Americans earlier this week were informed about the state of their union and much of it would have resonated with the top brass at the SA Rugby Union (Saru).

The state of their unions, or provincial affiliates, is not dissimilar to that of the average American who is counting the cost of gross overspending, exposure to competitive overseas markets and the failure to decisively tackle the disparity between the rich and poor.

Simply put, most provincial unions live far beyond their means.

"Many provinces contract players they cannot afford because they think they can win the Currie Cup, and that is simply not realistic," said SA Rugby Players' Association chief executive Piet Heymans.

It has reached the point where, in some instances, the previously advantaged, such as the Lions, have been reduced to the same hand-to-mouth existence of the minnows.

The Lions, however, have taken remedial steps and have significantly reduced the number of contracted players who have contributed to a salary bill that gobbled around 80% of their budget.

While the Griffons only spend what they can afford, too many of Saru's affiliates seemingly remain oblivious to oncoming peril.

Boland, Southwestern Districts, Border and Eastern Province have recently faced the most dire financial prognosis, while Griquas and Mpumalanga have had to deal with the spectre of the taxman.

Griquas have come clean but the Pumas, who reached a settlement agreement with Sars in 2009, are again deemed "non-compliant".

The Sunday Times understands that Mpumalanga Rugby Union and their subsidiary, Van Riebeeck Stadium (Pty) Ltd, collectively owe Sars around R6-million. Most of the outstanding funds relate to the non-transfer of PAYE to Sars.

Attempts to get comment from CEO Koos Kruger were unsuccessful.

While the Lions have been forced to trim the fat, Western Province have kept their numbers steady.

"Western Province is in rude health," one administrative heavyweight insisted without elaborating.

Western Province may even argue for an increase in player numbers after having to call on seven flyhalves last season.

Until recently, the Eagles threatened to implode under the weight of creditors and vicious infighting. Saru dispatched former CEO Johan Prinsloo as peacemaker, bridge builder and bean counter.

"It is the easiest thing in the world to sign a cheque. You have to stay within your means," said Prinsloo, who said his blood pressure had dropped since moving to the foothills of the Outeniqua Mountains. "When you're at a smaller union you don't spend a cent without carefully considering it.

"We are busy repaying our debt. We're in a good space compared with where the union were for most of 2010 and 2011."

Prinsloo said unions would have been in much better financial shape had they heeded earlier warnings. "Saru commissioned a report on the financial state of affairs among their affiliates in 2004. The report then warned of the consequences unions faced if they were not managed properly. Unfortunately, it was never implemented," said Prinsloo.

That report received the same dim view turkeys have of Christmas. "It is about sustainability. You must cut your coat according to your cloth," said report co-author Blue Bulls chief executive Barend van Graan.

"You can't save yourself rich and by the same token, you can't buy a winning team. Strike a balance."

Harold Verster, until recently the longest-serving provincial president, believes the unions should find a way to self-regulate. "I think unions should try to agree on a salary cap," said Verster, now Cheetahs Company CEO.

He said the Cheetahs were doing well but that last year they appeared to be on the road to ruin before a major car manufacturer offered them a ride in the opposite direction.