THE Minister of Sport Gayton McKenzie has called for the postponement of the SA Rugby Special General Meeting.
It was scheduled for October 17, Thursday in Cape Town.
This is not an interference by Govt, but its for the minister to be appraised on the controversial issue that is before us, as the country- the proposed deal to conclude a private equity investment in the sport’s commercial rights by US based investment firm Ackerley Sports Group.
And to worsen the situation, the deal is dangled around 20% which amounts to a lowly R1.3bn. Really, SARU?
Springboks are ‘serial’ world champs, they deserve better.
Reports suggest that New Zealand, signed a deal with another US-based investment firm Silver Lakes worth around 8.58%, that equates to R2.4 billion, a far cry of what is offered to Boks.
Hence today, some of the ‘big boys’ with huge cash reserves such as the Lions, Bulls, Sharks, Western Province, have also asked for Mark Alexander, SARU President and CEO- Rian Oberholzer to postpone Thursday’s General Council meeting where the unions were supposed to vote on the deal.
Seven out of Saru’s 14 member unions are opposing the ASG deal.
For this deal to go through, 75% of union members must vote and it seems unlikely.
Should ASG get thumps-up essentially it will be in control of the commercial rights of the Springboks – SA Rugby’s biggest cash cow, and we South Africans would have NO SAY…
The Economic Freedom Fighters (EFF) are against the deal after issuing statement, saying they are “appalled by SARU’s decision to sell 20% of the commercial rights of the Springboks for R1.3 billion”.
“This deal entrenches rugby as an exclusive, privately controlled sport, with Ackerley receiving a perpetual license to control SARU’s commercial rights and majority representation, despite its limited ownership stake,” the statement read.
The public has also weighed in, asking if this deal would benefit the executives at SARU, etc…?
And the minister is having none of it, hence the postponement of the SGM.
“We received the request from the minister this morning and we are happy to oblige, having shared the request with our member union presidents,” read a letter from SARU on the postponement.
“We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal,” Alexander was quoted.
The Minister said in his letter: “It is always important that levels of consultation and information sharing are adequate in matters such as these, especially when regarding matters of significant public interest.
“I would therefore like to humbly request that tomorrow’s scheduled meeting to decide on the way forward with your members be postponed so that I can be fully apprised of the particulars surrounding this proposed deal, or any deal that may be agreed to through your structures.”
Alexander said: “We look forward to providing any information the Minister may require.
“We believe that the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection. Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
A new date for the SGM before year-end will only be confirmed after the engagement with the minister.
ASG owns stakes in sporting franchises such as English football team Leeds United, NFL outfit San Francisco 49ers and NHL Seattle Kraken.
Image (Hold your horses. SARU President Mark Alexander is facing an onslaught from unions that are against the commercialization of Springboks).
