Rugby’s equity deal likely deferred

SA Rugby’s much trumpeted equity deal D-Day on December 6 looks on course to being deferred.

On Saturday the organisation’s president Mark Alexander stressed that regardless of the outcome of a vote in which their members decide whether to accept or reject an equity partnership with the Ackerley Sports Group (ASG), it will be business as usual for SA Rugby.

“I know people put dates and times to this. Dates and times mean nothing. We will do a deal when we are ready and when we are happy. It is key that our members are comfortable with the deal. We will do things when the members are happy,” said Alexander in conciliatory tone.

He said if the proposed deal does not get the required 75% support from their members “the sun will rise again the next day”.

The proposed deal has been mired in controversy with several franchises and some unions airing their displeasure.

SA Rugby on Friday, in the shape of Alexander and CEO Rian Oberholzer, met with sport, arts and culture minister Gayton McKenzie in London to again appraise him of the broad strokes of the deal in which SA Rugby will part with 20% of their commercial programme for R1.3bn.

Alexander described it as a fruitful meeting. “He’s our guest to the rugby,” he said about the Springboks’ Test at Twickenham against England last night. “When we come here, we have guests, sponsors and the like and he’s one of the guests.

“We also briefed him about what has happened over the last couple of days. We’ve come out of World Rugby meetings and just kept him up to date with what’s happening. He listens and is open-minded. He’s here to provide support. If there are any changes we have to brief all our stakeholders, including sponsors.”

McKenzie would have reminded SA Rugby that they have options. He indicated he was aware of other offers, though those haven’t yet seen the light of day. SA Rugby has an exclusivity period with ASG, which precludes them negotiating with other parties until December.

While some might interpret McKenzie’s interest in the matter as him potentially imposing his will on proceedings, the minister will be careful not to overstate his case as that might be construed as meddling in the affairs of a federation. “It was actually quite jovial sometimes because he’s quite a character,” said Alexander about the tone of the meeting.

Alexander denied that SA Rugby were tied to the ASG proposal, saying it was up to the members to accept or reject the offer. “We will just leave it and go on,” he said in the event of the offer being rejected.

This is a major decision we are making as an organisation. We need to take our membership along on this. We will at the end of the day make sure everyone has had input

“This is a major decision we are making as an organisation. We need to take our membership along on this. We will at the end of the day make sure everyone has had input.”

He added that they were committed to removing possible risk for SA Rugby.

McKenzie was also due to have an engagement with a delegation from ASG on Friday. “This pivotal engagement session will deliberate on a proposed commercial rights deal for Springbok rugby that has the potential to inject more than R1bn into South African rugby,” his deparment said in a media release.

The release stated that McKenzie “will then have a meeting with the 14 rugby unions on November 18 2024”. And McKenzie said in the statement: “We need to ensure that South Africa attracts foreign direct investment, and that the Springbok brand grows and becomes more valuable globally. We also, however, need to ensure South Africans are part of an agreement — as critical to South African identity and patriotism.”

McKenzie added that he was aware of alternative offers from other parties, including a competing deal put together by a group of South Africans. “All of these things need to be considered to ensure Saru [the South African Rugby Union] has all the facts and continues to do good work to develop, grow, promote and protect South African rugby for generations to come.”