Mark Alexander (right), SARU President . Picture: Phakamisa Lensman, BackpagePix
In a groundbreaking move, SA Rugby is set to decide on a pivotal private equity investment that could reshape the financial future of the sport. This comes after years of deliberation and discussions with potential investors, with the Ackerley Sports Group (ASG) emerging as the preferred partner.
On Thursday, 17 October, SA Rugby’s General Council will convene for a Special General Meeting (SGM) to cast their votes on the proposed deal. If approved by 75% of the member unions, this partnership would see ASG take a 20% stake in a newly formed company that will manage SA Rugby's commercial rights.
SA Rugby will retain an 80% shareholding, ensuring that rugby's on-field activities, including the management of the Springboks, remain fully under their control.
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The pursuit of private equity investment dates back to 2018, when SA Rugby first explored the idea of partnering with investors. After the pandemic stalled discussions, the talks resumed in 2022, with CVC and ASG emerging as serious contenders.
By December 2023, after thorough presentations and evaluations, SA Rugby's member unions unanimously approved ASG as the preferred bidder.
The Seattle-based Ackerley Sports Group brings decades of experience in managing various sports franchises, including Leeds United, the Seattle SuperSonics, and the Seattle Kraken. Their involvement is seen as a step towards globalising the Springbok brand, improving SA Rugby’s commercial reach, and ensuring long-term financial stability.
This deal represents more than just an influx of cash. SA Rugby CEO Rian Oberholzer emphasised that the partnership is not merely a financial boost but also a strategic move to enhance SA Rugby’s global presence. The funds from this deal will be used to sustain rugby operations and improve its commercial appeal. This, in turn, will support national teams, including the Springboks, to maintain their competitive edge on the international stage.
Oberholzer has been clear about one point: The Springboks are not for sale. SA Rugby will retain full control over the management and operations of the national teams. The new entity, co-owned with ASG, will focus exclusively on the commercial side of the sport, including broadcasting, sponsorships, and events.
The final decision on the partnership will be made on October 17. Should the unions approve the deal, a formal agreement will be finalised in time for the 2024 Annual General Meeting scheduled for 30 May 2024. This will mark a historic shift in how South African rugby operates commercially.
With private equity investment becoming commonplace in global sport, SA Rugby’s move mirrors similar ventures in other countries like New Zealand. The hope is that this deal will secure the future of South African rugby, providing the resources necessary to compete on a global level both on and off the field.
Stay tuned for updates following the SGM on October 17, where the future of South African rugby could be redefined.