SuperSport has taken SA Rugby (Saru) to task about the way the organisation engaged in discussions to sell 20% of the commercial rights of the Springboks to Ackerley Sports Group (ASG), arguing it should have been taken on board.
SuperSport CEO Rendani Ramovha, in a letter to the Saru CEO and president, said it was taken aback by being left out in the cold in the proposed deal between ASG and Saru, as its financial contribution to SA rugby over the years has been significant.
“SuperSport wishes to express its significant reservations regarding the manner in which the proposed equity transaction between Saru and the Ackerley Sports Group is being dealt with,” Ramovha wrote.
“It is not the purpose of this letter to express a view as to whether all of the concerns in the October 14 letter are well founded or whether some might be capable of explanation or resolution,” he said, referring to a letter written by member unions on Monday. “At this stage, SuperSport cannot take a clear view on this — save to say that the high-level reservations previously raised by SuperSport have not dissipated by virtue of the further information now available.
“In any event, what is now abundantly clear is that the proposed ASG transaction will have enormous and long-lasting ramifications for SA rugby, for Saru unions and for Saru’s relationships with its long-standing commercial partners such as SuperSport. It is equally clear that the concerns expressed in the letter are substantive in nature and require proper engagement and reflection.”
SuperSport’s letter comes as SA Rugby delayed a meeting scheduled for Thursday to decide on the proposed sale of the commercial rights to the US-based private equity firm.
This came at the request of sport, arts & culture minister Gayton McKenzie.
In his letter to Saru, the minister said: “It is always important that levels of consultation and information sharing are adequate in matters such as these, especially when regarding matters of significant public interest.”
The proposed deal has seen backlash from within Saru, with strong opposition voiced by seven of the 14 member unions.
Saru president Mark Alexander said he understood McKenzie’s request for further assurance, “considering the newsworthiness of this proposal” and said he looked forward to providing any information the minister may require.
“We believe that the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection. Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation.”
Saru said a new date for the meeting would only be confirmed after engagement with the minister but would take place before the end of 2024.
The decision by Saru marks a change in attitude from the tone of the organisation a day earlier, when it refused a similar request from seven of its unions opposed to the deal.
The unions, including the Sharks, Blue Bulls, Lions and Stormers, requested a three-month postponement of the meeting to enable them to present a counter-offer that keeps ownership of the rights in SA, while injecting cash into the technically insolvent Saru.
The unions wanted a three-month postponement to enable them to present an alternative proposal to that of ASG. However, the Saru CEO dismissed them, insisting the meeting would go ahead, until McKenzie’s intervention.
The structure of the mooted deal between ASG and Saru has raised eyebrows as it essentially gives the private equity effective control over Saru’s commercial rights, in a loan disguised as an investment.
Under the proposed deal, Saru will have to pay back ASG the $75m it will “invest” in SA Rugby’s Commercial Rights Company while retaining perpetual rights to Saru’s commercial rights.
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