OPINION: Use the words ‘equity deal’ in the rugby space these days, and everyone thinks of SA Rugby, Ackerley Sports Group (ASG), and billions of Rands.

Everyone knows SA Rugby is hell-bent on going through with an equity deal with American private equity company ASG and claims are made that it will take the Springbok brand global.

However, some of the member unions are now not so convinced about the intended deal, claiming that it is a loan that will empty SA Rugby’s profits.

Taking the Bok brand global will be done through broadcasting rights, sponsorship deals, match revenue, and merchandise licensing for a team which has all been pretty much guaranteed by ASG.

But who is ASG? SA Rugby has shared very little background information on this company that is destined to ‘take the brand’ global and secure reserves for a rainy day.

According to a damning report in the Financial Mail, ASG has never taken a sports brand and made it famous anywhere, let alone across borders and oceans. This is denied by SA Rugby.

“And what does ‘taking the Boks global’ mean? In the rugby world, they are already global,” Financial Mail states.

It goes on to say: “Of course, rugby, unlike football, is not a global game. But ASG, a tiny Seattle company of seemingly no fixed abode, is not likely to change that. It does not have international experience or even an existing sports portfolio. And there’s no sign that it has the reported $75m [R1.3bn or so] needed to do the deal that SARU wants.”

According to the article, the ‘unheard-of’ ASG announced in February of 2023 that it was going to invest in the Springboks.

A deep dive into the background of ASG, via a sadly static website consisting of a one-pager with links to an email and LinkedIn profile offered very little information.

Link to ASG website HERE

Yet, according to SA Rugby, ASG’s proposed Commercial Rights Company (CRC) would hold all the Springboks and Saru’s current and future revenue-generating assets.

However, SA Rugby does not seem worried about the legitimacy or financial stability of ASG.

They believe the proceeds from CRC will support grassroots rugby, amateur refereeing, and community rugby in South Africa, ensuring the sport’s growth and sustainability at all levels​​​.

The following information was shared with Rugby365 to give clarity on the ASG group: “The Ackerley Family has owned and operated seven professional teams across five sports over a 40-year period while never exiting a position in under 13 years and never operating at a loss.

“ASG invests in the sports sector mostly focusing on leagues, teams, venues, media, technology, and development opportunities.

“Their most recent investments include Leeds United, in partnership with the San Francisco 49ers Enterprises; and Tiger Woods and Rory McIlroy’s TMRW Sports.

“ASG is an expansion of the investment practice established in 2002 by Ackerley Partners. The collective value of sports entities they are invested in is $4.25bn.”

ASG’s investment is intended to secure a strategic role in driving SA Rugby’s commercial growth, an investment that SA Rugby vehemently denies is a loan and would not have to be paid back.

Let’s hope for everyone’s sake, especially the rugby entities in South Africa, that this will come to fruition.

The CRC will be majority-owned by SA Rugby, with ASG taking a 20% interest.

On a positive note, as the World Cup heads to the United States in 2031, this partnership might position the Springboks to leverage the American market, furthering their global influence and dominance both on and off the field.

So let’s talk numbers. What are the amounts being thrown around?

Originally slated for a vote on October 17, the decision was delayed to December 6 due to pushback from seven union members, who now seek clarity on ASG’s $75-million (R1.3b) proposal for a 20% stake in SA Rugby’s commercial arm.

As part of ASG’s proposal, they predicted an estimated growth for the Springbok brand and value as far ahead as 2031 through them taking control of all current and future revenue-generating assets of the Springboks and SA Rugby. But there is no guarantee of the potential growth or lack thereof.

The initial proposal on the intended equity deal was delivered to the SARU members in December 2023 which they unanimously voted in favour of.

ASG will meet on December 3 with the Presidents’ Council (SA Rugby’s primary governing body), and representatives from the equity partners of the franchises opposing the deal as well as Sports Minister Gayton McKenzie.

For the deal to proceed, SA Rugby needs a 75% majority (10 out of 13 votes) on December 6.