U.S.-Based ASG Seeks Partnership With SA Consortium For Rugby Rights Deal
U.S.-Based ASG Seeks Partnership With SA Consortium For Rugby Rights Deal
U.S.-based ASG renews interest in SA Rugby’s commercial rights, aiming to partner with a South African consortium after its initial bid faced opposition.
The Ackerley Sports Group, a sports investment firm based in the United States, has reignited its interest in acquiring a stake in South African Rugby’s commercial rights company by signaling a willingness to partner with a local consortium.
This unexpected move comes after its initial offer for a 20% stake in SA Rugby’s commercial entity was met with stiff opposition.
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Last October, ASG proposed a $75 million (R1.4 billion) investment, a deal touted as a potential game-changer by SA Rugby Chief Executive Rian Oberholzer.
“This is a watershed moment for rugby in South Africa,” Oberholzer said at the time, emphasizing the opportunity to globalize the Springboks brand and bring financial security, capital investment and global expertise to the organization.
However, the deal faced significant resistance.
For the proposal to pass, a 75% majority vote was required among SA Rugby’s 13 member unions.
Seven unions opposed the deal, citing dissatisfaction with its financial structure, high commission rates and the lack of guaranteed funds. Critics highlighted ASG’s proposed control over the board of the commercial rights company, which many felt undermined SA Rugby’s authority despite ASG’s minority 20% stake.
Though ASG held an exclusivity period for negotiations until the end of 2024, it failed to present a revised bid during that time, effectively opening the door to other suitors. In the meantime, two prominent South African consortiums emerged with competing offers.
The first consortium, backed by billionaire Johann Rupert, Marco Masotti, and Johan le Roux - controlling stakeholders in the Bulls, Sharks and Stormers franchises, respectively - sought to retain South African control of rugby’s commercial interests.
The second group, Altvest Capital, took a grassroots approach, aiming to democratize investment and give ordinary South Africans a chance to become shareholders in SA Rugby’s commercial arm.
ASG’s initial proposal faced backlash, not only for its control structure, but also for its financial arrangements.
The original agreement included a controversial 15% commission payable to Jordan & Associates, a company owned by former Formula One boss Eddie Jordan.
Following public outcry, ASG reduced the commission to 8%. By contrast, the local consortiums assured that no funds would be diverted to third-party commissions under their proposals.
Despite these challenges, ASG remains undeterred.
According to reports by Netwerk24, the group has issued a letter affirming its intent to collaborate with an approved South African consortium.
“ASG will, by deepening and expanding its own team, continue to participate in SARU’s process of finding a world-class financial syndicate,” the letter stated.
The group emphasized that its strategic plan should be part of any future proposal to stabilize SA Rugby’s finances.
As SA Rugby continues its search for investment, the battle for a stake in its commercial rights highlights the complex dynamics of balancing global partnerships with local interests.
Whether ASG’s pivot to a collaborative approach will win favor remains to be seen, but the race for financial backing is far from over.
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