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Springboks on verge of multi-million dollar investment deal

(Photo by Cameron Spencer/Getty Images)

The Springboks brand could be taken to new heights with the news that the South African Rugby Union (SARU) is on the verge of completing a multi-million dollar investment with American sports company Ackerley Partners.

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In a statement released by the Ackerley Sports Group (ASG) on Thursday, the company confirmed that they are negotiating a partnership agreement to invest in South African rugby at all levels, supporting the professional game, and growing the revenue base of the Springboks and SARU’s commercial activities.

The statement revealed that ASG will invest in a Commercial Rights Corporation (CRC), which will hold all current and future revenue-generating assets of the Springboks and SARU. CRC will be majority-owned by SARU, with ASG taking a significant minority interest.

While ASG has not released the in-depth specifics of the deal, a United States media outlet Sportica reported that Ackerley Partners is poised to invest $75 million (R1.4 billion) in the governing body SARU.

Sportica also reported that SARU will be the majority owner of the new entity, while ASG will hold a roughly 20 percent stake, implying a total business valuation of £300 million.

The media outlet added that the deal is expected to be finalised in May pending the approval of SARU members.

Co-founder Ted Ackerley said that ASG intends to expand the Springboks’ global reach.

“We are excited to partner with a legendary global sports franchise like the Springboks,” said Ted Ackerley, Co-Founder of Ackerley Sports Group.

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“Our collaboration will establish a worldwide expansion of the most iconic brand in rugby.

“This investment in the Springboks represents a unique opportunity for us to match the on-field success of the team with the resources needed to establish and sustain the franchise as a global powerhouse.

“We will bring decades of experience and passion for excellence with us while listening carefully to the people of South Africa to ensure that this team continues to reflect the history and culture of this amazing country.”

With the 2031 World Cup heading to the United States, a deal like this will be a major benefit for the Springboks.

There have been reports that SARU was in talks with Six Nations partners CVC Capital Partners.

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However, those negotiations appear to have halted.

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10 Comments
J
JJGhost 314 days ago

Firstly, the Springbok team is not a “franchise” 🤮🤮🤮 that is a major red flag already, surely?

It will be great if this investment could somehow reach union and club level and, e.g., help WP get its act together, or provide a better path to professionalism for young club/Varsity Cup stars.

But American investment in non-American sport has a history of going disastrously, e.g. in football, Man United and Liverpool at one stage.

Not to mention, large amounts of money floating around a South African sports organisation that is overseen by a kleptocratic government… what could possibly go wrong??

N
Nick 315 days ago

CVC has a less than 20% stake in 6N. It’s happening all over.

However, the money is welcome surely in this climate.

J
John 316 days ago

Can’t wait for US private equity to screw up Springbok rugby….hello 200US$
tickets and 150US$ jerseys

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JW 4 hours ago
Does South Africa have a future in European competition?

I rated Lowe well enough to be an AB. Remember we were picking the likes of George Bridge above such players so theres no disputing a lot of bad decisions have been made by those last two coaches. Does a team like the ABs need a finicky winger who you have to adapt and change a lot of your style with to get benefit from? No, not really. But he still would have been a basic improvement on players like even Savea at the tail of his career, Bridge, and could even have converted into the answer of replacing Beauden at the back. Instead we persisted with NMS, Naholo, Havili, Reece, all players we would have cared even less about losing and all because Rieko had Lowe's number 11 jersey nailed down.


He was of course only 23 when he decided to leave, it was back in the beggining of the period they had started retaining players (from 2018 onwards I think, they came out saying theyre going to be more aggressive at some point). So he might, all of them, only just missed out.


The main point that Ed made is that situations like Lowe's, Aki's, JGP's, aren't going to happen in future. That's a bit of a "NZ" only problem, because those players need to reach such a high standard to be chosen by the All Blacks, were as a country like Ireland wants them a lot earlier like that. This is basically the 'ready in 3 years' concept Ireland relied on, versus the '5 years and they've left' concept' were that player is now ready to be chosen by the All Blacks (given a contract to play Super, ala SBW, and hopefully Manu).


The 'mercenary' thing that will take longer to expire, and which I was referring to, is the grandparents rule. The new kids coming through now aren't going to have as many gp born overseas, so the amount of players that can leave with a prospect of International rugby offer are going to drop dramatically at some point. All these kiwi fellas playing for a PI, is going to stop sadly.


The new era problem that will replace those old concerns is now French and Japanese clubs (doing the same as NRL teams have done for decades by) picking kids out of school. The problem here is not so much a national identity one, than it is a farm system where 9 in 10 players are left with nothing. A stunted education and no support in a foreign country (well they'll get kicked out of those countries were they don't in Australia).


It's the same sort of situation were NZ would be the big guy, but there weren't many downsides with it. The only one I can think was brought up but a poster on this site, I can't recall who it was, but he seemed to know a lot of kids coming from the Islands weren't really given the capability to fly back home during school xms holidays etc. That is probably something that should be fixed by the union. Otherwise getting someone like Fakatava over here for his last year of school definitely results in NZ being able to pick the cherries off the top but it also allows that player to develop and be able to represent Tonga and under age and possibly even later in his career. Where as a kid being taken from NZ is arguably going to be worse off in every respect other than perhaps money. Not going to develop as a person, not going to develop as a player as much, so I have a lotof sympathy for NZs case that I don't include them in that group but I certainly see where you're coming from and it encourages other countries to think they can do the same while not realising they're making a much worse experience/situation.

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