Requirement for Drua to be privately owned – FBC News

0

Attorney General Aiyaz Sayed-Khaiyum clarifies that the Swire Shipping Fijian Drua is run by a private company due to the requirement imposed by the New Zealand Rugby Union.

He was responding to a question posed by MP Joseph Nand.

The Drua is operated by Counter Ruck PTE limited, a separate entity from the Fiji Rugby Union.

The article continues after the ad

Sayed-Khaiyum says this because NZRU requires a Super Rugby team not to be governed by a particular country’s rugby union itself, which is why Counter Ruck was created.


“The rationale, as I said, was to set up a separate private company to take the financial affairs of rugby union away from the Super Rigby team due to any financial failure that might arise. These competitions are hugely expensive and if that is to place an additional burden on rugby union, we could see the whole structure of this country crumble.

Another requirement is that the franchise have a minimum of $3 million in equity, maintenance of $1 million in cash at all times, and a strong business model that can support the team.

Sayed-Khaiyum adds that given the importance and economic benefit of the Drua to Fiji, the government has decided to become a shareholder.

The government did this by giving Drua $6 million and will get 51% of Counter Ruck shares.

Fijian Drua will face Moana Pasifika on Saturday at 4.35pm and you can watch it live on FBC Sports.


Source link

Share.

Comments are closed.