The South African Rugby Union (SARU) has posted a shortfall of about R130 million during the past financial year.

SARU presented its annual report before Parliament’s Portfolio Committee on Sport and Recreation.

The rugby union says it has suffered many setbacks over the past few years including the resignation of key Springbok captains and the retirement of key players in a short space of time.

SARU President Mark Alexander says the major setback has been the loss of the rugby world cup bid for 2023 which cost the union R38 million in 2017.

Alexander says the pulling out of major sponsors has been a decisive factor in putting the union into financial doldrums.

SA Rugby generates 85 percent of its income through sponsorship and broadcast rights.