SA Rugby open letter: 'The Springboks are not being sold'
SA Rugby have penned an open letter following speculation over the a highly publicised multi-millon dollar investment being made into the union.
Last we week it was revealed that South African Rugby Union (SARU) is on the verge of completing a multi-million dollar investment with American sports company Ackerley Partners. Ackerley Sports Group (ASG) are currently negotiating a partnership agreement to invest in South African rugby in a bid they claim will see growth for revenue base of the Springboks and SARU’s commercial activities.
The potential deal, still under negotiation and requiring approval from the 14 member unions, aims to create a Commercial Rights Company (CRC) where the private entity would hold a minority share, leaving SA Rugby as the majority shareholder.
Now SA Rugby CEO Rian Oberholzer has issued an open letter to the nation no less. The letter reads: “As some of you may have read or heard, SA Rugby is engaged in conversations with a private equity company, which wishes to invest in the future commercial growth of our sport.
“That conversation is incomplete, and any agreement that may ultimately be reached, requires the approval of the 14 member unions of SA Rugby before it could be signed.
“But there has been much speculation, misdirection and misunderstanding of what the purpose and practicalities of such an agreement involve. Let me put the record straight.
“If you take only one thing from this letter, let it be this: The Springboks are not being sold – not now and not ever.
“If the private equity deal is approved, it will entail a company investing in a minority shareholding in the commercial rights to SA Rugby’s activities in a newly created Commercial Rights Company (CRC). SA Rugby will remain the majority shareholder.
“The CRC will not be responsible for the management or selection of any national teams nor for the management of competitions. It will be based in South Africa and have an operational staff transferred from the existing structures, augmented by international expertise and consultants. It will be SA Rugby’s commercial arm, a subsidiary to the mother body.
“What it means in short is that SA Rugby’s commercial activities of selling broadcast and sponsorship rights and running events will continue as before, only in partnership with a company with international experience who believe that our revenues are capable of meaningful increase. This is a good thing.
“That is the “what” is happening, but just as important in answering the question, “why are we doing it”?
“It’s simple: the Springboks are back-to-back world champions, but off the field the financial sustainability of rugby is far from world class.
The sport took extreme measures to survive the COVID pandemic, but we have zero reserves, and a similarly cataclysmic financial disaster would wipe out the sport as we know it in this country.
Similarly, our peers at international level outperform us in the global commercial markets and we have long needed a step change in our business to generate the income to keep the Springboks on top and, among many other things, help our women one day win their World Cup.
“We can’t produce that step change alone and from the foot of Africa, so we have actively sought a partnership with an organisation possessing the platforms, networks, and relationships to enhance our commercial value.
“We believe we have found potential partners with those attributes who will join us in the CRC, which will be dedicated only to organically elevating our commercial presence.
“I hope I have made it clear that this process is not about a quick cash injection; it is about securing the long-term financial sustainability of the sport of rugby in South Africa so that our international teams can compete on a level playing field.
“It will provide us with reserves to weather future storms and the capital to invest in strategies to put us on a par with international best practice on and off the field.
“We are not selling the Springboks; we are not ceding away any rights; we are building a new company with a minority shareholder to give the Boks (and the rest of rugby) the commercial resources to ensure that the idea of a Three-peat is not just a pipe dream.
“Together with the right commercial partners we will be Stronger.”
Comments on RugbyPass
Big empty stadium does nothing for atmosphere but munster are playing well with solid performance
1 Go to commentsYes, Fiji can win the World Cup! With that belief plus their christian faith🙏 and hard work it is achievable. Great article. Ian Duncan Fiji resident 1981-84
2 Go to commentsInteresting comments about Touch. England’s hosting the Touch World Cup this year and the numbers have exploded since their last World Cup in 2019, something like 70% more teams and 40 nations taking part. And England Touch have made a big thing about how many universities are in their BUCS University Touch Championship as well as Sport England membership. Can only see this growing even more domestically as more people become aware of it
10 Go to comments“Cortez Ratima is light years ahead of anyone on current form, while TJ Perenara has also skyrocketed into contention following the unfortunate injury to the talented Cam Roigard.” At last some sanity. Hitherto so many pundits have been wittering on about Finlay Christie to the point one wondered if they were observing a FC in a parallel universe where the FC they saw wasnt just the mediocre Shayne Philpott project of Fosters hapless AB reign in the real world. Ratima, Perenara and Fakatava are the ONLY logical 9s for Razor now Roigard is crocked.
2 Go to commentsThis game was just as painful as the Hurricanes game. It was real fork-in-the-eye stuff.
2 Go to commentsNow if they could just fire the Crusaders ground PA guy who likes to play his dance music and just loves the sound of his own voice the entire game, even when play is going on. And I thought their brass band thing of a few years ago was bad.
5 Go to commentsUnfortunately when you lose by far the two form players this season in Roigard and Aumua, you're left replacing two game changing Tanks with a couple of pea-shooters. Which is also about the speed of TJs pass.
2 Go to commentsBit rich coming from the guy with zero loyalty to anyone or any team, including happily taking a players place in a league world cup squad because well, SBW wanted to play in it and thus an already named player got told he was no longer going. And airing stuff like this, which may or may not be true, doesn't exactly say you're a stand up guy either SBW. Just looking to keep his name in lights as usual.
38 Go to commentsTamati Tua. …the Taniwha NPC midfielder. Ollie Sapsford, Hawkes Bay NPC midfielder…doing well
2 Go to commentsFiji deserve to be in the rugby championship, fans love seeing the Fijian national team play, the Fijian Drua is a wonderful idea but the players can still be stolen to play for NZ and AUS…
2 Go to commentsThe first concern for this afternoon are wheather forecast…
1 Go to commentsWhy cant I watch Rugby games please?
1 Go to commentsBeautiful shot from Finau, end of story. Gutted for Shaun Stevenson though.
4 Go to commentsThe Chiefs definitely didn’t win ugly. They had the superior scrum, a dominant lineout, and their defence was excellent once the Waratahs scored their two tries (thanks to some lucky refereeing calls mind you). They put pressure on the Waratahs lineout throughout the game, and the mind boggles as to why the referee did not award a yellow card or a penalty try against the Waratahs for repeated scrum infringements on their own try line before Narawa’s first try. And the Chiefs were slick with their passing and running angles on attack. It was a dominant performance all round, even with many questionable refereeing decisions.
1 Go to commentsWasnt late. Ref 2 assistants andTMO all saw it so who are you to say it was?
4 Go to commentsAre the Brumbies playing the Blues twice in a row?
4 Go to commentsBig difference from the Saders. Forwards really muscled up and laid a solid platform. Scooter brought some steel and I liked the loosie combination. Newell has been rather disappointing this season but stepped up big time - happy also to see Franks dot down. He should do that more often! Reihana had a good game and there seems to be more flair and invention with him in the saddle. McNicoll plays well from the back and is reliable plus inventive when he joins the line. Keep it up chaps!
5 Go to comments🤦♂️🤣 who cares who’s the best . All I know is the All Blacks have the star coach but have few star players now …
34 Go to commentsJe suis sûr que Farrell est impatient de jouer avec Lopez et Machenaud et d’être entraîné par Collazo… 🤭
1 Go to commentsAn on field red (aka a full red) in SRP must surely carry a bigger suspension than a red card given by the bunker as that carries a 20 minute team punishment. Had Damon Murphy abdicated his responsibility as a ref and issued both Drua players a yellow, which would have been upgraded to a 20 minute red by the bunker, that would have killed Australia and New Zealand’s push for the 20 minute red to be trialled globally from July this year.
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