Government Intervenes Over SA Rugby Equity Proposal
Date
10/16/2024 8:02:33 AM
(MENAFN- The Peninsula)
AFP
Johannesburg: government intervention on Wednesday led to the postponement of a South African Rugby meeting that would have voted on a controversial equity proposal.
An SA Rugby statement said the meeting on Thursday in Cape Town would be rescheduled at the request of sports Minister Gayton McKenzie.
A proposed 1.3 billion rand ($74 million/68 million euro) deal with the Ackerley Sports Group would give the Seattle-based company a 20 percent stake in the commercial arm of SA Rugby.
But a senior provincial rugby official told AFP opinion was sharply divided over the proposal, which requires 75 percent backing from the 13 provinces eligible to vote for it to be passed.
SA Rugby say the deal will strengthen the organisation financially while opponents argue that there are many unanswered questions.
"We received the request from the minister this morning and are happy to oblige, having shared the request with our member union presidents," said SA Rugby president Mark Alexander.
"We had previously briefed him, but we understand his request for further assurance considering the newsworthiness of this proposal.
"We believe that the proposed partnership, along with our identified partner, offers an opportunity for organic growth rather than simply serving as a cash injection.
"Importantly, it ensures that the Springboks will remain under the control and direction of SA Rugby, safeguarding the future of our organisation."
McKenzie said: "It is important that levels of consultation and information sharing are adequate in matters such as these, especially when regarding matters of significant public interest.
"I would, therefore, like to humbly request that tomorrow's scheduled meeting to decide on the way forward with your members be postponed.
"(Then) I can be fully apprised of the particulars surrounding this proposed deal, or any deal that may be agreed to through your structures."
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