SA Rugby's Equity Deal Put on Hold Amid Concerns

South African Rugby has delayed a crucial meeting initially planned for discussing a private equity deal with the Ackerley Sports Group. The postponement follows requests from the sports minister and internal stakeholders, who are cautious about a 20% stake sale in involved commercial rights.

South African Rugby has postponed its Special General Meeting originally set for Thursday, intending to discuss a private equity agreement with United States-based Ackerley Sports Group (ASG), as per officials. The delay was recommended by South Africa's Minister of Sport, Gayton McKenzie, citing the need for more time to evaluate the deal that proposes investors take a 20% stake in SA Rugby's commercial rights company.

The decision may be timely as reports indicate numerous unions were poised to ask for additional time to assess the deal's implications. Current deliberations suggest that achieving the required 75% majority vote to pass the deal appears unlikely. Although the new meeting date remains undetermined, SA Rugby mentioned it would occur before year-end.

SA Rugby President Mark Alexander noted, "We believe the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection." His statement emphasized the partnership's potential to ensure the Springboks remain under SA Rugby's stewardship, thus safeguarding their future.

The proposed 20% stake in the commercial rights company has been reportedly valued at $75 million, although SA Rugby has not publicly confirmed this figure. Several unions, including those participating in the United Rugby Championship, are reportedly concerned about the valuation and the process leading to ASG's selection.

The exploration with private equity firms began in 2018, culminating with ASG being confirmed as the preferred partner in December last year.

(With inputs from agencies.)