Sports minister Gayton McKenzie wants more time to consider proposal for private equity firm ASG to buy 20% stake in Saru’s commercial rights
16 October 2024 - 17:24
by Nick Said
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 has postponed a special general meeting that was to be held on Thursday for unions to vote on a private equity deal with US-based Ackerley Sports Group (ASG), officials said.
The request for a postponement was made by sports minister Gayton McKenzie, who asked for more time to consider the merits of the deal that would see investors take a 20% stake in SA Rugby’s commercial rights company.
The postponement may be opportune for SA Rugby. Business Day reported on Tuesday that seven of the 14 unions were opposed to the deal and had requested more time to consider its merits. The proposed deal requires 75% of votes in favour to proceed.
A new date for the meeting hasn’t been set, but SA Rugby suggested it would be before the end of the year.
“We believe the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection,” SA Rugby president Mark Alexander said on Wednesday.
“Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
It has been reported that the 20% stake in the commercial rights company was valued at $75m, though SA Rugby hasn’t disclosed the amount.
Several of the member unions, including those who play in the United Rugby Championship, reportedly feel the figure is too low, and have expressed misgivings about the process to appoint ASG.
SA Rugby started talks with private equity firms in 2018 and confirmed ASG as the preferred partner in December 2023.
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 postpones vote on Boks deal
Sports minister Gayton McKenzie wants more time to consider proposal for private equity firm ASG to buy 20% stake in Saru’s commercial rights
SA Rugby has postponed a special general meeting that was to be held on Thursday for unions to vote on a private equity deal with US-based Ackerley Sports Group (ASG), officials said.
The request for a postponement was made by sports minister Gayton McKenzie, who asked for more time to consider the merits of the deal that would see investors take a 20% stake in SA Rugby’s commercial rights company.
The postponement may be opportune for SA Rugby. Business Day reported on Tuesday that seven of the 14 unions were opposed to the deal and had requested more time to consider its merits. The proposed deal requires 75% of votes in favour to proceed.
A new date for the meeting hasn’t been set, but SA Rugby suggested it would be before the end of the year.
“We believe the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection,” SA Rugby president Mark Alexander said on Wednesday.
“Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
It has been reported that the 20% stake in the commercial rights company was valued at $75m, though SA Rugby hasn’t disclosed the amount.
Several of the member unions, including those who play in the United Rugby Championship, reportedly feel the figure is too low, and have expressed misgivings about the process to appoint ASG.
SA Rugby started talks with private equity firms in 2018 and confirmed ASG as the preferred partner in December 2023.
Reuters
Saru presses ahead with Boks deal
Former F1 boss central to deal to sell Boks’ commercial rights
READ HERE: Explosive letter takes aim at dubious Saru deal
EDITORIAL: Something rotten about SA Rugby deal
EXCLUSIVE: How Saru plans to sell out the Springboks
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Former F1 boss central to deal to sell Boks’ commercial rights
Saru presses ahead with Boks deal
READ HERE: Explosive letter takes aim at dubious Saru deal
EDITORIAL: Something rotten about SA Rugby deal
EXCLUSIVE: How Saru plans to sell out the Springboks
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.