SA Rugby’s R1.3 Billion Deal with ASG Faces Unions’ Opposition
SA Rugby’s R1.3 billion private equity agreement with United States-based investment firm Ackerley Sports Group (ASG) is facing challenges after several of the country’s rugby unions and franchises raised concerns in a letter to the governing body.
Leading unions, including the Lions, Blue Bulls, Sharks, and Western Province, have urged SA Rugby president Mark Alexander and CEO Rian Oberholzer to delay Thursday’s General Council meeting, where the unions were set to vote on the deal.
Seven of SA Rugby’s 14 member unions are opposing the deal, which requires 75% approval to proceed.
If passed, the agreement would allow ASG to acquire 20% of SA Rugby’s new commercial entity.
Last December, SA Rugby presented ASG as their preferred equity partner after an extensive search.
Should the vote succeed, ASG would gain control over the Springboks’ commercial rights, which are a major revenue source for SA Rugby, and would seek further sponsorship investment for the team.
The Economic Freedom Fighters (EFF) have criticised the deal, calling it “appalling” and arguing it solidifies rugby as an “exclusive, privately controlled sport,” with ASG receiving a long-term license over SA Rugby’s commercial rights, despite its limited ownership.
In February, SA Rugby clarified that they were not selling the Springboks but aimed to elevate the sport’s global profile.
Despite efforts by Alexander and SA Rugby to visit the unions and explain the deal, it appears that not all of the unions are fully persuaded.