Americans confirm they will work with ‘approved’ SA consortium for equity stake in Saru

Cheslin Kolbe of South Africa breaks with the ball during the Autumn Nations Series 2024 match between Wales and South Africa at the Principality Stadium on November 23, 2024 in Cardiff, Wales. (Photo by David Rogers/Getty Images)

By Craig Ray

6 Jan 2025

American consortium, Ackerley Sports Group, remains interested in buying a stake in the Springboks.

The Ackerley Sports Group (ASG), the American consortium bidding to buy a 20% stake in commercial interest of the South African Rugby Union (Saru), has formally confirmed that it remains in the fight.

Saru’s general council, made up of its 15 provincial unions, rejected the original ASG bid of $75-million (R1.3-billion) to form a new commercial rights company last December.

It appeared at that stage that it could be the end of the Ackerleys’ interest in the Springboks. But the Seattle-based consortium said it will be flexible and is open to working in partnership with any approved local consortium that shows an interest in buying an equity stake.

“In the coming month, ASG will continue to participate in Saru’s process to secure a world-class financial syndicate by deepening and expanding its own team,” ASG owners Chris and Ted Ackerley said.

“Going forward, ASG intends to engage with any approved South African consortium, and to work with a professional adviser to ensure that any future plan is both effective and takes into account the needs of the member unions.

“These additions will provide an even stronger engine to the already impactful strategic investment we have developed over the past 15 months.”

Saru Springboks Ackerley Ted (left) and Chris Ackerley launched Ackerley Sports Group, an investment arm, in 2023. (Photo: Diana Ackerley / Ackerley Sports Group / Wikipedia)

Local consortium

Although there has been no formal statement from billionaire Johann Rupert, it has widely been reported that he is fronting an alternative consortium to buy a stake.

Sharks owner Marco Masotti and Stormers CEO and owner Johan le Roux are understood to be on the same ticket, adding local flavour to the group.

Whether owners of a handful of local clubs should be owners of the Springboks, will require further scrutiny because there does appear to be a conflict of interest.

Teams in Formula One, for instance, are not part of the ownership group of the sport.

The original ASG deal had too many red flags for the majority of the general council and it has been up to Saru and ASG to alleviate those concerns since the bid was rejected on 6 December 2024.

“During the exclusive negotiation period, ASG met with all the member franchises, Saru leadership and the Minister of Sports to present the merits and strength of the ASG approach,” the Ackerleys stated.

“This resulted in adjusted deal terms to ensure alignment, which largely reached a consensus in a highly detailed Framework Agreement that Saru and ASG felt reflected both the spirit and economic interest of all parties.

“Our team has worked diligently and transparently with the Saru team – leadership and members – to secure an investment partnership to hold all current and future revenue-generating assets of the Springboks and Saru.”

Siya Kolisi charges upfield during South Africa’s clash with Wales in Cardiff on 23 November 2024. (Photo: David Rogers / Getty Images)

Sticking points

While ASG has been engaging with unions in the past month, it remains unclear if all the barriers that led to a “no” vote have, or can be removed.

The Test match hosting model was a huge concern for South Africa’s clubs.

Revenue shifting from the provincial unions (such as the Bulls, Stormers and Lions) to the Commercial Rights Company (CRC) was a massively contentious issue.

Read more: Saru vote for equity sale faces major barriers from dissident unions still unhappy with structure

Historically, unions that host Test matches retain the associated revenue, but under the original ASG offer, the CRC would centralise Test match hosting and retain the revenue from them.

For the unions, this could lead to a shortfall in revenue because they no longer control Test match income. It could lead to a situation where unions lose revenue, while an additional R200-million to R250-million in revenue flows into the CRC.

By the end of 2024 that clause had been amended (although not formally accepted) so that all Test venues would get a share of revenues (even in seasons they don’t have a match) to an agreed value.

Cheslin Kolbe breaks with the ball during the Boks’ Autumn Nations Series match against Wales at Principality Stadium in Cardiff on 23 November 2024. (Photo: David Rogers / Getty Images)

Another on a long list of concerns was whether the original ASG offer was a loan rather than an equity deal, and the hefty $7.5-million “advisory fee” due to be paid to consultants Jordan and Co.

Like the Test model, there has been agreement to amend the advisory fee structure.

“Throughout the entirety of this process, ASG has remained committed to achieving the objective of creating a reliable and robust business operating plan,” the Ackerley brothers said.

“ASG’s objective has been to work with Saru to elevate the Springboks’ brand to the next level globally by providing capital to invest in South Africa rugby at all levels, supporting the professional game, and growing the revenue base of the Springboks and Saru’s commercial activities.

“We want to significantly increase the resources available to ensure a bright future for Saru, its member organisation and the Springboks, both on and off the pitch in the years to come.” DM

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Sticking points