SA Rugby has acceded to a request from Sport, Arts and Culture Minister Gayton McKenzie to postpone its Special General Meeting (SGM) to consider a proposal to conclude a private equity investment.
The SGM, which was scheduled for Thursday and to be attended by SA Rugby’s 14 provincial unions, was supposed to vote for a controversial investment deal tabled by Ackerley Sports Group (ASG) to acquire a 20% stake in the governing body’s commercial rights company for R1.3 billion.
But McKenzie has since written a letter to South African Rugby Union (SARU) president Mark Alexander, expressing his concern regarding the deal, and requested more consultation and clarity.
“We received the request from the minister this morning and we are happy to oblige, having shared the request with our member union presidents.
We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal,” said Alexander.
In the letter, McKenzie implored on SARU for more transparency regarding the proposed deal, “especially when regarding matters of significant public interest.”
Alexander said the deal is an opportunity to expand the Springboks brand.
“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,” explained Alexander.
SARU said the SGM has now been rescheduled and a new date will only be confirmed after the meeting with McKenzie.
