Why have the Lions historically been so kark? It's Gauteng, the economic engine of the SA, surely money is not an issue. RAU and other structures surely allow proper sourcing of talent. Population is massive. Weak/inept/corrupt administration?
The problems started when Luyt and Laurie Mains left. There are a lot of variations to the story of what happened. The Lions were doing very well under Mains and the Cats played in two SR semi finals under him. But he and Luyt had serious differences and Mains walked out. Luyt was then worked out. Luyt saw the Lions as his own personal property and it had all kinds of implications, especially financially. When Luyt walked he walked away with a lot of money.
The union then started to fall apart. A very large sum of money was invested in Australia and this investment collapsed. The union lost a serious fortune.
The quality of administrators went downhill fast after 2002.
This is what happens where money is god. The Lions was the richest rugby body in the world in 2002. They very quickly lost that position after the Australian debacle. The Cats became too expensive to run with too many large unions sharing one slice. The teams involved fought over every penny causing huge rifts in the squad. Financially the Cats was a disaster for the Lions and Cheetahs. When the Lions still had cash to burn it didn't really matter but after 2002 the well dried quickly.
All went downhill until very recently. Kevin de Klerk started to stem the downward spiral and things started to pick up again. The 2011 CC win was proof of that. But then injuries hit the Lions squad very hard and they entered the 2012 SR season without 18 of their 2011 CC squad players. This lead to Mitchell getting axed as the players revolted against the very harsh military style training regime that they believed lead to the many injuries. This then lead to a very poor 2012 SR season which lead to their exclusion.
There is obvious much more to this. Much intrigue also depending on who you talk to.