Given the fact that the Ackerley Sports Group (ASG) had their R1.3 billion proposal to obtain a 20 percent stake in SA Rugby’s commercial rights rejected by the union’s voting members, it should be case closed on the matter. So, why are the American investors still a factor?

On 4 December 2024, the ASG deal was met with heavy pushback during a briefing of the Portfolio Committee on Sports, Arts, and Culture. This was followed by seven of the 13 South African unions voting against SARU’s preferred equity partner.
The local franchises – the Stormers, Bulls, Sharks, and Lions, along with a number smaller unions – raised concerns over the lack of transparency pertaining to the ASG deal, which prompted the government to step in.
SA Rugby were also grilled by parliament on the involvement of former CEO Jurie Roux in the equity deal, whom the governing body confirmed acted as a consultant and advised current CEO Rian Oberholzer despite having stepped down in December 2022 following the financial scandal and long-standing legal battle with his former employer, Stellenbosch University.
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Show more newsIt is also understood that the commission-fees component that came with ASG’s proposed deal – as high as 15 percent to third parties - didn’t sit well with those who opposed the deal.
The commission structure in itself is a contentious matter that raises suspicion.
Former Formula 1 boss Eddie Jordan - whom had reportedly asked for 15 percent commission with the ASG deal - denied that figure to Netwerk24 this week and voiced his frustration, clarifying that they had expected only between two-and-a-half and three percent, while an SA Rugby spokesperson explained that the governing body had made provision for “a maximum of 15 percent” for all expenses involved in the transaction.
Rapport further revealed that, according to a rugby administrator, the confusion around the commission fee indicates that someone is lying, saying:
It Eddie says 3.5 percent and SARU says 15 percent, then someone is lying. Who negotiated on behalf of SARU, and with whom did he negotiate? If Mark does not take this seriously, there will have to be a motion of no confidence in the entire executive council. We cannot sweep this under the carpet.
Johann Rupert’s Remgro Group, with the support Patrice Motsepe’s African Rainbow Capital is set to come forth with an alternative, while Marco Masotti’s MVM Holdings is another keen prospect. A South African business consortium, including AltVest Capital and EasyEquities has also signalled interest in an equity deal with SARU.
However, according to reports, the Seattle-based ASG haven’t given up, stating that they plan to engage with any approved South African consortium.
Ackerley was the preferred bidder and was pushed by president Mark Alexander and Oberholzer, and Alexander has previously said that the governing body is at risk of financial collapse unless it boosts its revenue, this despite the Springboks being back-to-back World Cup champions and the growth of the Springbok brand. Alexander presented that in defence of the ASG’s proposal. The vote by some of the unions against the deal also doesn’t exactly paint a picture of a vote of confidence in the current leadership’s undertakings.
Minister of Sports, Arts, and Culture Gayton McKenzie has indicated recently that he backs alternative partnerships and that he believes it is time to move on from the ASG deal.
This deal has divided South Africans and taken the gloss away from the on-field successes of the Springboks,” McKenzie said to sport24. “What has happened in the boardroom has taken away what the players have done. I think the time has come for us to move on.
SA Rugby must find alternative sources of revenue and they must just kill this thing because it has caused a lot of unnecessary fighting, division, and strife. SA Rugby must think outside of the box, and I have faith in SA Rugby’s leadership in terms of finding another alternative.
I have seen another proposal, with my own eyes, from the Rupert group. It is better than the ASG proposal.
While McKenzie might have faith in SA Rugby’s leadership, the question remains whether the unions share the same sentiment.


