Sports Minister Gayton McKenzie has confirmed that SA Rugby’s private equity deal will include SA partners, addressing concerns raised by dissenting unions ahead of a pivotal vote.
McKenzie, speaking after meeting with SA Rugby and the US-based Ackerley Sports Group (ASG) in London, thanked the potential investors for their “willingness to invest in SA” but highlighted areas of dissatisfaction.
These included the lack of local participation, no benefits for ex-rugby players, and insufficient support for development.
ASG’s $75-million (R1.3-billion) proposal faces scrutiny from unions concerned about undervaluing SA Rugby’s commercial potential. The final vote is set for 6 December.
“When I met with Ackerley Group and SARU in London on Friday, I thanked them for their willingness to invest in South Africa because the government of national unity is on huge drive to encourage foreign direct investment,” McKenzie told SA Rugby magazine.
“I also told them and SARU that we can’t ignore the legitimate dissatisfaction with aspects surrounding the deal – aspects of the deal make me unhappy as Minister of Sports.
“For example, non-local participation, no benefit for former rugby players, and commission should be split to benefit development and constructing new rugby fields.
“They agreed on all of these points. A local consortium will take 10% of the 20% on offer, so it’s a 50/50 split with Ackerley. Three percent of the local 10% can be taken up by former players.
“More importantly, I personally reached out to investors and only the Johan Rupert and Schalk Burger snr group came back with a definite yes to match the Ackerley’s offer.
“I met with all unions, small and big, Ackerley and SARU yesterday and told them that the negativity surrounding this deal has the potential to undo all the great work done by the Springboks on the field.
“I told them to differ more in-house and ask all the hard questions of SARU and then emerge as one voice, either for or against the deal, but this differing in public is not good for the game of rugby.”
Photo: Gallo Images/Oupa Bopape
The post Gayton clears up local equity deal roles appeared first on SA Rugby magazine.
Sports Minister Gayton McKenzie has confirmed that SA Rugby’s private equity deal will include SA partners, addressing concerns raised by dissenting unions ahead of a pivotal vote.
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