SARU not selling off Springboks to US sports company, MPs told

CAPE TOWN - The SA Rugby Union (SARU) insists it won’t be selling off the national team, the Springboks, through a R1.3 billion private equity deal to an American sports company. 
 
SARU boss, Mark Alexander, said that if more money was not urgently injected into the sport, professional rugby would collapse. 
 
After initially evading Parliament in November, SARU appeared before the portfolio committee on Wednesday. 
 
But it’s steered clear of sharing too many intricate details about the deal, saying it's subject to confidentiality and non-disclosure. 
 
For weeks, reports of a 75 million dollar equity deal with the Ackerley Sports Group for a 20% stake in SA Rugby has sparked controversy within the fraternity. 
 
Alexander said that the deal was not tantamount to selling off the Springbok brand, and would not impact on decision-making. 
 
The money, he said, would be ploughed into the country's cash-strapped provincial unions. 
 
"All that’s happening is we are licensing our intellectual property to the new company. We are not selling our IP. It's a license and they pay for that license. So, we haven't sold South African rugby or the IP," Alexander said.
 
SARU CEO Rian Oberholzer said that the union would not be able to sustain its Rugby World Cup success if it doesn't generate more income. 
 
"The programmes that we fund, and that we need to fund, need more money than we can generate at this moment in time, through the revenue streams available to us at this time," Oberholzer said.
 
SARU said that its equity partner won't be able to extract money from its partnership until its baseline budget had been met. 
 
Provincial rugby unions are expected to vote on the deal on Friday.