South Africa’s Minister of Sports opposes SA Rugby’s $375m PE deal with American investors

Jan 8, 2025 | News | 0 comments

Gayton McKenzie, the South African Minister of Sports, has advised SA Rugby to reject the latest offer from the US-based Ackerley Sports Group to acquire a 20% share in the Springboks’ commercial interests.

McKenzie declared for News24 that he opposes ASG’s proposal to combine with a South African consortium and invest in the South African Rugby Union’s commercial rights company. He claimed that the potential deal has “taken the gloss away from the on-field successes of the Springboks.” 

He then went on to suggest that “SA Rugby must find alternative sources of revenue,” stating that the deal has allegedly caused “a lot of unnecessary fighting, division, and strife.”

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The majority of South Africa’s provincial unions rejected ASG’s initial $75m offer in December of last year. To be approved, the proposal required a 75% majority vote, with 13 member unions participating. However, seven of the unions opposed the deal.

Prior to the provincial unions rejecting the initial ASG deal, two competing South African consortiums also submitted proposals, expressing their interest in investing in SARU’s commercial interests.

The initial consortium was formed by a group of franchise union shareholders, led by billionaire Johann Rupert, Marco Masotti, and Johan le Roux, who hold controlling stakes in the Bulls, Sharks, and Stormers, respectively.

In contrast, the proposal from the second consortium, Altvest Capital, emphasizes democratizing the process and allowing ordinary South Africans to become shareholders.

McKenzie disclosed that he has seen the proposal from the first South African consortium “with [his] own eyes” and believes it is a better option than the ASG deal.

Source: Planet Rugby

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