The proposed R1.3 billion equity partnership between SA Rugby and Ackerley Sports Group (ASG) is edging closer to approval, thanks to a pivotal intervention by Vodacom Bulls CEO, Edgar Rathbone. His innovative solution to a major sticking point has significantly increased the likelihood of securing the necessary votes.
From 50% to 85% – A Critical Turnaround
Just a week ago, the deal’s chances of success appeared slim, with only a 50% probability of achieving the 75% majority vote required from SA Rugby’s voting unions. Now, insiders estimate an 85% to 90% chance of approval.
At the heart of this shift is Rathbone’s proposal to address the contentious issue of test match hosting fees. Rathbone suggested that from 2025, ASG would reimburse unions for using their facilities to host test matches. This framework has reportedly convinced several unions to support the deal, which would see ASG acquiring a 20% stake in SA Rugby.
A December 6 Decision Looms
SA Rugby’s main board will cast the final vote on December 6, needing approval from 10 of 13 unions to meet the 75% threshold. Sources suggest up to nine unions are already in favor, with further lobbying efforts underway to secure the remaining votes.
Momentum has also been bolstered by ASG’s recent meeting with representatives from SA Rugby and the shareholder groups of the Bulls, Lions, Sharks, Stormers, and Cheetahs. The Cheetahs’ inclusion in the talks reflects their ongoing negotiations with ASG-linked equity partner Y11, which could give shareholders representation on the SA Rugby board.
Opposition and Alternatives
Despite the progress, some administrators remain resistant. One senior figure hinted at alternative strategies should the deal fail, cautioning that “a lot of water still needs to go into the sea.”
The Bigger Picture
If successful, this partnership could inject R1.3 billion into South African rugby, offering a significant boost to the sport’s financial stability. With Rathbone’s solution addressing key concerns, SA Rugby’s unions face a defining moment in shaping the sport’s future.