Report: American consortium looking to buy Stormers in multi-million dollar deal that could lead to NBA partnership
The cash-strapped Western Province Rugby Football Union could be set for a significant injection of funds from American investors, according to a report out of South Africa.
IOL reports that New York-based company MVM Holdings, headed by leading South African lawyer Marco Masotti, submitted an exclusivity agreement to the WPRFU earlier this month to buy a 51 percent stake in the Stormers for US$6 million.
As majority owners of the Cape Town franchise, the consortium – made up of a group of South African businessmen based in the United States – would obtain controlling interest of the club should the WPRFU accept the offer.
Speaking to Independent Media on Monday, Masotti said that the union had expressed concern about giving up the controlling share of the Super Rugby side to private equity firm.
He believes, however, the experience his group possesses would help grow the Stormers’ brand to a broad international market in Europe and the USA.
“The Western Province RFU has come back to us with the concern that they should keep the controlling share, but that they would give us an equitable share of the board [of the Stormers],” Masotti told IOL.
“They want to keep control of rugby affairs and we could control the commercial affairs, but that wouldn’t work for us.
“There needs to be one controller and the guys that are involved in this bid have extensive experience in enterprises of this kind — we are talking about owners of NBA and ice hockey teams.”
Masotti – who said US$2m of the US$6m price tag would be invested into the WPRFU, while the remaining US$4m would go into the balance sheet of the Stormers’ board – suggested a takeover of the Stormers could lead to business opportunities with prominent sporting entities.
“The sport of rugby is stressed and needs change to survive and then flourish, and we see so much potential in Cape Town and the Stormers as a brand — they have iconic figures in an exciting team based in one of the world’s great cities,” he said.
“We see great opportunities to link the Stormers with [the] Milwaukee Bucks and grow the brand in Europe and States.”
The chance to team inspirational Springboks and Stormers captain Siya Kolisi up with Bucks star and NBA MVP Giannis Antetokounmpo may well be a marketing ploy too rich to pass up for the WPRFU, especially given the financial landscape in a post-coronavirus era.
It seems the union has taken that into consideration, as Masotti revealed that the WPRFU board member Andre van der Veen had undertaken a search to find an equity investor, which led to the multi-million dollar offer from MVM.
Van der Veen told IOL that MVM’s offer is still very much on the table, with Masotti adding that negotiations are “ongoing”.
“Our discussions with Western Province are ongoing and they are going to come back to us regarding our concerns.”
Comments on RugbyPass
It couldn’t have been Ryan Crotty. He wasn’t selected in either World Cup side - they chose Money Bill instead. And Money Bill only cared about himself, and that manager he had, not the team.
25 Go to commentsYawn 🥱 nobody would give a hoot about this new trophy. End of the day we just have to beat Ireland and NZ this year then they can finally shut up 🤐
13 Go to commentsTalking bout Ryan Crotty? Heard Crotty say in a interview once that SBW doesen't care about the team . He went on to say that whenever they lost a big game, SBW would be happy as if nothing happened, according to him someone who cares would look down.. Personally I think Crotty is in the wrong, not for feeling gutted but for expecting others 2 be like him… I have been a bad loser forever as it matters so much to me but good on you SBW for being able to see the bigger picture….
25 Go to commentsThis sounds like a WWE idea so Americans can also get excited about rugby, RUGBY NEEDS A INTERNATIONAL CALENDER .. The rugby Championship and Six Nations can be held at same time, top 3 of six nations and top 3 of Rugby championship (6 nations should include Georgia AND another qualifying country while Fiji, Japan and Samoa/Tonga qualifier should make out 6 Southern teams).. Scrap June internationals and year end tours. Have a Elite top six Cup and the Bottom 6 in a secondary comp….
13 Go to commentsThe rugby championship would be even stronger with Fiji in it… I know it doesen’t fit the long term plans of NZ or Aus but you are robbing a whole nation of being able to see their best players play for Fiji…. Every second player in NZ and AUS teams has Fijian surnames… shame on you!!! World rugby won’t step in either as France and England has now also joined in…. I guess where money is involved it will always be the poor countries missing out….
