Springboks aim to follow All Blacks' lead off the field
10/10/2024 12:27 AM
In one week from today, on 17 October, the SARU Council will decide on a private equity investment that could have far-reaching ramifications for the Springboks.
A Special General Council (SGC) meeting of the 14 full member unions has been scheduled, at which a formal offer is planned to be presented for consideration.
“If the proposal receives a 75 percent majority of the voting membership, it will trigger the conclusion of an agreement for a private equity company to invest into a newly established company to hold the commercial rights of SA Rugby,” a statement read.
“The game's rugby affairs – such as the management, coaching, contracting and selection of all national teams as well as competition management – will continue to be the responsibility of SARU.”
The private investors will take up a 20 percent stake in an SA Rugby commercial rights company, which will manage and be responsible for the sponsorship, broadcasting, eventing, branding and licensing aspects of the sport.
According to various reports, the deal – should it be finalised – would result in an investment in the region of R1.32 billion ($75 million).
However, some aspects of the negotiations have been met with questions and resistance from local franchises, and a big question has revolved around how it will impact the local game, and whether it would all be positive.
The Springboks’ brand is at the forefront of considerations
The SGC will be the culmination of months of intense work behind the scenes since the Ackerley Sports Group (ASG) were chosen as the preferred bidder by SARU's membership in December 2023.
Rian Oberholzer, the CEO of SA Rugby, also explained that the organisation hoped to take the Springbok brand to another level.
"We are very pleased to have arrived at this point and believe we will be able to table an offer to our members that makes commercial and business sense," said Rian Oberholzer, the CEO of SA Rugby.
"This is a watershed moment for rugby in South Africa as we attempt to 'globalise' the Springbok brand in the way that our peers in New Zealand have.
"Private investment will bring financial security as well as the capital investment and global experience and networks to enhance how we communicate, how we do things and how we interact with our stakeholders."
A series of information sessions have already been held with members and Oberholzer said that a series of visits to member unions would be undertaken before 17 October to further explain any areas of uncertainty.
"Private investment has taken place in several of our member unions and is commonplace in global sport," said Oberholzer.
"Our performances on the field have kept us near or at the front of the pack for several years, but we have been lagging off the field. This is our opportunity to catch up with our peers in that arena as well."
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