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.
Rugby365.com editor-in-chief Jan de Koning joins Clarence Ford.
Listen below.
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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
In a statement in February, the SARU said the deal offered an immediate financial boost and 'the expertise, networks, and resources necessary to enhance the commercial value of South African rugby.'
But rugby unions claim SARU will have to pay back the money.
"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.
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