SA Rugby has released a statement regarding the ongoing discussions and current state of a potential partnership with an American private equity firm.
On Wednesday, SA Rugby provided insights into the ongoing discussions and the current state of a potential partnership with an American private equity firm. This statement aims to clarify recent news, leaks, and the resulting speculation surrounding this matter.
The potential deal is reportedly valued at $75 million (approximately R1.42 billion).
What’s the current situation? SA Rugby has received interest from private equity firms looking to acquire a stake in the commercial activities of the sport.
Why consider such a deal? Partnering with a private equity firm offers not only a significant immediate financial injection but also access to valuable expertise, networks, and resources. This can significantly enhance the commercial appeal of South African rugby, potentially elevating SA Rugby, the Springboks, and other teams to greater international prominence.
Who are you in discussions with? The preferred party is Ackerley Sports Group (ASG), an American entity that extends from an investment firm founded in 2002 by brothers Ted and Christopher Ackerley. Ackerley Partners has had ownership interests in a variety of professional sports teams across American basketball, ice hockey, soccer, and rugby and recently partnered with 49ers Enterprises to take majority control of Leeds United Football Club.
Why ASG? ASG was unanimously selected by SA Rugby members, including the franchise-owning unions, at a General Meeting on 7 December 2023 after presentations from ASG and another bidder, CVC. ASG’s proposition, focusing on immediate financial benefit and guaranteed income with lower contingency thresholds, was seen as offering a clear, advantageous commercial partnership. The final decision will be based on aligning immediate financial needs with the long-term strategic goals of the rugby organization.
Is the deal confirmed? No, further discussions have been authorized. Although primary terms are agreed upon, detailed negotiations are underway to finalize specifics. Final approval awaits comprehensive member briefing and consent, pending agreement on the finer points by our 14 members.
Who needs to approve it? Approval is exclusively in the hands of SA Rugby’s member unions, the sport’s shareholders. Their consent is essential.
When will details be shared? Detailed proposals for the new company and its relationship with SA Rugby are being developed. Once ready, workshops and information sessions will enable member unions to thoroughly examine the deal.
Does this mean selling the Springboks? No, the Springboks and all national teams will maintain their current management and ownership structures. The Springboks and SA Rugby, as national institutions, will not be transferred to private equity. This strategy involves leveraging commercial rights through a partnership, creating a separate entity focused on commercial elevation.
How will the Springboks be financed? The newly formed commercial entity will provide an annual fee covering all SA Rugby operations, from Springboks’ expenses to union funding.
What are the next steps? A proposed structure for the post-deal scenario will be developed and shared with member unions for feedback. Speculation is avoided until a definitive structure is proposed.
Is there a deadline for approval? A final proposal is expected to be presented to members at the Annual General Meeting on 30 May 2024 for approval or rejection.
About Ackerley Sports Group
Formed in 2023 by Christopher and Ted Ackerley of Ackerley Partners, LLC in Seattle, WA, and their London-based partner, Timothy Kirkwood, Ackerley Sports Group focuses on investments in the sports sector, including leagues, teams, venues, media, technology, and development opportunities.
