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SA Rugby have confirmed they are in talks with US-based Ackerley Sports Group (ASG) over a private equity sale in the shareholding of their commercial activities, as reports suggest a cash injection of $75m for the union.
SA Rugby confirmed on Wednesday they are nearing a deal that is scheduled to be presented to their 14 member unions for a vote at the organisation’s AGM on May 30.
“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 SA rugby,” SA Rugby said in a media release.
“This collaboration can position SA Rugby, the Springboks and, eventually, other teams for greater global prominence.”
SA Rugby, which has not revealed figures, added it had “agreed on the primary conditions” but that a finalised agreement has not yet been drawn up.
It also confirmed it will remain custodian of the Springbok brand.
“The Springboks and all national teams will retain their existing management and ownership models,” the release continued. “As national institutions, the Springboks and SA Rugby are not transferable to private equity.
“This strategy is about harnessing our commercial rights in partnership with an organisation and creating a separate entity dedicated to elevating our commercial profile.”
Several local media reports suggested the final figure would be around $75m.
ASG have owned all or a part of several professional sports franchises in basketball, ice hockey, soccer and rugby, and recently partnered with 49ers Enterprises to assume majority control of football club Leeds United.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
SA Rugby eyes $75m private equity injection
SA Rugby have confirmed they are in talks with US-based Ackerley Sports Group (ASG) over a private equity sale in the shareholding of their commercial activities, as reports suggest a cash injection of $75m for the union.
SA Rugby confirmed on Wednesday they are nearing a deal that is scheduled to be presented to their 14 member unions for a vote at the organisation’s AGM on May 30.
“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 SA rugby,” SA Rugby said in a media release.
“This collaboration can position SA Rugby, the Springboks and, eventually, other teams for greater global prominence.”
SA Rugby, which has not revealed figures, added it had “agreed on the primary conditions” but that a finalised agreement has not yet been drawn up.
It also confirmed it will remain custodian of the Springbok brand.
“The Springboks and all national teams will retain their existing management and ownership models,” the release continued. “As national institutions, the Springboks and SA Rugby are not transferable to private equity.
“This strategy is about harnessing our commercial rights in partnership with an organisation and creating a separate entity dedicated to elevating our commercial profile.”
Several local media reports suggested the final figure would be around $75m.
ASG have owned all or a part of several professional sports franchises in basketball, ice hockey, soccer and rugby, and recently partnered with 49ers Enterprises to assume majority control of football club Leeds United.
Reuters
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