SARU to appoint independent financial advisors to secure rugby’s future

The South African Rugby Union (SARU) is set to appoint an independent financial institution to conduct a comprehensive review of the sport’s financial ecosystem, following a decision made at a General Council meeting in Johannesburg on Thursday.

This move comes after the failed private equity investment proposal by Ackerley Sports Group (ASG) in December, which did not receive the required 75% majority vote from SARU’s membership.

With a new mandate in place, SARU’s Executive Council and management will oversee the process of selecting financial advisors through an independent selection procedure. The goal is to assess rugby’s financial sustainability and determine whether a potential private equity investment could play a role in shaping the sport’s commercial future.

Independent Selection Process

SARU President Mark Alexander emphasised the importance of transparency and independence in appointing financial advisors.

The selection committee will include one representative from franchise unions, one from non-franchise unions, and two independent members of the Executive Council. Additionally, SA Rugby’s CEO and CFO will provide support in the selection process.

“We have been given a new mandate from the General Council to start a fresh process to review our commercial and financial prospects and define the next steps,” Alexander stated. “To ensure full confidence in the process, we will appoint financial advisors through an independent selection process.”

The review will provide SARU with strategic insights into the financial challenges and opportunities facing South African rugby. The appointed advisors will guide the union in evaluating commercial prospects, ensuring financial sustainability, and considering the role of private equity investments.

Financial Stability for the Future

Despite the challenges faced in securing private investment, SARU reassured members that the organisation’s financial stability remains intact. The highest level of financial distribution previously agreed upon, known as the gold model, has been guaranteed for the next three years due to a boost in commercial sales.

Alexander acknowledged that a financial loss would be reported for 2024, but he credited the work undertaken by SARU’s management team for strengthening the organisation’s commercial prospects. Strong commercial sales for 2025 have secured SARU’s financial outlook for the foreseeable future.

“We will take a measured and consultative approach under the guidance of financial advisers as we review our financial challenges and opportunities,” said Alexander. “Our goal is to ensure the long-term viability of South African rugby and provide financial stability for our members.”

The appointment of financial advisors marks a pivotal step in SARU’s ongoing efforts to secure the sport’s financial future. By engaging in a thorough and independent review process, SARU aims to develop a sustainable financial model that benefits all stakeholders in South African rugby.