The South African Rugby Union (SARU) have revealed that their membership will be given the opportunity to determine rugby’s commercial future later in October.
SARU have scheduled a special general council meeting for Thursday, October 17 in which their 14 full member unions will be in attendance and where a formal offer is planned to be presented for consideration.
If the voting membership agrees to the proposal with a 75 percent majority, it will activate the conclusion of an agreement for a private equity company to invest into a newly established company to hold the commercial rights of SA Rugby.
SARU will still control the sport’s rugby affairs
Despite that agreement, the sport’s rugby affairs – such as the management, coaching, contracting and selection of all national teams as well as competition management – will continue to be SARU’s responsibility.
However, the private investors will manage and be responsible for the sponsorship, broadcasting, eventing, branding and licensing aspects due to their 20 percent stake in an SA Rugby commercial rights company.
SARU’s special general council meeting will be the culmination of months of intense work behind the scenes since the Ackerley Sports Group (ASG) were chosen as the preferred bidder by SARU’s membership in December 2023.
“We are very pleased to have arrived at this point and believe we will be able to table an offer to our members that makes commercial and business sense,” said SA Rugby chief executive Rian Oberholzer.
‘A watershed moment for rugby in South Africa’
“This is a watershed moment for rugby in South Africa as we attempt to ‘globalise’ the Springbok brand in the way that our peers in New Zealand have.
“Private investment will bring financial security as well as the capital investment and global experience and networks to enhance how we communicate, how we do things and how we interact with our stakeholders.”
Oberholzer revealed that a series of information sessions have already been held with members and he said that several visits to member unions would be undertaken before October 17 to further clarify any areas of uncertainty.
“Private investment has taken place in several of our member unions and is commonplace in global sport,” said Oberholzer.
“Our performances on the field have kept us near or at the front of the pack for several years, but we have been lagging off the field. This is our opportunity to catch up with our peers in that arena as well.”
