CAPE TOWN, SOUTH AFRICA - MARCH 12: SARU President, Mark Alexander during the South Africa national men's rugby team media conference at Newlands Southern Sun Hotel. Picture: Ashley Vlotman/Gallo Images.
Finding a new equity partner was reportedly not high on the agenda when Saru’s executive council met on Saturday.
In December, Ackerley Sports Group’s private equity bid – worth R1.4-billion for a 20% stake in SA Rugby’s commercial rights – failed to meet the 75% threshold it required, with seven of Saru’s 13 voting provincial unions against it.
One of the biggest reasons for this was the commission payable to third party, Jordan Associates. Saru initially said it was 15%, but later backtracked and said it would only be 2.5% to 3% and that it had budgeted for 15% in all transaction fees.
“They are looking for a reason not to investigate the ASG commission,” a provincial rugby boss told Rapport about Saru’s apparent U-turn. “If the investigation [by Ernst & Young into Saru’s handling of the matter] does not answer all the questions, the noise about the commission will never stop – and relations [between Saru and the unions] will never be restored.”
However, Saru must still give feedback to its executive council on Thursday about the other options on the table, according to Rapport.
A group including current franchises owners Johann Rupert (Bulls), Marco Masotti (Sharks) and Johan le Roux (Stormers) has reportedly made an offer to become SA Rugby’s equity partner, with Patrice Motsepe and Johan van Zyl of African Rainbow Capital now looking to join them.
This story was first published on sarugbymag.co.za. It is republished here with permission.
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