Springboks’ private investment slammed as a ‘dodgy deal’, SA Rugby accused of ‘secrecy’ and receiving ‘massive bonuses’
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 document which outlines the finer details of the proposal, the deal is “heavily skewed” in the investors’ favour.
The report also states that the US private equity firm will get “effective control” of the Commercial Rights Company and “perpetual license” to SA Rugby’s commercial rights, which includes the Springboks.
Those reports have angered the Economic Freedom Fighters (EFF) which has accused SA Rugby of “secrecy” around the deal and believe that board members will get “massive bonuses” for finalising the investment.
EFF “appalled”
The political party is of the opinion that South Africa’s national rugby team should not be referred to as the ‘Springboks‘ due to the links back to Apartheid when players of colour were not allowed to represent the team and state that this deal will be “entrenched 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 deal that will further cement the national rugby team, which is improperly referred to as the Springboks, as a private entity, the move will mean that rugby will be further entrenched as a sport that is privately controlled and only accessed by the privileged few at the highest 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 slammed
The EFF also took a swipe at their political opponents, the DA and ANC, who they believe have had no role to play in the deal and took aim at South Africa’s Minister of Sports, Arts and Culture Gayton McKenzie in particular.
“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,” the statement continued.
“This sale is most unfortunate, as regardless of the differences in our society regarding the symbolism of the name of our national rugby team, they remain a national asset which holds pride and place in our society. It is even more alarming that the DA-ANC led national coalition government has absolutely no role to play in this transaction, proving that they have never had any power over rugby and rugby development in South Africa.
“It is even made worse by the fact that this government has deployed a glorified cheerleader as Minister of Sports, Arts and Culture, who is too preoccupied with social media, taking pictures with sports personalities and being given free tickets to sporting events, to have any appreciation of the complex financial transactions that relate to the sporting rights and commercial rights of South African sports teams.
“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 concluded by stating that they will direct questions to the “clueless” minister over the sale of the commercial rights and raise the matter with the Standing Committee on Finance.
READ MORE: Eben Etzebeth takes a cheeky dig at Siya Kolisi as Springboks reunite with Sharks