Sara-Jayne Makwala King23 October 2024 | 11:42

SA Rugby is 'standing their ground' over deal with American private equity firm

The deal would leave US-based private equity firm Ackerley Sports Group with a 20% stake in SARU's commercial rights.

SA Rugby is 'standing their ground' over deal with American private equity firm

Rugby365.com editor-in-chief Jan de Koning joins Clarence Ford.

Listen below.

The Springboks and the South African Rugby Union (SARU) remain in limbo, as stakeholders are still undecided about a private equity partnership.

SARU is negotiating with US-based private equity firm Ackerley Sports Group (ASG) over a deal that would see ASG purchase a 20% stake in SARU's commercial rights.

The deal is valued at approximately $75m (about R1.3 billion) and aims to help SA Rugby grow internationally.

De Koning says unions claim there is not enough clarity and transparency around the deal's structure.

"The devil is in the details."
Jan de Koning, Editor-in-chief - Rugby365.com 
"The unions still claim the Springboks brand. The Springboks are undervalued."
Jan de Koning, Editor-in-chief - Rugby365.com  

Not only are unions unhappy with the money on the table, but they're also disputing the nature of the deal.

"The unions claim this is not an equity deal, but a loan agreement."
Jan de Koning, Editor-in-chief - Rugby365.com  
"The way the Ackerley Group is structured, SARU will be paying back this money and that back payment will come from SARU's profits."
Jan de Koning, Editor-in-chief - Rugby365.com  

Last week, Sports Minister Gayton McKenzie asked SARU to delay a meeting to vote on the deal so the government could be more fully briefed on the proposal.

Scroll up to the audio player to listen to the interview.