The South African Rugby Union (SARU) is on the brink of a major decision that could reshape the future of the sport in South Africa. A Special General Council (SGC) meeting of SARU's 14 full member unions is scheduled for Thursday, October 17, where a formal proposal will be presented that could secure significant private equity investment.
If the proposal gains approval from 75 percent of the voting membership, it will set in motion the creation of a new company that will manage SA Rugby's commercial rights.
A private equity firm, Ackerley Sports Group (ASG), will acquire a 20 percent stake in this new company, overseeing key aspects like sponsorship, broadcasting, event management, branding, and licensing.
This move would leave SARU responsible for the management of rugby affairs such as team selection, coaching, contracting, and competition management, while the commercial aspects of the sport would receive a significant boost from private investment.
Rian Oberholzer, CEO of SA Rugby, emphasised the transformative nature of this deal saying, “We are very pleased to have arrived at this point and believe we will be able to table an offer to our members that makes commercial and business sense. This is a watershed moment for rugby in South Africa as we attempt to ‘globalise’ the Springbok brand in the way that our peers in New Zealand have.”
The proposal is the culmination of nearly a year’s work, with ASG being selected as the preferred bidder in December 2023. The investment, according to Oberholzer, would not only bring financial security but also provide access to global expertise that would elevate SA Rugby’s operations and interactions with its stakeholders.
Oberholzer also acknowledged the importance of catching up with global peers:
“Our performances on the field have kept us near or at the front of the pack for several years, but we have been lagging off the field. This is our opportunity to catch up with our peers in that arena as well.”
Leading up to the SGC, SARU has already conducted a series of information sessions with member unions. Further visits are planned before the final decision on October 17 to address any concerns or uncertainties.
If approved, this deal will mark a new era for South African rugby, with private investment becoming a cornerstone of the sport’s commercial strategy, much like in other global sports leagues. SARU's decision will likely influence the direction of rugby in the country for years to come.
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