SA Rugby to sell control of Springboks’ commercial rights to US private equity firm - Report
The deal is estimated to be worth about R1.3bn.
Stephen Grootes talks to Kabelo Khumalo, Business Day's companies & markets editor.
Listen to the interview in the audio player below.
US private equity firm Ackerley Sports Group (ASG) is set to purchase a 20% stake in the SA Rugby Union's (Saru) commercial rights.
The Business Day publication has seen confidential documents, detailing the rugby union's plans to sell its commercial rights to ASG for just $75m (about R1.3bn).
This deal will include the commercial rights to the Springbok brand, which is at its most valuable ever due largely to the success of the national team.
Coached by Rassie Erasmus and captained by Siya Kolisi, the Springboks are reigning World Cup champions, having won back-to-back tournaments in 2019 and 2023.
Saru are clearly looking to cash-in on the Springboks on-field success through this venture, by cashing in on the rugby team's global appeal.
It's not new to see American investment in rugby, with U.S sports management company Roc Nation Sports signing up several Springbok players to its business including Siya Kolisi, Cheslin Kolbe and Aphelele Fassi.
Speaking to Stephen Grootes on The Money Show, Kabelo Khumalo, companies & markets editor at Business Day questioned the finer details of the deal.
"The finer details...are quite strange because this private equity firm will buy, as things stand will buy 20% of the commercial rights of the Springboks brand."
- Kabelo Khumalo, companies & markets editor - Business Day
"The finer details of the deal show that they will essentially have full control of the commercial rights."
- Kabelo Khumalo, companies & markets editor - Business Day
Congratulations @SiyaKolisi, @CheslinKolbe and @aphelele_fassi on winning the Rugby Championship with the Springboks 🏆🇿🇦 pic.twitter.com/iSR503cT5c
— Roc Nation Sports International (@RocNationSI) September 28, 2024
"Saru has not fully exploited or monetised those rights of a record World Cup winning team. Back-to-back champions. So this company has positioned itself nicely to monetise those commercial rights."
- Kabelo Khumalo, companies & markets editor - Business Day
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