The South African Rugby Union (SARU) has reassured stakeholders that a proposed R1.3 billion private equity deal with an American sports company will not result in the sale of the Springbok brand.
SARU boss Mark Alexander emphasized that the deal, which involves licensing intellectual property to the Ackerley Sports Group in exchange for a 20% stake, is necessary to inject much-needed funds into the sport. Alexander warned that professional rugby in South Africa is on the brink of collapse without urgent financial intervention. The deal, he said, will provide a vital lifeline to cash-strapped provincial unions.
SARU CEO Rian Oberholzer echoed Alexander’s sentiments, stating that the union cannot sustain its Rugby World Cup success without generating additional income.
SARU CEO Rian Oberholzer. Image Source
While SARU has sought to alleviate concerns about the deal, some details remain shrouded in secrecy due to confidentiality agreements. The union has, however, assured stakeholders that the equity partner will not be able to extract funds until SARU’s baseline budget has been met. Provincial rugby unions are set to vote on the deal on Friday, which will determine the future of South African rugby.
