The fate of Newlands Rugby Stadium could be decided when the Western Province Rugby Union’s executive board meets on Saturday.
Netwerk24 reports that the board – which includes all its clubs – will consider a formal sale agreement with a property developer. If approved, the transaction would allow the union to settle the bulk of its mounting debt, reportedly more than R260-million.
At the centre of the financial strain is Dream World Investment 401, a company linked to Flyt Property Investment. In 2020, Dream World loaned the WPRU R110.7-million to help the union repay debts to Remgro and Investec. As part of that deal, the union agreed to a 30% “development fee” on the loan amount, along with an initial fee of R1.265-million.
Those costs pushed the original obligation to around R145-million, with the figure increasing over time due to accumulated interest after earlier development plans between the WPRU and Flyt failed to materialise.
WPRU president Kevin Kiewitz confirmed the meeting would take place on Saturday.
“The list of terms [for a sale transaction] has previously been unanimously accepted. We will now share the formal agreement with the clubs and then they will have the final say,” Kiewitz told Netwerk24.
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While the exact value of the proposed sale has not been disclosed, estimates suggest it could fall between R225-million and R250-million.
Although the deal would not erase all outstanding liabilities, it is expected to provide the union with breathing room. At present, all WPRU property assets are tied up as security against the loan.