SA Rugby president Mark Alexander (right) said the organisation were ‘committed to transparency and accountability’ in providing clarity about the equity deal to Sports Minister Gayton McKenzie. Photo: BackpagePix
The colourful Sports Minister Gayton McKenzie feels South African rugby has undersold itself on the proposed equity deal with American investors, the Ackerley Sports Group.
Earlier this week, McKenzie asked stakeholders in South African rugby to hold off on a decision to sell a share of the local game to an American company that view the Springboks as an opportunity to make money.
The Ackerley Group have proposed giving SA Rugby an up-front lump sum in return for a 20% return in earnings, but some of the 14 provincial unions that make up SA Rugby feel that selling the family silverware is not a good idea.
McKenzie has worked quickly to buy SA Rugby and its constituents more time to understand the implications of pledging a share of the SA game to American profiteers.
McKenzie told stakeholders yesterday that he needed time to understand the implications of foreign investment in rugby and make a considered proposal to the government.
The Sharks and the Bulls, in particular, have their private investors, and they are uncertain how a national buy-out of the Springboks will affect their investments.
[IN PICTURES] Minister McKenzie & Deputy Minister Mabe 100 days in office media briefing today which was followed by a plethora of one on one interviews with different media houses.[1/5]#InspiringANationOfWinners #100DaysInOffice pic.twitter.com/AmsCyyOFf5
— Department of Sport, Arts and Culture (@SportArtsCultur) October 17, 2024
“What do I think about the deal with the US investors? Why is there a push-back from some of the unions?” McKenzie rhetorically asked.
“I have listened to what the unions are complaining about, and my feeling is that if I had done the deal, I would have pushed for more, I would have done a different deal. I think we can push for more money.
“I feel we need to talk further with the unions and come up with a considered response.”
SA Rugby president Mark Alexander said earlier this week: “We remain committed to transparency and accountability, and it is important to correct the misinformation and posturing that has surfaced in the media.
“We believe our organisation has a long-standing track record for good governance and responsible management, as well as nation-building representative teams.
“Throughout this process, we have diligently adhered to all protocols and followed due process. Our actions have consistently been guided by the principles of integrity and fairness.
“We would urge all stakeholders and the public to rely on verified, accurate information and to support our ongoing efforts to uphold the high standards of South African rugby in delivering a sustainable future for the sport.
Joint Statement: SA Rugby postpones SGM at request of the Minister - more here: https://t.co/x7COr5hY0T
— Springboks (@Springboks) October 16, 2024
“Our commitment to the growth and success of the sport in our country remains unwavering.”
Alexander added that the Special General Meeting that was scheduled for yesterday has been postponed following a request from McKenzie, and that a new date “before year-end will only be confirmed after the engagement with the Minister”.
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