SA Rugby postpone special meeting about equity deal

SA Rugby have postponed a planned Special General Meeting (SGM), scheduled for Thursday, to consider a proposal to conclude a private equity investment in the sport’s commercial rights at the request of Gayton McKenzie, the Minister of Sport, Arts and Culture.

The meeting will now be rescheduled at the minister’s request to more fully brief government on the proposal.

SA Rugby have sought an equity partner in a new company to handle the commercial affairs of the rugby body. Ackerley Sports Group, based in Seattle in the USA, were selected as the preferred partner by SA Rugby.

According to Sport24, Ackerley are in line to gain a 20% stake in the commercial company for an outlay of R1.3 billion.

Request to postpone vote

Thirteen member unions, or provinces, were scheduled to vote on the deal on Thursday. Western Province were not allowed to vote because they are under administration, according to Beeld.

Ten of the 13 unions would have to vote in favour of the deal for it to get the go ahead, however according to the publication the rugby bodies of KZN, the Bulls, Lions, Griquas and the Cheetahs have opposed the deal, citing, among other things, concerns about commission that a third party will earn to broker the deal.

“We received the request from the minister this morning (Wednesday) and we are happy to oblige, having shared the request with our member union presidents,” said Mark Alexander, president of the South African Rugby Union (Saru).

“We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal.”

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The Minister said in his letter: “It is always important that levels of consultation and information sharing are adequate in matters such as these, especially when regarding matters of significant public interest.

“I would therefore like to humbly request that tomorrow’s scheduled meeting (Thursday’s meeting) to decide on the way forward with your members be postponed so that I can be fully apprised of the particulars surrounding this proposed deal, or any deal that may be agreed to through your structures.”

Alexander said: “We look forward to providing any information the minister may require.

“We believe that the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection. Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”

A new date for the SGM before year-end will only be confirmed after the engagement with the minister.