Lions, GUMA deal terminated

The shareholders agreement between the Lions and GUMA Tac has been terminated.

The website, wetalkrugby, confirmed via a press release by the Lions Rugby Union that the deal between the union and Guma has been terminated.

The Golden Lions Rugby Union today wishes to confirm that negotiations around the completion of the shareholders agreement with GUMA TAC has been terminated by GUMA TAC.

It is with deep regret that the Lions received this notification today as we as the Golden Lions Rugby Union saw the arrangement as a wonderful opportunity to embrace the new future for the Golden Lions in a vibrant new partnership.

“We have worked very long and very hard at the Union to deliver a workable final shareholders agreement” said Mr. de Klerk.  We were prepared to keep working on that process, but unfortunately the agreement could be concluded.

This is a sad day in many ways, but our first concern has always been for the well being and integrity of rugby in the Golden Lions region, and until all our concerns were settled the Union felt it difficult to proceed.

Mr. de Klerk said that he could not go into commercial details but explained that the Lions leadership focus had to be on ensuring the health of rugby at all levels in the Union – not just with the marquee elements of the Lions team and playing venue.

“Producing a trophy-winning MTN Lions team remains our top priority, but there’s always a danger that you can throw the baby out with the bathwater, and our duty as a Union is to promote and develop rugby at all levels in the Golden Lions region” said Mr. de Klerk.

Mr. de Klerk stressed that the dissolving of the arrangement would not have a negative impact on the team’s preparations for the ABSA Currie Cup and that the decision would free the Union from the negotiating table to concentrate on their core responsibilities.

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23 comments for “Lions, GUMA deal terminated

  1. Profile photo of Aldo
    June 28, 2011 at 3:45 pm

    Ouch, this isn’t good news. I was beginning to enjoy watching the Lions play. Will they now be able to hold onto the services of coach Mitchell and Carlos?

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  2. Profile photo of bryce_in_oz
    June 28, 2011 at 4:12 pm

    The Kings will be stoked… with a resurgent Cheetah’s and a BEE backed Lions their future fast-tracking into Super Rugby was not looking to flash…

    ReplyReply
  3. Profile photo of Ollie
    June 28, 2011 at 4:13 pm

    I’m curious to know the reason why they withdrew. Politics? Money? Project too ambitious?

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  4. Profile photo of Ollie
    June 28, 2011 at 4:14 pm

    Reply to bryce_shark_in_oz @ 4:12 pm:

    Gives weight to Mitchell’s comments about the management needing to sort itself out.

    ReplyReply
  5. Profile photo of Boertjie
    June 28, 2011 at 4:21 pm

    Reply to Ollie_ Shark Attack @ 4:14 pm:

    And getting their priorities right.
    Uniting behind the same goal.

    ReplyReply
  6. Profile photo of Ollie
    June 28, 2011 at 4:28 pm

    Reply to Boertjie @ 4:21 pm:

    Although, based on reservations aired here early on GUMA, maybe it is a blessing in disguise

    ReplyReply
  7. Profile photo of DavidS
    June 28, 2011 at 4:30 pm

    Reply to Ollie_ Shark Attack @ 4:13 pm:

    GUMA is just one of the BEE components. The other part of the consortium remains.

    This is not really a biggie…

    GUMA just wanted the whole of the consortium to have more than 50% shareholding which the Lions could not give…

    The MTN sponsorship is massive… and enough…

    ReplyReply
  8. Profile photo of Ollie
    June 28, 2011 at 4:41 pm

    Reply to DavidS the sort of hopeful Lion @ 4:30 pm:

    So you mean they got rid of the possible bad element without too much of a knock?

    ReplyReply
  9. Profile photo of Ollie
    June 28, 2011 at 4:41 pm

    Reply to Ollie_ Shark Attack @ 4:41 pm:

    Correction, one of the bad elements

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  10. Profile photo of Morné
    June 28, 2011 at 6:50 pm

    Now if this was France, the Lions would probably be kicked out of top level rugby to play in the Currie Cup second division for being R80-mil out of pocket.

    ReplyReply
  11. Profile photo of DavidS
    June 28, 2011 at 7:15 pm

    Ja, unfortunately the real bad element that bryce spoke of is still involved… Ivor something or other who made zillions out of the arms deal…

    ReplyReply
  12. Profile photo of bryce_in_oz
    June 29, 2011 at 3:48 am

    Reply to DavidS the sort of hopeful Lion @ 7:15 pm:

    Ivor Ichikowitz… as Spiv as they get…

    “Ivor Ichikowitz, the arms and oil broker who laid on his company jet to ferry Nelson Mandela to a Jacob Zuma election rally in Transkei, has made a career from turning political connections into profit… Ichikowitz (42) made a fortune selling surplus South African armoured vehicles into Africa and the Middle East, and seems to have manoeuvred his way into Zuma’s inner circle … Ichikowitz, who also represents controversial commodities trader Glencore, partnered Majali in his 2001 bid to supply Iraqi crude to South Africa under the controversial oil-for-food programme allowing limited trade with Saddam’s Iraq … In 2005 the M&G revealed Majali, with official ANC backing, intended setting up an oil trading operation intended to benefit the ANC and Saddam’s Ba’ath party … Ichikowitz’s other main business: selling reconditioned surplus South African military equipment into Africa and the Middle East.”

