of alternative commercial initiatives, including a new commercial app and digital platform to diversify revenue streams.
The Saru president acknowledged a financial loss for the period, but emphasised that the R2.2-billion investment was made to secure future participation and full membership in the URC and EPCR by the end of June 2025.
He also noted that budgets for 2025-2027 had been secured, ensuring financial stability. Plans include digital transformation and leveraging partnerships for growth beyond 2028. Alexander also praised the Springboks' continued world-class performance, ranking No 1 in 2023 and 2024.
Oberholzer said the financial outlook beyond next year was equally healthy, with strong revenues forecast for 2026 with new competition formats in the pipeline.
'The income that SA Rugby generates all goes back into supporting the growth and promotion of rugby in the country,' he said.
'It allows us to fund Springbok campaigns, expand women's rugby programmes and fuel our other national teams. It pays for our members' activities in their communities as well as their professional teams.
'It underwrites our rugby safety programme BokSmart; supports referee and coaching development and our age group competitions as well as development programmes, and allows us in turn on sell-out Test match entertainment and our domestic competitions.
'Ultimately, every rand that we earn goes into powering the game in some shape or form and after a challenging 2024, we have a good news story to tell our South African rugby community as we look ahead.' DM
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