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WP Rugby’s ‘deal of the century’ implodes |
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Tin
Jong Leeu Joined: 30-Mar-2016 Location: Brits Status: Offline Points: 212 |
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Posted: 10-Dec-2020 at 6:44pm |
Flyt CEO Zane de Decker has confirmed they will seek to claim ‘damages’ from the Western Province Rugby Football Union over reneging on an agreement signed in June 2020.
A lengthy statement issued by Flyt reads as follow: ‘Today, Flyt Property Investment and an associated company Dream World Investments [“the Flyt Group”] formally lodged a claim with the Western Province Rugby Football Union for damages. The claim arises from WPRFU’s repudiation and breach of the binding agreements it concluded with the Flyt Group in June 2020 for the intended development of the Newlands rugby stadium and other properties owned by WPRFU. ‘The WPRFU approached the Flyt Group seeking a R112-million loan to settle its looming debts and to conclude a development agreement in June 2020. This was just 30 days before its existing outstanding repayment obligations to Investec and Remgro for R112 million were due. The Flyt Group’s strong balance sheet and ability to fund a deal of this magnitude without bank finance – and the associated delays – meant that it could move swiftly to consider advancing the funds that WPRFU was seeking. ‘The Flyt Group and WPRFU’s legal teams and advisors worked 24/7 during June to negotiate a deal that suited both parties. It is well known that the development transaction between WPRFU and the Flyt Group that was validly concluded in July 2020 would use the WPRFU assets, including the land on which Newlands rugby stadium and Brookside rugby club are situated, more efficiently for the Union’s short-, medium- and long-term economic viability. Critically, the concluded deal would provide the WPRFU with a much-needed and sustainable financial lifeline as a 50:50 partner in all economic benefits derived from the development in the future. https://highburyads.co.za/www/delivery/afr.php?zoneid=632&cb=INSERT_RANDOM_NUMBER_HERE" frameborder="0" scrolling="no" width="320" height="50" style="outline: none; -webkit-font-smoothing: antialiased;"> ‘WPRFU President Zelt Marais called the successfully concluded transaction “the deal of the century”. It therefore comes as a surprise that the WPRFU now appears to be seeking a way out of the deal that it sought and on a land value which it determined, which was also concluded after a comprehensive and transparent approval process. ‘WPRFU and the Flyt Group concluded valid agreements on 10 July 2020 after all required WPRFU forums supported the deal by an “overwhelming majority”. The WPRFU’s financial advisors presented a comprehensive analysis to the various decision-making bodies of the Union that approved the transaction. This included the Council on 30 June 2020, the Union on 8 July 2020, the Executive Committee on 8 July 2020, and the Trustees on 9 July 2020. The entire process was overseen and guided by the WPRFU’s legal team at STBB, its auditors BDO and its professional advisory team. ‘The Flyt Group has met all requirements of the agreements to date. These include the payment of the R112-million secured loan to WPRFU; the incorporation of the Newlands and Brookside DevCos; and the appointment of a board of directors for both companies. ‘Despite compliance by the Flyt Group with the agreements concluded, the WPRFU has inexplicably chosen to replace STBB as its legal advisors with a new litigation attorney, and has deliberately reneged on the transaction. The WPRFU has done so by now objecting to the agreed land value forming part of the substance of the transaction, and through its conduct is acting in flagrant disregard for the binding nature of the agreements. ‘It is important to point out that the land value agreed on was proposed by the WPRFU, not the Flyt Group. This value has subsequently been incorporated into the Newlands and Brookside DevCo’s that are co-owned by the WPRFU and the Flyt Group. To demand that the price be increased six months after the deal has been concluded is simply outrageous. https://highburyads.co.za/www/delivery/afr.php?zoneid=632&cb=INSERT_RANDOM_NUMBER_HERE" frameborder="0" scrolling="no" width="320" height="50" style="outline: none; -webkit-font-smoothing: antialiased;"> ‘The Flyt Group has taken comprehensive legal advice from senior counsel, and is assured of its rights under the agreements duly concluded with the WPRFU. Accordingly, the Flyt Group will now institute a claim for damages under the agreements as it is entitled to do. ‘The Flyt Group is in the process of quantifying its considerable damages which, in addition to its direct costs, will include the losses sustained as a result of the lost opportunity to develop both the Newlands Stadium and Brookside property as the parties intended. ‘The Flyt Group had looked forward to working with the WPRFU to co-develop the Newlands and Brookside properties and in this way support the Union’s commitment to bolstering rugby in poorer communities and ensuring a sustainable future for Western Province rugby. ‘However, If WPRFU fails to compensate the Flyt Group for its damages, it will have no choice but to approach the appropriate forum for relief to compel payment. This will include calling up the secured loans that the Flyt Group holds over the Newlands stadium and other properties.’ https://www.sarugbymag.co.za/wp-rugby-damages-claim/ |
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WitBoer
Koning Leeu Joined: 31-Mar-2016 Location: Bronkhorstsprui Status: Offline Points: 2162 |
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"Believe nothing, No matter where you read it, Or who has said it, Not even if I have said it, Unless it agrees with your own reason And your own common sense" - Buddha
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TunaLion
Koning Leeu Joined: 30-Mar-2016 Location: Ellis Park Status: Offline Points: 1803 |
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Kry vir julle.
