(Reuters) – South African Rugby Union (SARU) members voted against a proposed private equity investment deal from United States-based Ackerley Sports Group (ASG) on Friday, potentially paving the way for other investors to put forward offers from next year.
Seven of the 13 SARU member unions with voting rights opposed the proposal, which meant it failed to reach the required 75% approval to be passed.
It was reported that ASG were willing to invest $75-million for 20% of SARU’s commercial rights company, funds which president Mark Alexander said this week were badly needed to keep the organisation afloat.
ASG have an exclusivity agreement in place for the remainder of 2024 that could see them raise their offer.
“Our goal remains to secure a sustainable and prosperous future for South African Rugby, ensuring that we continue to grow and succeed on both the national and international stages,” Alexander said in a SARU media release on Friday.
“We remain committed to working transparently and inclusively as we navigate this process. We thank our members for their engagement and feedback and look forward to presenting revised proposals that reflect our collective vision and goals in due course.”
SARU initiated exploratory discussions with private equity firms in 2018 and confirmed ASG as the preferred partner in December last year.
Business Day reported on Friday that a group of four local companies – AltVest Capital, EasyEquities, 27four Investment Managers and RainFin – are interested in investing $372-million for up to 40% of SARU’s commercial rights.
The move to sell a stake in the commercial rights division has not been without controversy in South Africa and has received government scrutiny, with SARU confirming they would retain all decision-making rights around the Springbok brand.
South Africa have won a record four World Cups, including the last two.
The Springboks play in home stadia that could be sold out several times over given the soaring public interest in the team from a new generation of rugby fans.
(Reporting by Nick Said; Editing by Toby Davis)
Comments