SA Rugby Receives New Equity Partnership Offer from Local Stakeholders
SA Rugby is set to announce a new proposal for an equity partnership involving Johann Rupert, Marco Massotti, and Johan le Roux, influential shareholders in the Bulls, Sharks, and Stormers respectively. The trio has joined forces to negotiate with the governing body, marking a significant development in SA Rugby’s ongoing efforts to secure a commercial partnership.
Background and Previous Negotiations
SA Rugby has been actively seeking an equity partner, previously engaging in discussions with international entities such as CVC, which holds stakes in major competitions like the Six Nations and United Rugby Championship, as well as the U.S.-based Ackerley Sports Group (ASG).
ASG emerged as the preferred partner after initial evaluations, proposing a $75 million deal. However, the arrangement was rejected in December following a vote by provincial unions, sparking internal dissatisfaction and public scrutiny. Despite this setback, ASG remains interested in securing a stake in SA Rugby’s commercial rights.
New Offer and Tensions Within SA Rugby
According to reports, SA Rugby will present the latest offer from Rupert, Massotti, and Le Roux to its executive board on February 6. The upcoming meeting is anticipated to be contentious, particularly given lingering frustrations over the collapse of the ASG deal.
One source of controversy revolves around allegations of a 15% commission tied to the ASG transaction, reportedly demanded by former Formula 1 boss Eddie Jordan. Jordan, however, has denied these claims, stating that his involvement would have warranted a fee of no more than 2.5% to 3%.
SA Rugby’s provision for a maximum 15% allocation to cover transaction-related expenses has been cited as a possible source of the confusion. Despite Jordan’s denial, some rugby administrators remain skeptical.
Internal Fallout and Calls for Accountability
The fallout from the ASG deal has left SA Rugby in a precarious position, with union representatives calling for transparency and accountability. One administrator described the situation as a “messy story,” while another voiced concerns about potential dishonesty, stating:
> “If Eddie says 3.5% and SARU says 15%, then someone is lying. If this isn’t addressed, there could be a motion of no confidence in the entire executive council.”
SA Rugby President Mark Alexander faces mounting pressure to resolve the issue and restore trust within the organization.
Outlook and Stakeholder Hopes
While the turmoil has cast a shadow over SA Rugby, there is hope that the new offer from Rupert, Massotti, and Le Roux will bring stability and long-term growth. Stakeholders remain optimistic that this partnership will help the governing body navigate its challenges and enter a new era of financial and operational success.
The February meeting will be critical in determining the next steps for SA Rugby as it seeks to finalize a deal that balances commercial viability with the sport’s integrity and growth in South Africa.