By Lehlohonolo Lehana.
SA Rugby has postponed a Special General Meeting (SGM) to consider a proposal for a private equity investment in the sport’s commercial rights.
This follows a request by Gayton McKenzie, the Minister of Sport, Arts and Culture.
The meeting was scheduled to take place in Cape Town on Thursday but will now be rescheduled at the Minister’s request, to be more fully briefed on the proposal, said SARU in a statement.
The meeting was scheduled for members to decide whether to approve the investment tabled by Ackerley Sports Group (ASG).
It is believed that the $75m (around R1.3bn) deal would be for a 20 per cent stake in the governing body’s commercial rights company will be agreed.
“We received the request from the minister this morning and we are happy to oblige, having shared the request with our member union presidents,” said Mark Alexander, president of the South African Rugby Union (SARU).
“We had previously briefed him on his appointment, but we understand his request for further assurance considering the newsworthiness of this proposal.”
The Minister said in his letter: “It is always 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 so that I can be fully apprised of the particulars surrounding this proposed deal, or any deal that may be agreed to through your structures.”
A new date for the SGM before year-end will only be confirmed after the engagement with the minister.
SA Rugby had originally held their ground, with chief executive Rian Oberholzer reiterating the governing body’s commitment to the process in motion, in response to concerns raised by seven of the 14 unions.
For the ASG deal to proceed, 75 percent of unions would have to vote for the establishment of a commercial entity and the sale of 20 percent of the new company’s shares to Ackerley, which has no footprint in Africa or rugby.