The South African Rugby Union (Saru) are bracing for a crucial Special General Council meeting, scheduled for tomorrow, where the future of their proposed equity deal with Ackerley Sports Group (ASG) hangs in the balance.
Despite significant pushback from their member unions, Saru are determined to proceed with the vote concerning the investment that could reshape the commercial landscape of South African rugby.
An SA Rugby spokesperson confirmed to Independent Newspapers that the governing body is actively engaging with their member unions amid concerns raised in a strongly worded letter, signed by leaders from various unions and franchises.
This letter articulates the opposition against the proposed deal, which reportedly involves a R1.3 billion investment, to acquire a 20% stake in a new company that will oversee South African rugby’s commercial rights.
According to reports, seven out of the fourteen unions have voiced their disapproval, reflecting widespread apprehension about the proposed transaction. To pass the deal, Saru requires a 75% approval vote at a Special General Meeting.
Failure to secure this majority could lead to an embarrassing public spectacle, as outlined in the letter from opposing unions.
“We urge SARU to postpone the SGM, to avoid having the transaction voted down by members, creating a public spectacle which is not in the interests of Saru or its members.”
“We urge Saru to postpone the SGM, to avoid having the transaction voted down by members, creating a public spectacle which is not in the interests of Saru or its members,” the letter reads.
“We, the undersigned member unions and their commercial affiliates are deeply concerned about the proposed transaction, which is due to be voted on at a Saru Special General Council meeting to be (tomorrow). Based on the available information received to date and the last-minute roadshows only a few days before the meeting, we are not supportive of this proposal.
“We understand that Saru requires short to medium-term liquidity and intends to pursue brand growth internationally. However, these objectives must be pursued in a commercially sensible and sustainable manner in the interest of all stakeholders and the continued strength of SA rugby
“This transaction will paper over the cracks at Saru, for a moment in time, and greatly impair the future of rugby in this country, both on the development and professional side
“Further meetings are planned with member unions before Thursday’s Special General Meeting, at which we will continue to answer any questions members may have and listen to all perspectives.”
Despite the growing opposition, Saru remains steadfast, asserting that they are not selling the iconic Springbok brand but rather seeking to enhance South African rugby’s global standing through this equity deal.
“Various questions have been raised and have been addressed during this process, and we are responding directly to our members,” an SA Rugby spokesperson said.
“Further meetings are planned with member unions before Thursday’s Special General Meeting, at which we will continue to answer any questions members may have and listen to all perspectives.”