SARU equity deal takes another step forward

10/11/2024 06:17 AM

Mark Alexander, President of the South African Rugby Union (SARU), has thanked the member unions for the outcomes of the recent engagements with provincial rugby leadership during a national roadshow discussing a proposed equity transaction.

Alexander, CEO Rian Oberholzer, and a legal and financial team, have thus far engaged with the majority of SARU's regional unions as part of the consultation phase on the proposed agreement.

This roadshow follows three prior information sessions held in March, May, and June, serving as a precursor to the Special General Meeting (SGM) scheduled for October 17, where members will be asked to approve the deal.

In December, SARU management was mandated by members to negotiate an agreement with a consortium led by the Ackerley Sports Group (ASG) to acquire a 20% stake in SA Rugby's commercial rights company.

This entity will oversee sponsorship, broadcasting, events, branding, and licensing related to the sport. However, rugby affairs such as team management, coaching, contracting, and competition management will remain under SARU's jurisdiction.

Alexander added: "The primary purpose of the roadshow was to offer a detailed and comprehensive overview of the proposed equity transaction structure.

"Our goal was to ensure that all members fully understand the benefits, implications, and strategic rationale behind this important proposal.

"This transaction will strategically position the South African Rugby Union for growth, allowing us to explore new markets."

The ASG consortium brings extensive experience in sports team ownership and part-ownership, with a significant presence in American sports, including basketball and ice hockey.

Their portfolio also encompasses rugby and English football, where they have made notable contributions as owners. Furthermore, their strong business relationships with leading corporates provide a valuable opportunity to enhance and strengthen our commercial strategy.

"We are excited about the opportunities that this proposed equity transaction presents, as well as the network and expertise our new partners will contribute. Our engagements with South African membership during the roadshow have been productive and meaningful," he added.

"Together, we can build a stronger and more prosperous future for SARU. We remain committed to ensuring the long-term sustainability and stability of our organisation and this equity transaction represents a vital step in that direction.

"Most importantly, South African Rugby will not be selling any assets or the Springboks in any capacity to an equity partner. Instead, our commercial rights inclusive of the IP will be licensed to a separate entity that will manage and develop a robust commercial programme."

The SARU team will have their final sessions with Boland and SWD next week.