SA Rugby has postponed a planned Special General Meeting (SGM) to consider a proposal to conclude a private equity investment in the sport’s commercial rights at the request of Gayton McKenzie, the Minister of Sport, Arts and Culture.
A Special General Council (SGC) meeting of the 14 full member unions of SA Rugby had been scheduled for this coming Thursday, and a decision — by majority vote — would have decided whether to approve the private equity investment or not.
But the meeting will now be rescheduled at the Minister’s request to more fully brief government on the proposal. A new date for the SGM before year-end will only be confirmed after the engagement with the minister.
SA RUGBY EQUITY DEAL VOTE DELAYED
“We received the request from the minister this morning and we are happy to oblige, having shared the request with our member union presidents,” said Mark Alexander, president of the South African Rugby Union (SA Rugby).
“We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal.”
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.”
“We look forward to providing any information the Minister may require,” the SA Rugby boss added.
“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.”
THE BACKSTORY ON BILLION-RAND EQUITY DEAL
The private investors are expected to take up a 20 percent stake in an SA Rugby commercial rights company, which will manage and be responsible for the sponsorship, broadcasting, eventing, branding and licensing aspects of the sport.
According to various reports, the deal – should it be finalised – would result in an investment in the region of R1.32 billion ($75 million).
The Special General Council (SGC) meeting of the 14 full member unions of SA Rugby had initially been scheduled for this coming Thursday, but as reported above, has now been postponed.
According to a report from News24, seven out of SARU’s 14 member unions have signed a letter opposing the proposed deal.
WHAT DO YOU THINK OF THIS POTENTIAL DEAL?
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