Unions push back as US-based ASG refines approach to SA Rugby equity deal

By SABC Sport
7th January 2025

The US-based Ackerley Sports Group (ASG) is reportedly keen to combine with a South African consortium in its ongoing battle to acquire a stake in the commercial rights of SA Rugby.

ASG made an initial offer of 75 million (R1.4 billion) for a 20% stake in the governing body's commercial rights company. When announcing the proposed deal last October, SA Rugby chief executive Rian Oberholzer revealed that ASG were chosen as the preferred bidder by SARU's membership in December 2023.

However, ASG's initial offer was rejected by the majority of South Africa's provincial unions. For the proposal to be approved, a 75% majority had to be achieved in the vote in which 13 member unions took part. As it turned out, seven of the unions in question opposed the deal.

That specific deal had one last hope as ASG held an exclusivity period until the end of 2024 when they could have submitted a revised bid. They failed to do that though and no longer have exclusivity in negotiations with the South African Rugby Union (SARU).

Despite that setback, ASG still appears to be eager to invest in SARU's commercial rights and a letter from the US-based consortium is doing the rounds which states that: "ASG will, by deepening and expanding its own team, continue to participate in SARU's process of finding a world-class financial syndicate in the coming month.

"ASG intends to engage with any approved South African consortium going forward, and to work with a professional advisor to ensure that any future plan is effective and takes into account the needs of provincial unions."

ASG's initial proposal was heavily criticised with critics unhappy about the deal's financial structure, enormous commissions, and the lack of guaranteed funds.

Two opposing South African consortiums then came forward with proposals in which they also expressed interest in investing in the commercial interests of SARU.

The first consortium was from a group of franchise union shareholders. Billionaire Johann Rupert, Marco Masotti and Johan le Roux, who respectively hold controlling interests in the Bulls, Sharks and Stormers, were behind that offer.

Another consortium, Altvest Capital, focuses more on democratising the process and making ordinary South Africans shareholders.

The proposals from the two South African consortiums indicated that no money will be paid to third parties in terms of the offers they intend to make.