SA Rugby Takes Key Step Toward Financial Evaluation Following Union Victory

South Africa’s top rugby unions are celebrating a significant victory this week as the South African Rugby Union (SARU) takes crucial steps to secure its financial future. Following a General Council meeting at OR Tambo International Airport in Johannesburg, SARU confirmed it would appoint a financial institution to conduct an independent evaluation of its financial standing.

This move marks a pivotal moment for South African rugby, signaling a fresh approach toward ensuring long-term financial stability and growth.

The decision comes after a controversial private equity proposal by the Ackerley Sports Group (ASG) failed to gain the necessary 75% majority vote in December. The proposal had raised concerns within several rugby unions about the future financial control of the sport.

In response, seven unions, including the Bulls, Stormers, and Sharks, united to oppose the deal. They presented a clear framework to SA Rugby, urging the organization to reconsider any future private equity negotiations with greater transparency and due diligence.

In a letter sent to SA Rugby earlier this week, these unions called for the creation of a Transaction Committee (TC). This committee, they argued, should consist of a mix of SA Rugby executives, union representatives, independent experts, and other affiliates with experience in managing complex transactions.

This call for a more structured approach to decision-making appears to have played a key role in the General Council’s resolution. SA Rugby’s confirmation of a new course of action demonstrates its commitment to ensuring the integrity of any future financial deals.

Following the meeting, SA Rugby outlined the next steps in a statement. The organization will initiate an independent selection process to appoint a financial institution tasked with assessing its financial sustainability and exploring potential roles for private equity investments in the future.

Mark Alexander, the president of SA Rugby, stated, “The General Council has provided us with a new mandate to thoroughly review our commercial and financial future, ensuring that we choose the best possible path forward.” This process will be led by a selection committee composed of union representatives, independent council members, as well as SA Rugby’s CEO and CFO.

Despite facing financial challenges in 2024, Alexander assured stakeholders that robust commercial sales for 2025, coupled with ongoing management efforts, would solidify SA Rugby’s financial position for the next three years. The financial review will play a crucial role in navigating future opportunities and challenges, providing valuable guidance as the organization moves forward with caution and strategic foresight.

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