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  13. Profile photo of bryce_in_oz
    June 29, 2011 at 3:51 am

    Blood Diamond Wars, Genocide wars, Libya you name it… and then research Glencore’s history and Majali and other influential cabinet ministers right up to the President himself!

    ReplyReply
  14. Profile photo of mawm-the-ever-hopeful-shark
    June 29, 2011 at 7:45 am

    Reply to bryce_shark_in_oz @ 3:51 am:

    The Arms deal is a like a cancer in SA. It is a pity no one could expose the nascent corruption of the new goverment as it might have prevented a lot of what happens now.

    I suppose that selling all SA surplus military gear is not that much of a problem…..I hear that the SANDF doesn’t have very many able bodies (and minds) to operate the stuff. :whistling:

    ReplyReply
  15. Profile photo of bryce_in_oz
    June 29, 2011 at 8:21 am

    Reply to mawm-all sharked out @ 7:45 am:

    The ‘investigation’ into the ‘oil-for-food’ program created by Ivor and Majali between Hussein’s Baath party and the ANC was subsequently quashed in it’s tracks… did the Lions really want to be involved with guys like this?

    ReplyReply
  16. Profile photo of bryce_in_oz
    June 29, 2011 at 8:22 am

    Article for Dawie (read the comments at the bottom of it)…

    http://www.stuff.co.nz/sport/opinion/5204525/Kiwi-rugby-fans-must-stop-bleating

    ReplyReply
  17. Profile photo of DavidS
    June 29, 2011 at 12:39 pm

    Reply to bryce_shark_in_oz @ 8:22 am:

    Geez the dumb Boere are tools…

    We’re STILL on the “Aussies are sheep shaggers and Poms whingers and we love Kiwis cos they’re more like us” nonsense…

    With tools like that for fans I actually think we deserve to get refs that cheat us… the Kiwis must be laughing at us…

    ReplyReply
  18. Profile photo of mawm-the-ever-hopeful-shark
    June 30, 2011 at 12:35 am

    Reply to DavidS the sort of hopeful Lion @ 12:39 pm:

    Make no mistake, the Kiwi’s, fans and media, will denigrate SA whenever they can. I cringe whenever I hear a Bok say that playing the AB’s is the pinnacle of their career, a life-long dream, etc. They are still carrying on about only loosing in SA before isolation because the SA refs cheated.
    :Boertjie GOM:

    ReplyReply
  19. Profile photo of bryce_in_oz
    June 30, 2011 at 6:24 am

    Reply to mawm-all sharked out @ 12:35 am:

    Couldn’t agree more… and most my best friends are Kiwi’s… only a fair few will give the ‘Japies’ any credit when it’s due… on the rugby field that is…

    ReplyReply
  20. Profile photo of Asteroth's Limping Lions
    July 1, 2011 at 7:15 am

    Well this doesn’t bode well. If this is true Lions are fucked :(

    ohannesburg – The Golden Lions Rugby Union (GLRU) is totally bankrupt according to a document sent to GLRU president Kevin de Klerk by the GumaTAC Group.

    Debt of several millions of rands, including a loan of R30-million with ABSA that the GLRU has to pay back by Sunday, a claim of having to pay back around R14-million and the inability to pay salaries, are mentioned in the document.

    The document is part of the explanation by Robert Gumede and Ivor Ichikowitz of the Guma Group about why they have ended their partnership with the GLRU.

    http://www.sport24.co.za/Rugby/Former-partner-Lions-bankrupt-20110630

    ReplyReply
  21. Profile photo of Minora
    July 1, 2011 at 9:08 am

    Looks like the “Golden” Lions have killed the goose that laid the Golden Eggs…. :noshake:

    ReplyReply
  22. Profile photo of gsp27
    July 1, 2011 at 10:04 pm

    Lions should sell their S15 rights to the kings! Hahahaha

    ReplyReply
  23. Profile photo of bryce_in_oz
    July 2, 2011 at 6:06 am

    Reply to gsp27 @ 10:04 pm:

    Bit too late for that… no doubt Gumede and the Blood Diamond King did that with their stalling!

    ReplyReply

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