84 Go to commentsNo surprise there. How hard can it be to pick a ball off the ground and chuck it to a mate? 😂
2 Go to commentsSometimes people just like a moan mate!
1 Go to commentsexcellent idea ! rugby needs this 💪
13 Go to comments9 Brumbies! What a joke! The best performing team in Oz! Ditch Skelton for Swain or Neville. Ryan Lonergan ahead of McDermott any day! Best selection bolter is Toole … amazing player
12 Go to commentsI like this, but ultimately rugby already has enough trophies. Trying to make more games “consequential" might prove to be a fools errand, although this is a less bad idea than some others. Minor quibble with the title of the article; it isn’t very meaningful to say the boks are the unofficial world champions when it would be functionally impossible for the Raeburn trophy not to be held by the world champions. There’s a period of a few months every 4 years when there is no “unofficial” world champion, and the Raeburn trophy is held by the actual world champions.
13 Go to commentsIts a great idea but one that I dont think will have a lot of traction. It will depend on the prestige that they each hold but if you can do that it would be great. When Japan beat the Boks (my team) I was absolutely devestated but I wont deny the great game they played that day. We were outclassed and it was one of the best games of rugby I have seen. Using an idea like this you might just give the the underdog teams more of an opportunity to beat the big teams and I can absolutely see it being a brilliant display of rugby. They beat us because they planned for that game. It was a great moment for Japan. This way we can remove the 4 year wait and give teams something to aim for outside of World Cup years.
13 Go to commentsHi, Dave here. Happy to answer questions 🥰
13 Go to commentsDon’t think that headline is accurate. It’s great to see Aus doing better but I’m not sure they’ve shown much threat to the top of the table. They shouldn’t be inflating wins against the lousy Highlanders and Crusaders either.
3 Go to commentsSuch a shame Roigard and Aumua picked up long term injuries, probably the two form players in the comp. Also, pretty sure Clarke Dermody isn’t their coach. Got it half right though.
3 Go to commentsOh the Aussie media, they never learn. At least Andrew Kellaway is like “Woah, yeah it’s great, but settle down there guys” having endured years of the Aussie media, fans, and often their players getting ahead of themselves only to fall flat on their faces. Have the “We'll win the Bledisloe for sure this year!” headlines started yet? It’s simple to see what’s going on. The Aussie teams are settled, they didn't lose any of their major players overseas. The Crusaders and Chiefs lost key experienced All Blacks, and Razor in the Crusaders case, and clearly neither are anywhere near as strong as last year (The Canes and Blues would probably be 3rd & 4th if they were). The Highlanders are annually average, even more so post-Aaron Smith and a big squad clean out. The two teams at the top? The two nz sides with largely the same settled roster as last year, except Ardie Savea for the Canes. They’ve both got far better coaches now too. If the Aussies are going to win the title, this is the year the kiwi sides will be weakest, so they better take their chance.
3 Go to commentsThe World Cup has to be the gold standard, line in the sand. 113 teams compete for what is the opportunity to make the pool stages, and then the knockout games for the trophy. The concept is sound. This must have been the rationale when the World Cup was created, surely? But I’m all for Looking forward and finding new ways for the SH to dominate the NH into the future. The autumn series needs a change up. Let’s start by having the NH teams come south every odd year for the Autumn/Spring series games?
13 Go to commentsWhat’ll happen when the AI models of the future go back in time and try to destroy the AI models of the past standing in their way of certain victory?
44 Go to commentsThanks, Nick. We (Seanny Maloney, Brett and I) just discussed Charlie as a potential Wallaby No 8, and wondered if he has truly realised how big he is in contact (and whether he can add 5 kg w/o slowing down). Your scouting report confirms our suspicions he has the materiel. No one knows if he has the mentality (as Johann van Graan said this week about CJ, Duane and Alfie B) to carry 10-15 times a game.
58 Go to commentsHe would be a great player for the Stormers, Dobbo should approach the guy.
3 Go to commentsGood article. A few years back when he was playing for the Cheetahs, he was a quiet standout for exactly the seasons stated here. I occasionally get to see his games in the UK, and he has become a more complete player and in many ways like an Irish player. His work ethic is so suitable to the Leinster game. I wonder if Rassie would have him listed somewhere.
3 Go to comments