Source link : https://rugby-247.com/2024/10/25/sa-rugby-set-new-equity-deal-d-day/
The Ackerley Sports Group (ASG) will meet with seven dissenting provincial unions just days before a new vote date set for early December in a final chance to determine the fate of the equity deal.
Originally slated for a vote on 17 October, the decision was delayed to 6 December due to pushback from these unions, who now seek clarity from ASG on key issues regarding the US-based investment group’s $75-million (R1.3-billion) proposal for a 20% stake in SA Rugby’s commercial arm.
ASG’s investment, intended to secure a strategic role in driving SA Rugby’s commercial growth, has raised concerns over whether it undervalues the world champion Springboks’ brand and leans too heavily in ASG’s favour.
According to a report by Sport24, ASG will meet on 3 December with the Presidents’ Council, SA Rugby’s primary governing body, and representatives from the equity partners of the franchises opposing the deal.
This includes influential stakeholders MVM Holdings (Sharks), Remgro and Patrice Motsepe (Bulls), Red Disa Investments (Western Province), and Altmann Allers (Lions), who, in a collective letter dated 14 October, outlined objections to the agreement.
In their original letter, the franchises detailed concerns, primarily around ASG’s financial transparency and the deferred payment structure. They argued that ASG’s staggered investment tranches—paid out over 54 months while receiving 80% of profits from SA Rugby’s Commercial Rugby Company (CRC) to fund these payments—could undermine SA Rugby’s long-term financial health.
ASG aims to meet directly with the unions to discuss concerns regarding the proposed deal structure and financing arrangements.
SA Rugby needs a 75% majority (10 out of 13 votes) on 6 December for the deal to proceed.
The Presidents’ Council is expected to hold a pre-vote briefing with South Africa’s Sports Minister, Gayton McKenzie. McKenzie’s recent intervention led to the postponement of the vote to December, allowing more time to address the franchise partners’ concerns.
Photo: Ashley Vlotman/Gallo Images
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Author : rugby-247
Publish date : 2024-10-25 07:26:43
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