SARU Council to decide on private equity investment
The membership of the South African Rugby Union will be given the opportunity to determine the sport’s commercial future.
A Special General Council meeting of the 14 full-member unions has been scheduled for 17 October.
At this meeting, a formal offer is planned for consideration.
Should the proposal receive a 75% majority of the voting membership, it will trigger an agreement for a private equity company to invest in a newly established company to hold the commercial rights of SA Rugby.
SARU will continue to be responsible for the game’s rugby affairs—such as the management, coaching, contracting, and selection of all national teams and competition management.
The private investors will take up a 20% stake in an SA Rugby commercial rights company, which will manage and be responsible for the sponsorship, broadcasting, eventing, branding and licensing aspects of the sport.
“We are very pleased to have arrived at this point and believe we will be able to table an offer to our members that makes commercial and business sense,” said Rian Oberholzer, the CEO of SA Rugby.
“This is a watershed moment for rugby in South Africa as we attempt to ‘globalise’ the Springbok brand in the way that our peers in New Zealand have.
“Private investment will bring financial security as well as the capital investment and global experience and networks to enhance how we communicate, how we do things and how we interact with our stakeholders.”
LISTEN: 'TO THE LAST DROP' PODCAST
