In a blow to the South African Rugby Union (SARU) and its ambitions to secure vital funding, the President’s Council convened in Cape Town on Friday and ultimately rejected a crucial bid from the American Equity Company, Ackerley Sports Group. The proposal, which aimed to grant Ackerley a 20% stake in the SARU Commercial Rights Company for approximately R1.3 billion, failed to garner the necessary 75% approval from member unions.
Out of the 13 member unions that wield voting rights, seven opposed the deal, highlighting a fracture in the organisation’s search for lucrative investment. While the rejection is a setback, it does not mark the end of discussions with Ackerley; the group holds an exclusivity period until the end of the year, allowing it the opportunity to submit a revised proposal if it so chooses. This potential for further negotiation means that SARU’s pursuit of financial support for the Commercial Rights Company may not yet be over.
The rejection comes at a time when many within the rugby community have expressed the urgent need for enhanced financial backing to bolster the growth and competitiveness of South African rugby. Stakeholders have raised concerns regarding the sustainability of the sport in a competitive international landscape, and securing adequate investment is seen as a pivotal step in ensuring the future health and prosperity of rugby in the nation.