SARU to appoint financial advisors to plot future
The South African Rugby Union announced on Wednesday that it would appoint a financial institution to review rugby’s financial ecosystem.
The decision was taken at a General Council meeting in Johannesburg on Thursday.
Members mandated the executive council and management to initiate a new process following the failure to reach the required 75% majority of a private equity investment proposal by the Ackerley Sports Group in December.
SARU president Mark Alexander said the first step would be to appoint the financial institution to advise members on all aspects of rugby’s financial sustainability and the role a potential private equity investment might play.
“We have been given a new mandate from the General Council to start a new process to review our commercial and financial prospects and define the process.
He said that the financial advisors would be chosen through an independent selection process.
The selection committee would consist of one representative each from the franchise unions and non-franchise unions, as well as two independent members of the Executive Council, supported by the SA Rugby CEO and CFO.
“We will take a measured and consultative approach under the guidance of the financial advisers as we review the financial challenges and opportunities,” said Alexander.
Although a loss would be reported for 2024, Alexander said the work undertaken by management and strong commercial sales for 2025 had secured the organisation’s financial prospects for the next three years.
