South Africa: Private equity deal falls through after failed vote with member unions

The South African Rugby Union (SARU) faced a setback as a proposed private equity investment deal involving the sport’s commercial rights was rejected by member unions. The proposal required a 75% majority for approval during a vote with 13 unions participating. However, seven unions opposed the deal, leading to its failure.

The proposed investment was led by the Ackerley Sports Group, which retains an exclusivity period until the end of the year to submit a revised bid. SARU President Mark Alexander emphasized that the organization remains committed to ensuring a sustainable future for South African rugby. He acknowledged the input from the unions, stating that the feedback would help shape proposals that align with their collective vision. Alexander reiterated SARU’s dedication to transparency and inclusivity in its decision-making process, promising to present updated plans in due course.

 

Meanwhile, reports suggest that an alternative offer could be presented by a consortium led by billionaire Johann Rupert. Although this proposal was expected to be discussed at a recent meeting, no concrete details have emerged yet.

 

Additionally, during the meeting, Mary-Ann Musekiwa was selected as the female representative to the World Rugby General Council, marking a significant development in governance representation.

 

The rejection of the deal highlights the challenges SARU faces in balancing financial innovation with member union consensus, as it seeks to maintain and grow South African rugby on both national and international stages.

 

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