On Friday it was confirmed in a statement from SA Rugby, that the South African Rugby Union (SARU) resolved had rejected a proposal to accept a potential private equity investment deal in the sport’s commercial rights.

Seattle-based Ackerley Sports Group (ASG) seemed set to acquire a 20% stake in Saru’s commercial arm for an outlay in the region of R1.4 billion, but after numerous twists and turns, it’s now been confirmed that the proposal failed to reach the 75 percent 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 – 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 wish.

It also remains to be seen whether a reported alternative local investment proposal could now be considered.

SA RUGBY EQUITY DEAL TIMELINE:

  • 2018: SA Rugby initiates exploratory discussions with several private equity firms
  • 2019: The SA Rugby General Council, composed of its member unions, authorizes the Executive Council to formally begin negotiations with CVC
  • 2020-2021: The impact of the pandemic stalls conversations as the Springboks do not play a home test in front of fans for two years
  • 2022: The conversation resumes in earnest although the due diligence process proceeds at a slow pace.
  • 2023: Negotiations with CVC continue slowly. SA Rugby asks CVC to improve their post-Covid offer. During this time, several other potential investors express interest.
  • 2023: Discussions are held with multiple potential investors but, by year end, only CVC and newcomer Ackerley Sports Group (ASG) remain serious contenders.
  • 2023 (December 8): SA Rugby’s member unions unanimously approve ASG as the preferred bidder following presentations from both entities, which include details on the associated success fees and transaction costs. The members mandate management to present a formal offer to the Council for consideration
  • 2024 (March, May and June): Information sessions are held with all members unions, during which all questions are addressed. Additional sessions for smaller groups are planned.
  • 2024 (October): Further information sessions are held for members in five separate groups to thoroughly examine the proposal.
  • 2024 (16 October): A Special General Meeting postponed
  • 2024 (6 December): Private Equity proposal turned down by SARU members

“The input and perspectives shared by our members have been invaluable, and we respect those perspectives,” said Mr Mark Alexander, president of SARU.

“Our goal remains to secure a sustainable and prosperous future for South African Rugby, ensuring that we continue to grow and succeed on both the national and international stages.

“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.”

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Src: TheSouthAfrican.com - https://rugga.co.za/sa-rugby/full-timeline-as-r1-4-billion-sa-rugby-equity-deal-rejected/