The future: financial ruin or a return to riches?

14 September 2014 - 02:31
By The Daily Telegraph, London
BEFORE THE STORM: Oscar at the 2012 Olympics
Image: REUTERS BEFORE THE STORM: Oscar at the 2012 Olympics

Oscar Pistorius left court on Friday inwardly delighted at his acquittal for murder - but outwardly, he claims, destroyed financially.

Before he shot dead Reeva Steenkamp on Valentine's Day last year, the 27-year-old told the court he was earning R5.6-million a year, although local sports agents had speculated the value to be four times that.

His fortune stemmed partially from prize winnings, but mainly from advertising contracts and endorsements, with Nike, fashion designer Thierry Mugler, BT, and Oakley sunglasses.

But his legal fees, and the cancellation of all his lucrative promotional contracts, have eaten into his fortune.

The trial, initially scheduled for only 39 days, dragged on over six months, at a cost of R100 000 per day.

In July the four-bedroom house was sold for R4.5-million - R500 000 less than its value - to a mining consultant, who said he plans to rent it out.

Pistorius also sold two town houses in Pretoria, and a piece of land in Langebaan, near Cape Town, which altogether were worth R8.3-million, he claimed.

But despite the Paralympian's self-professed financial struggle, his family is exceptionally wealthy.

The athlete, estranged from his father, has been living for 18 months with his uncle, 62-year-old businessman Arnold, in his three-storey mansion in the Waterkloof area of Pretoria.

Arnold Pistorius, along with his brothers Henke - Oscar's father - Theo and Leo, are thought to have been involved in 107 different companies over the years, in mining, tourism and property.

The family portfolio includes a private game reserve with breeding programmes for sable antelope and buffalo, a ski lodge in the Austrian resort of Hochkrimml, a mine in Limpopo and residential and leisure property developments in Mozambique and South Africa.

At the head of the family of entrepreneurs is grandfather Hendrik, who founded an agricultural limestone supply company, H Pistorius en Kie, in 1944.

On its website, the company boasts it is the oldest supplier of agricultural lime in Africa and one of the largest in South Africa. Hendrik, 95, remains the company chairman.

Oscar's father Henke, a mine owner, was not as successful as his brothers and was declared bankrupt when Pistorius was a child.

Yet however little of Pistorius's fortune he keeps, if he gets a prison sentence he will be far richer than most inmates.

"He's going to be a target [in prison] because of the money," said Laurie Pieters, a criminologist, adding that he may have to pay people to protect him.

And if he is allowed to return to competition, sponsors will not necessarily flock back to him.

John Taylor, a London-based sports sponsorship consultant, said major brands linked to athletes for their "halo effect" and Pistorius was "irreparably tarnished". "Pistorius had core values that brands liked - he overcame adversity and had tenacity," he said. "That's all gone out of the window now ... I don't think there is any way back for him."