in competition, the counsel for the SARU argued that there was no legally binding contract between the two parties. Following 5 Cape High Court orders in favour of the Spears over SA Rugby, on 4 August 2006, a High Court of South Africa ruling by Judge Dennis Davis, ruled with a cost order against SA Rugby, that the Spears had a valid and binding contract with SANZAR and SARU to compete in the Super 14 and Currie Cup. However, due to SA Rugby summarily terminating all payments to the Spears, it compounded the organisation's financial and administrative troubles and in November 2006 a settlement was reached that SA Rugby pay all legal costs. The Spears abandoned their legal case, and initially planned to continue to exist without competing in the Super 14. In spite of this hope, the organisation soon ceased to exist. New Port Elizabeth side In January 2009, the SARU announced that a new franchise in the South Eastern Cape region would be launched in June of that year to coincide with the arrival of the British and Irish Lions in Port Elizabeth for one of their midweek tour matches. The SEC franchise is to be launched with the goal of a future place in Super Rugby, but no timetable for its inclusion has been set. The Deputy President of the SARU Mark Alexander said "There is a desperate hunger for top-flight rugby in the South Eastern Cape and this is the first step to satisfying it", said Mr Watson. "There is much work to be done but the region has the resources and the capacity to deliver." He confirmed that the new franchise would not be known as the Southern Spears. Overview Following intense debates and an impasse, in April and May 2005, on the awarding of a Fifth South African Super 14 Rugby Franchise, the SA Rugby Presidents Council, on 8 June 2005, took a decision and issued a resolution, borne out of necessity, to strategically reposition South African rugby for the future and fast track rugby development and transformation, in the smaller and bigger unions respectively. The smaller unions require financial resources to fast track development, as they already have moved beyond transformation, whereas the bigger more financially powerful unions needed to fast track transformation, instead of "engaging" players from the smaller unions. References Notes http://www.epherald.co.za/herald/news/n10_16082007.htm https://web.archive.org/web/20070928123715/http://www.thespears.co.za/rel2703065.htm https://web.archive.org/web/20070928123700/http://www.thespears.co.za/pressroom.htm Sources "SEC now known as Spears". sarugby.co.za.