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Go LIONS!!!!!
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TunaLion
Koning Leeu Joined: 30-Mar-2016 Location: Ellis Park Status: Offline Points: 1803 |
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Om dit nog als te kroon, gaan MVM definitief nie voort met die deal tussen hulle en WP nie.... American consortium MVM Holdings has confirmed it will cease negotiations with WPRFU and pursue other opportunities in professional rugby. CRAIG LEWIS reports. This follows the statement on Thursday from Flyt CEO Zane de Decker, who confirmed they will seek to claim ‘damages’ from the Western Province Rugby Football Union over reneging on an agreement signed in June 2020. In addition to this, it’s now been confirmed that the potential R100-million deal for a 51% stake in WP Rugby (Pty) Ltd will not go ahead. ‘Given the recent media speculation, we thought it was important to the players, coaches, management, sponsors and supporters of Western Province rugby to share that MVM Holdings has decided to cease negotiations with WPRFU and to pursue other opportunities in professional rugby,’ read a statement sent to SARugbymag.co.za from Marco Masotti, head of MVM, on Thursday. ‘We are enormously grateful for the time and resources made available to us by WPRFU while considering to invest in such an established professional franchise. We remain passionate about the development of the professional and amateur game in the Western Cape. ‘It has been an enormous privilege to get to know the many and diverse Stormers Faithful on our journey. We will continue to treasure the traditions and history of this incredible franchise. I will always be a fan of Western Province rugby and hope for the continued success of our beloved rugby game in the Western Cape.’ As reported by this website on Tuesday, MVM Holdings could now look to close an investment with the Sharks as a viable alternative, with discussions well under way to consider a shareholding in the Durban-based franchise. Meanwhile, in WP Rugby circles, the fallout could be significant considering a number of the Stormers’ senior players are widely reported to be unwilling to negotiate contract extensions until there is certainty about the financial security of the business wing. On Tuesday, Netwerk24 even reported that should the potential deal between American consortium MVM Holdings and the Sharks go through, someone such as Province and Bok captain Siya Kolisi – a high-profile Roc Nation representative – could be drawn to move to Durban. When addressing these rumours, WP coach John Dobson suggested it may just be ‘smoke’ at this moment, but did not entirely rule it out. ‘Siya is our leader. I literally asked Siya yesterday [Tuesday] if we need to have a chat and he said, “Let’s get through Friday”, which is the responsible and mature thing. I don’t think there is anything formal. There can be nothing formal until the contracting window starts. At this stage, I would think the Siya thing is just smoke.’ |
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Go LIONS!!!!!
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TunaLion
Koning Leeu Joined: 30-Mar-2016 Location: Ellis Park Status: Offline Points: 1803 |
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Player Exodus coming soon: "Meanwhile, in WP Rugby circles, the fallout could be significant
considering a number of the Stormers’ senior players are widely reported
to be unwilling to negotiate contract extensions until there is
certainty about the financial security of the business wing." Meeste van hulle kontrakte verstryk volgende jaar.
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Go LIONS!!!!!
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WitBoer
Koning Leeu Joined: 31-Mar-2016 Location: Bronkhorstsprui Status: Offline Points: 2162 |
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"Believe nothing, No matter where you read it, Or who has said it, Not even if I have said it, Unless it agrees with your own reason And your own common sense" - Buddha
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valie
Koning Leeu Joined: 02-Apr-2016 Location: ver van hier Status: Offline Points: 2681 |
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Kitshoff, Pieter Steph en JD Schickerling is spelers wat ek glad nie sal omgee om in n Leeu trui te sien speel nie. Die res, hoewel daar dalk n paar "groot name" tussen hulle is, was tot dusver maar below average.
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WitBoer
Koning Leeu Joined: 31-Mar-2016 Location: Bronkhorstsprui Status: Offline Points: 2162 |
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Kitshoff was nog altyd vir my baie goed, maar vir een of ander rede hou ek deesdae al hoe minder van hom. PSdT is my gunsteling speler, maar ek glo nie hy sal ooit die WP los nie, hy speel nie vir die geld nie...
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"Believe nothing, No matter where you read it, Or who has said it, Not even if I have said it, Unless it agrees with your own reason And your own common sense" - Buddha
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TunaLion
Koning Leeu Joined: 30-Mar-2016 Location: Ellis Park Status: Offline Points: 1803 |
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Ruhan Nel is seker maklik hul beste agterlyn speler deesdae en die enigste ander speler van hulle wat ek enigsins 'n bietjie respek voor het. Andersins is meeste van hulle maar over rated. Alhoewel ek dink Herschel Jantjies sal eintlik ook weer goed begin lyk by ons, want ek dink nie Weepee se spelpatroon pas enigsins sy styl nie.
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Go LIONS!!!!!
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