A group of South African rugby stakeholders, led by billionaire Johann Rupert, is set to counter SA Rugby's proposed 71.5 million equity deal with U.S.-based Ackerley Sports Group ASG, raising concerns about the financial future of the sport.
Local investors rally against ASG dealThe deal, which would see ASG acquire a 20 percent stake in SA Rugbys commercial rights for R1.3 billion 71.5 million, has sparked significant opposition due to concerns over high commission fees and the financial structure. Schalk Burger Sr., representing smaller unions such as Boland, has called for greater transparency, emphasizing the potential risks to the sports future.
In response, a coalition of local investors, including Rupert, Marco Masotti, and Johan le Roux who hold stakes in major rugby franchises like the Vodacom Bulls, Sharks, and DHL Stormers, is preparing an alternative proposal. This counteroffer matches the 71.5 million valuation but eliminates commission fees, instead suggesting that a financial institution assess SA Rugbys funding needs. Ruperts cautious approach to large-scale investments, particularly in light of his recent 700 million wealth drop due to Richemonts valuation volatility, underpins this local-driven alternative.
Uncertainty ahead of the board voteThe growing divide among unions has created uncertainty ahead of the crucial board vote, which requires a 75 percent majority to pass. Some unions are questioning the long-term consequences of granting foreign investors a stake in the commercial future of SA Rugby. The counterproposal is expected to be presented to SA Rugbys board just days before the scheduled vote, setting the stage for a high-stakes showdown between local and international interests. Industry insiders suggest that this decision could be a pivotal moment for the financial independence of South African rugby.
