SA Rugby Partners with Ackerley Sports Group to Enhance Commercial Profile, Not to Sell Springboks

In a landmark move for South African rugby, SA Rugby has unveiled its plans to enter into a commercial partnership with the Ackerley Sports Group (ASG), an American sports company. This strategic collaboration aims to inject capital into the rugby union's commercial endeavors without compromising the integrity or ownership of the renowned Springbok national team and other national teams under the SA Rugby umbrella.

Contrary to fears of privatization of the national teams, SA Rugby asserted that the essence and management of the Springboks would remain unchanged. The federation reiterated that national teams like the Springboks are interwoven into the nation's fabric and are thus beyond the scope of private equity or transfer.

The thrust of the partnership lies in creating a new commercial entity that will strategically administer SA Rugby's commercial rights, with ASG poised to acquire a certain shareholding in this entity. The objective is to push for an enhancement of SA Rugby's commercial standing globally while ensuring that annual fees from this entity sustain the current operations of the union. Such operations include player remuneration and providing essential funding to its affiliated unions.

In December, at their Annual General Meeting (AGM), the members of SA Rugby, including those owning franchises, made a collective decision to advance with Ackerley Sports Group's offer. This decision was made subsequent to comparing it with alternative proposals. ASG's proposition was favored for its direct financial benefits and the lower risk presented by their guaranteed income and simplified contingency thresholds.

One significant assurance given by SA Rugby is that the new commercial entity will remit an annual fee that will comprehensively cover the operational expenses of SA Rugby. This approach, aiming for sustainability, is targeted towards balancing immediate financial needs with the long-term ambitions and strategic goals of SA Rugby.

SA Rugby announced that before reaching a conclusion, the proposed structure for the post-deal phase would undergo a thorough review with the member unions. This consultation process is expected to ensure that the needs and concerns of all stakeholders are taken into account.

As the process of establishing the equity partnership nears fruition, SA Rugby anticipates a conclusive proposal ready to be laid before the member unions at the next AGM. Scheduled for May 30, the upcoming meeting will be a pivotal moment, as members will be called upon to either give their nod of approval or to reject the proposed partnership with ASG.

This development comes amidst a global trend of sports entities seeking strategic financial partnerships to bolster their commercial avenues. SA Rugby's openness towards this trend demonstrates its commitment to securing and expanding the financial foundation of the sport within the country, while keeping the sport's integrity and traditional ownership models intact.