SA Rugby have been slammed in a damning statement after reports revealed details of their equity deal with ASG
According to Business Day, who claim to have seen a paper outlining the finer specifics of the proposal, the transaction is “heavily skewed” in favor of the investors.
According to the report, the US private equity group will acquire “effective control” of the Commercial Rights Company as well as a “perpetual license” to SA Rugby’s commercial rights, which include the Springboks.
Those stories have enraged the Economic Freedom Fighters (EFF), which has accused SA Rugby of “secrecy” surrounding the deal and believes that board members will receive “massive bonuses” for completing the acquisition.
EFF is “appalled”
The political party believes that South Africa’s national rugby team should not be referred to as the ‘Springboks’ because of links to Apartheid, when players of colour were not allowed to represent the team, and that this deal will “entrench rugby as a sport that is privately controlled and only accessed by the privileged few.”
“The Economic Freedom Fighters (EFF) is appalled by the reports that the South African Rugby Union (SARU) intends to sell the commercial rights of the South African national rugby team to a US private equity firm by the name of Ackerley Sports Group,” a statement posted on the EFF social media channels read.
“The contemplated sale would mean Ackerley Sports Group would own 20% of the commercial rights of our national rugby team in a deal worth R1.3 billion.”In a contract that will further cement the national rugby team, also known as the Springboks, as a private business, rugby will be further entrenched as a sport that is privately managed and only accessible to a select few at the top level.
“Under this deal, Ackerley Sports Group is set to have perpetual license to all of SARU’s commercial rights, including control of the Springbok brand, as well as receive majority representation on the SARU Commercial Rights Company, despite only holding a 20% ownership stake.”
Government and ministers are blasted
The EFF also attacked their political opponents, the DA and ANC, claiming that they had no role in the arrangement, and specifically South Africa’s Minister of Sports, Arts, and Culture, Gayton McKenzie.
“Of more particular concern is the secrecy regarding where the proceeds of the sale will go, as it seems SARU is a law unto itself, and its board is set to pocket massive bonuses and commissions for the dodgy deal,” according to the statement.
“This sale is particularly disappointing, since despite of our society’s differences in the symbolism of our national rugby team’s name, they remain a national asset that brings us pride and a place in society. The DA-ANC-led national coalition government has no involvement in this transaction, demonstrating their lack of influence over South African rugby and growth.It’s made worse by the fact that this government has appointed a glorified cheerleader as Minister of Sports, Arts, and Culture, who is too preoccupied with social media, taking pictures with sports personalities, and receiving free tickets to sporting events to understand the complex financial transactions involving South African sports teams’ sporting and commercial rights.
“It is because this government does not take Sports, Arts and Culture seriously, that they deployed an ill-equipped individual to preside over an important industry, who is now too distracted by popularity to protect the interests of the South African sporting world.”
The EFF continued by declaring that they will interrogate the “clueless” minister about the sale of the commercial rights and bring the matter before the Standing Committee on Finance.
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