In another addition to Western Province Rugby Football Union’s catalogue of incompetence, the company that loaned it R112-million as part of a deal for the development rights to Newlands Stadium is set to institute legal action against the union.
In the past year, the Western Province Rugby Football Union (WPRFU) has been a case study in how not to run a business.
On Thursday, Flyt Property Investment, the company the WPRFU courted after it reneged on an agreement with Investec to redevelop Newlands, formally declared a dispute with the union.
Hours later, the New York-based MVM consortium, which offered to buy a 51% equity stake in the professional arm of the union for $6-million (R100-million), formally withdrew its interest. It is understood it will move on to the Sharks.
“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 from MVM’s lead investor, Marco Masotti.
That was the least of the blows WPRFU suffered on the day, considering president Zelt Marais had stonewalled MVM for…