SA Rugby, the governing body behind the reigning world-champion Springboks, will vote on 17 October to sell a 20% stake in a commercial rights company to Seattle-based Ackerley Sports Group.
This vote by SA Rugby’s member unions, which had initially been scheduled for 30 May, represents a pivotal moment in the organisation’s efforts to capitalise on the Springboks’ on-field successes.
South Africa’s national men’s rugby team has won a record four Rugby World Cup titles. This includes back-to-back titles in 2019 and 2023. The Springboks also recently clinched the Rugby Championship trophy – giving them bragging rights as the best team in the Southern Hemisphere.
Boks have attracted less commercial income than All Blacks
The decision to explore private equity investment comes as SA Rugby seeks to enhance its commercial performance, especially in comparison to rival teams such as New Zealand’s All Blacks.
The All Blacks have outperformed the Springboks financially, despite similar levels of sporting success, writes Bloomberg.
“This is a watershed moment for rugby in South Africa as we attempt to ‘globalise’ the Springbok brand in the way that our peers in New Zealand have,” CEO of SA Rugby Rian Oberholzer said.
“Our performances on the field have kept us near, or at the front of the pack for several years, but we have been lagging off the field.”
The proposed deal values the Springboks’ commercial rights at $375 million (R6.6 billion).
The deal is part of a broader trend in rugby, where national federations of leading teams are turning to private equity companies for additional revenue.
Investors are opting for sports leagues and federations, rather than individual teams, to diversify their risk.
Seattle-based Ackerley was strategically favoured over Six Nations Championship investor CVC Capital Partners.
Ackerley has a strong track record in sports investments, with a focus on teams, leagues, media, venues, tech and development.
The Ackerley family has owned stakes in major teams like the Seattle SuperSonics, Seattle Kraken, Seattle Storm, Seattle Seadogs, and Leeds United Football Club.
Is SA Rugby selling out?
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