Bulls chief boosts SA Rugby equity hopes

11/24/2024 12:17 AM

The proposed equity partnership between SA Rugby and the Ackerley Sports Group (ASG) has gained significant traction, with Vodacom Bulls boss Edgar Rathbone reportedly playing a pivotal role in addressing a critical sticking point.

Last week, the agreement appeared to face an uphill battle, with only a 50% chance of securing the required 75% majority vote from SA Rugby's voting unions. However, a source close to the discussions now believes there is an 85% to 90% chance of success.

Central to this turnaround is Rathbone's innovative proposal to resolve the contentious issue of test match hosting fees.

According to Sunday newspaper Rapport, Rathbone suggested a framework for ASG to reimburse unions for the use of their facilities from 2025, should they host test matches. This development has reportedly swayed several unions in favour of the R1.3 billion deal, which would see ASG acquire a 20% stake in SA Rugby.

The final decision will be made on December 6 by SA Rugby's main board. 10 of the 13 voting unions must approve the agreement to achieve the required 75% majority. After recent meetings, it is believed that up to nine unions may already be on board, with further lobbying underway.

Further momentum was gained after ASG met with representatives from SA Rugby and the shareholder groups of the Bulls, Lions, Sharks, Stormers, and Cheetahs on Tuesday. The Cheetahs, included due to their advanced negotiations with ASG-linked equity partner Y11, were briefed on how joining the consortium could grant shareholders representation on the SA Rugby board.

Despite the positive developments, some administrators remain opposed to the deal.

One senior figure, who spoke to Rapport, revealed that alternative plans are being explored should the partnership fail. “A lot of water still needs to go into the sea,” another insider cautioned.

Photo: Vodacom Bulls

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