South African Rugby (SA Rugby) is in discussion with US-based sports-focused private investment firm Ackerley Sports Group (ASG) over the sale of stake in its commercial activities for $75m, according to a report by Reuters.
SA Rugby confirmed on Wednesday it is closing in on a deal that is scheduled to be presented to its 14 member unions for a vote at the organisation’s annual general meeting on 30 May.
The organisation has moved swiftly to allay supporter fears that it is selling out by penning “An Open Letter to South Africa” in which it stresses that a deal will only be completed with the support of the member unions.
In the letter, Rian Oberholzer, CEO of SA Rugby, said: “There has been much speculation, misdirection and misunderstanding of what the purpose and practicalities of such an agreement involve. Let me put the record straight. If you take only one thing from this letter, let it be this: The Springboks are not being sold – not now and not ever.”
If the private equity deal is approved, it will entail the sale of a minority shareholding in the commercial rights to SA Rugby’s activities in a newly created commercial rights company (CRC), which will serve as SA Rugby’s commercial arm. The CRC will not be responsible for the management or selection of any national teams nor for the management of competitions.
“A private equity partnership offers not just an immediate financial boost but also crucially provides the expertise, networks, and resources necessary to enhance the commercial value of South African rugby,” SA Rugby said in a press release. “This collaboration can position SA Rugby, the Springboks and, eventually, other teams for greater global prominence.”
