NEWS: VALKE RUGBY TO BE LIQUIDATED

The Valke rugby union on Gauteng’s East Rand has announced that it will be liquidated.

Valke Rugby (Pty) Ltd said it was in “financial distress” and would not be able to pay its employees for July, or in future. The amateur arm of the Valke Rugby Union - which looks after club rugby in the East Rand - is not affected.

“It is with regret and great sadness that we have to announce that the professional arm of the Valke is in financial distress and the directors of the company resolved that the company be wound up, as it is unable to pay creditors and employees,” a statement from the company said. “The coronavirus has claimed another victim, after the Global Rapid Rugby competition played in Malaysia was cancelled due to the ban on travelling and the revenue stream from the license agreement was stopped. The Valke played in the competition and the owners of Global Rapid Rugby injected money into the company to pay the salaries of the players.”

Six of South Africa’s professional rugby unions, namely the Valke, Border, Boland, South Western Districts, Eastern Province and the Griffons, were recently “excluded” from participation in a new-look Currie Cup type competition, which is set to get off the ground next month.

The Bulls, Lions, Sharks, Stormers, Cheetahs and Kings have been earmarked to play in an eight-team Currie Cup, with a final set for December, depending on SA Rugby getting the green light from the government to stage the competition.

SA Rugby CEO Jurie Roux recently said the smaller unions, like the Valke, had decided against playing in any competition for the rest of the year, because it would be too costly for those so-called First-Division teams.