South Africans celebrate collapse of Boks’ private equity deal

South Africans have expressed support for SA Rugby’s (Saru) decision to turn down a R1.3 billion proposal for a private equity investment in the sport’s commercial rights.

The proposed deal fell through the crack after it failed to reach the 75% majority required for the transaction to be approved.

Ten out of 13 votes were needed from the country’s rugby unions for the deal to go ahead, but seven of the voters rejected it.

This lays to rest the concern various quarters, including political parties and South Africans, who accused Saru of trying to sell the Springboks franchise away.

The Ackerley Sports Group, which was identified as the preferred bidder, will now have until the end of the year to make a revised offer, if the group still wants to partner with Saru.

In a statement, Saru President Mark Alexander said the union values the members input and perspectives.

“Our goal remains to secure a sustainable and prosperous future for South African Rugby, ensuring that we continue to grow and succeed on both the national and international stages. We remain committed to working transparently and inclusively as we navigate this process. We thank our members for their engagement and feedback and look forward to presenting revised proposals that reflect our collective vision and goals in due course,” says Alexander.

Earlier in the week, Saru appeared before Parliament’s sport, arts and culture committee after initially failing to make an appearance in Parliament in November.

Speaking at the meeting, Alexander said professional rugby would collapse if money wasn’t urgently injected into the sport.

He also insisted that the success of deal would not translate to them selling off the national team.

 

Saru CEO, Rian Oberholzer, sang from Alexander’s hymn sheet and said without more funds, the Springboks will not be able to sustain its Rugby World Cup success.

good to see common sense prevailing here

— Koshiek Karan (@iamkoshiek) December 6, 2024

The fact that most South Africans can see that it was a massively undervalued deal….. Pushed heavily by same administrator who has grey clouds over tenders with SA stadium operations.

— JJ Le Roux (@le_roux15) December 6, 2024

Great decision 💪🏻

— BackSlash13 (@Slash13Back) December 6, 2024

I wonder if the time has come to start questioning SARU’s leadership.

Thanks to Rassie and the success we’ve had, the boys on the board have largely been given a free pass in the last few years.

This equity deal has brought them into the spotlight.

And not in a positive way!

— Front Row Rugby (@FrontRowRugbyXV) December 6, 2024

Selling South Africans’ cultural product to line their pockets.

— Magnis Carter. (@magnis_carterr) December 6, 2024

Precisely! They insist on old ways of business in an environment that demands evolution. We need money to keep our best talent in the country and they’ve not been able to do it. We MUST rethink SARU.

— Clive (@ndidikwe1) December 6, 2024