All South African rugby stakeholders have jointly confirmed pay cuts and other economies to offset up to R1.2bn from the sport’s budget by the end of the year.

The plan was collectively designed and concluded by organisations representing SA Rugby, the 14 provincial unions, players and rugby industry employees.

The economies will be achieved by reduced expenditure following the cancellation of competitions (which amounts to 49.7% of savings), cuts in other operational budgets (37.3%) and in salary reductions (13%).

ALSO READ: Sharks ‘relieved, happy’ to keep stars

The plan was formulated and agreed by to bodies representing SA Rugby, MyPlayers (the players’ representative organisation), Sport Employees Unite (employees’ trade union) and the South African Rugby Employers’ Organisation (SAREO – representing the provincial unions).

The salary cuts amount to 25 percent of total remuneration across the industry, including all employees, players and officials although persons earning below R20,000pm have been exempted from any cuts. Higher earners have agreed to cuts on a sliding scale of up to 43%.

ALSO READ: Bulls bring back Botha

‘It was a complex process to find alignment with a number of entities representing 1 396 people in the South African rugby industry but throughout everyone collaborated fully,’ SA Rugby CEO Jurie Roux said.

‘The group identified our collective areas of financial risk and what savings had to be made and then identified a plan to mitigate those risks.

‘It has meant salary cuts for many, but we have put together a plan that will ensure the industry will be positioned and resourced to get straight back to action just as soon as we are permitted.’

Photo: Grant Pitcher/Gallo Images