SA Rugby to Vote on Selling 20% Stake in Commercial Rights to Ackerley Sports Group
SA Rugby, the governing body of the world-champion Springboks, is set to vote on 17 October to sell a 20% stake in its newly-formed commercial rights company to the Seattle-based Ackerley Sports Group. This decision by SA Rugby’s member unions, initially scheduled for 30 May, marks a significant move aimed at capitalizing on the Springboks’ recent on-field success.
South Africa’s national men’s rugby team has achieved unprecedented success, winning a record four Rugby World Cup titles, including back-to-back victories in 2019 and 2023. They also recently secured the Rugby Championship trophy, solidifying their dominance as the best team in the Southern Hemisphere.
Springboks Lagging Behind All Blacks in Commercial Revenue
Despite the Springboks’ sporting achievements, their commercial income has not matched that of their rivals, the New Zealand All Blacks. The decision to seek private equity investment comes as SA Rugby aims to improve its commercial performance. According to Bloomberg, the All Blacks have financially outperformed the Springboks despite comparable on-field success.
SA Rugby CEO Rian Oberholzer described the deal as a turning point: “This is a watershed moment for rugby in South Africa as we attempt to ‘globalise’ the Springbok brand in the way that our peers in New Zealand have. Our performances on the field have kept us near, or at the front of the pack for several years, but we have been lagging off the field.”
The proposed deal values the Springboks’ commercial rights at $375 million (R6.6 billion). This move reflects a growing trend in rugby, where leading national teams are turning to private equity firms for additional revenue, allowing investors to diversify their risks by investing in federations and leagues rather than individual teams.
Ackerley Sports Group Chosen Over CVC Capital Partners
Seattle-based Ackerley Sports Group was chosen over Six Nations Championship investor CVC Capital Partners. Ackerley has an impressive history in sports investments, focusing on teams, leagues, media, venues, technology, and development. The Ackerley family has previously owned stakes in major sports teams, including the Seattle SuperSonics, Seattle Kraken, Seattle Storm, Seattle Seadogs, and Leeds United Football Club.
