South Africa’s Minister of Sports, Gayton McKenzie, has urged SA Rugby not to accept the latest proposal from the US-based Ackerley Sports Group (ASG) to buy a 20% stake in the commercial interests of the Springboks.

In December last year, 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. However, seven of the unions in question opposed the deal.

At the weekend, it was reported that ASG still want to clinch a private equity investment deal with SA Rugby despite losing exclusivity rights over the deal in negotiations with the South African Rugby Union (SARU).

ASG keen to combine with a South African consortium

ASG’s exclusivity period for the initial deal expired the end of 2024 and they have indicated that they would like to combine with a South African consortium in their latest proposal to invest in SARU’s commercial rights company.

However, McKenzie is not in favour of ASG’s proposal and voiced his disapproval of the potential deal.

“This deal has divided South Africans and taken the gloss away from the on-field successes of the Springboks,” McKenzie told News24. “What has happened in the boardroom has taken away what the players have done.

“I think the time has come for us to move on.

“SA Rugby must find alternative sources of revenue and they must just kill this thing because it has caused a lot of unnecessary fighting, division, and strife.

“SA Rugby must think outside of the box and I have faith in SA Rugby’s leadership in terms of finding another alternative.”

Unexpected development from US-based company in SA Rugby’s private equity deal saga – report

Before the initial ASG deal was rejected by the provincial unions, two opposing South African consortiums also delivered 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, headed that offer.

Meanwhile, the proposal from the other consortium, Altvest Capital, focuses more on democratising the process and making ordinary South Africans shareholders.

Prefers proposal from the first South African consortium

McKenzie revealed that he has perused the proposal from the first South African consortium and feels it’s better than the ASG deal.

“I have seen another proposal, with my own eyes, from the Rupert group,” McKenzie said.

“It is better than the ASG proposal and I don’t think the Rupert group would bring a proposal and not bring it to SA Rugby.

“They must have given it to SA Rugby, but I have seen the proposal. I said the guys must come to the table, and I’ve seen the proposals.

“Those are esteemed businesspeople who have access to SA Rugby and must have spoken to SA Rugby.

“Guys must come together now because not even the unions are talking to each other.”

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Src: Planetrugby.com - https://www.planetrugby.com/news/gayton-mckenzies-blunt-verdict-on-sa-rugbys-private-equity-deal-with-us-investors