Equity deal pushback sets cat amongst the pigeons

11/21/2024 01:00 AM

UPDATE: The South African Rugby Union and Ackerley Sports Group did not expect the 'pushback' they have been getting against their proposed equity deal.

Now, new questions have been raised over, and doubt cast on, the planned vote to have the US$75-million (ZAR1.3-billion) approved on December 6.

@rugby365comcan confirm that the Portfolio Sport Arts and Culture Committee has asked SARU to appear before it to explain and provide details of the equity deal.

It is not the first time a government body stepped in, as objections about the credibility of ASG have been raised.

Last month SARU postponed a planned Special General Meeting to consider the proposed deal, at the request of Gayton McKenzie, the Minister of Sport, Arts and Culture.

Last Friday McKenzie consulted with the SARU leadership and the US-based Ackerley Sports Group in London.

There was a subsequent meeting in Johannesburg this past Monday - involving SARU, McKenzie and the South African franchises and unions - to provide an update.

While McKenzie took a nonpartisan stance, ASG came under fire in a meeting that lasted four hours and provided the local unions with little new detail.

It has been suggested the minister will 'support' the ASG proposal, but with the caveat that the consortium must contain SA-based investors.

Johan Rupert's Remgrow group and Springbok Schalk Burger (snr) are those who showed interest in being part of the local consortium.

McKenzie told @rugby365comthat he will release a statement upon 'finalization of the deal'.

"Discussions are still ongoing and have not been concluded," the minister said.

This has not stopped the Portfolio Sport Arts and Culture Committee from summonsing SARU's leadership to 'explain' and provide details.

SARU's appearance before the portfolio committee, originally planned for this coming Friday, has now been postponed till 'sometime next year'.

It appears the December 6 meeting will go ahead as planned, although there will no longer be a vote - given the pushback that has set the cat amongst the pigeons.

"The Portfolio Sport Arts and Culture Committee has learned in the news media about the discussions to acquire SARU's commercial rights," Chairperson Joe McGluwa told @rugby365com.

"A deal of such magnitude should be thoroughly considered as the Springboks should be seen as a national asset," he added.

"Our country is a sport-loving nation and as South Africans we all have an interest in the fate of rugby.

"The deal should be completely transparent and South Africans deserve to be fully informed."

He added he 'personally engaged' with SARU President Mark Alexander, who is abroad on World Rugby business.

SARU indicated they will only be able to have an answer on the deal after the December 6 meeting and will appear before the portfolio committee sometime early next year.

Alexander indicated to the Portfolio Committee that SARU is awaiting the 'final proposal' regarding the proposed equity transaction, which will allow them to provide 'informed input' to all stakeholders.

This 'final proposal' is expected to be received only after the December 6 meeting.

"Any discussions before this date would be premature and lack the necessary details for meaningful dialogue," Alexander said.

With Minister McKenzie present at this past Monday's meeting, he is well-informed on the progress of the deal.

@king365ed
@rugby365com

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