SA Rugby’s touted equity partnership with Ackerley Sports Group (ASG) is reportedly still in the fundraising phase despite this week’s allusions of a done deal.
According to a report on News24, ASG actively seeks additional support for its proposed R1.4 billion investment in a 20% stake in SA Rugby.
In an official statement released on Wednesday, SA Rugby provided clarity on the state of negotiations with the American company.
SA Rugby president Mark Alexander, though, remains unfazed by the delay, stating this is standard procedure for such ventures.
“ASG is one of the companies that are part of the consortium that’ll be revealed to the members once their final offer is tabled,” he told News24. “They’re part of the group that is part of the San Francisco 49ers and Leeds United.
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“They’ll be doing exactly what they’re doing for those entities. Private equity, in its essence, doesn’t use its own money, but they’ll source it from various funds. From there, they put it into a vehicle and, like any business venture, they will have deliverables.”
The revelation adds to the scepticism surrounding ASG’s selection over established player CVC Capital Partners.
“CVC and ASG presented their value propositions. From there the members voted on it based on what they heard from both parties,” Alexander added. “The members chose to go to with ASG.”
The four major South African franchises have reportedly expressed concern over the hasty deal. SA Rugby’s members council reconvenes on March 13 for further discussions on the agreement.
Photo: Samuel Shivambu/BackpagePix
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Src: sarugbymag.co.za
