CAPE TOWN (Reuters) - South African Rugby have confirmed they are in talks with United States-based Ackerley Sports Group (ASG) over a private equity sale in the shareholding of their commercial activities, as reports suggest a cash injection of $75-million for the union.
SA Rugby confirmed on Wednesday they are nearing a deal that is scheduled to be presented to their 14 member unions for a vote at the organisation’s Annual General Meeting on May 30.
"A private equity partnership offers not just an immediate financial boost but also crucially provides the expertise, networks, and resources necessary to enhance the commercial value of South African rugby," SA Rugby said in a media release.
"This collaboration can position SA Rugby, the Springboks and, eventually, other teams for greater global prominence."
SA Rugby, who have not revealed figures, added they have "agreed on the primary conditions" but that a finalised agreement has not yet been drawn up.
They also confirmed they will remain custodians of the Springbok brand.
"The Springboks and all national teams will retain their existing management and ownership models," the release continued. "As national institutions, the Springboks and SA Rugby are not transferable to private equity.
"This strategy is about harnessing our commercial rights in partnership with an organisation and creating a separate entity dedicated to elevating our commercial profile."
Several local media reports suggested the final figure would be around $75 million.
ASG have owned all or a part of several professional sports franchises in basketball, ice hockey, soccer, and rugby, and recently partnered with 49ers Enterprises to assume majority control of club Leeds United.
(Reporting by Nick Said; Editing by Christian Radnedge)
