“We remain committed to working transparently and inclusively as we navigate this process. We thank our members for their engagement and feedback and look forward to presenting revised proposals that reflect our collective vision and goals in due course.”
Further advice on the process will be provided as it arises, he added.
The proposed deal had attracted much negativity, with the franchises leading the way in voicing their objections. Detractors of the deal warned SA Rugby would enter into a loan agreement that would place it under considerable financial strain. However, this is a point the governing body has been keen to dispel, reiterating SA Rugby only needs to repay once the new commercial entity turns a profit.
SA Rugby has been keen to stress the proposed deal with ASG wasn't just about the cash but the partners' ability to unlock commercial opportunity beyond SA Rugby's reach.
While ASG can prepare a revised bid before the end of the month, this is unlikely to sway provincial affiliates sceptical about the deal. It is from their ranks that a counter-bid is likely to emerge in the coming months.
Saru rejects equity proposal
Seven provincial affiliates shoot down the offer from American firm ASG
Image: Lee Warren/Gallo Images
The South African Rugby Union (Saru) on Friday rejected a proposal to accept a potential private equity investment in the sport’s commercial rights.
The proposal failed to reach the 75% majority required for such a transaction to be approved. Seven of the 13 member unions with voting rights opposed the proposal.
However, the Ackerley Sports Group (ASG) — which was identified by the members as the preferred bidder in December 2023 — has an exclusivity period until the end of 2024 to make a revised offer, should it want to.
“The input and perspectives shared by our members have been invaluable and we respect those perspectives,” said Saru president Mark Alexander.
“Our goal remains to secure a sustainable and prosperous future for South African Rugby, ensuring we continue to grow and succeed on the national and international stages.
Why SA Rugby may have to call it quits on equity and find a plan B
“We remain committed to working transparently and inclusively as we navigate this process. We thank our members for their engagement and feedback and look forward to presenting revised proposals that reflect our collective vision and goals in due course.”
Further advice on the process will be provided as it arises, he added.
The proposed deal had attracted much negativity, with the franchises leading the way in voicing their objections. Detractors of the deal warned SA Rugby would enter into a loan agreement that would place it under considerable financial strain. However, this is a point the governing body has been keen to dispel, reiterating SA Rugby only needs to repay once the new commercial entity turns a profit.
SA Rugby has been keen to stress the proposed deal with ASG wasn't just about the cash but the partners' ability to unlock commercial opportunity beyond SA Rugby's reach.
While ASG can prepare a revised bid before the end of the month, this is unlikely to sway provincial affiliates sceptical about the deal. It is from their ranks that a counter-bid is likely to emerge in the coming months.
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