Controversy Erupts Over Proposed Sale Of Springboks Commercial Rights
By Priscilla Jepchumba
The decision to sell 20% of the Springboks' commercial rights to Ackerley Sports Group (ASG) has stirred up controversy in South Africa. The proposed deal, which is worth R1.3 billion, has been met with opposition from various member unions of SA Rugby and the Economic Freedom Fighters (EFF).
SARU, the governing body of South African rugby, contends that the deal will provide financial stability and international expertise to the Springboks brand. However, critics argue that the agreement could grant ASG excessive control over the team's commercial rights and restrict access to the sport for ordinary South Africans.
The Economic Freedom Fighters (EFF) have criticized the proposed deal, labeling it as "dodgy" and raising concerns about the potential financial implications for the South African Rugby Union (SARU). The lack of transparency in the negotiation process has also been highlighted as a point of contention by the party. The EFF has called for a thorough investigation into the deal and questioned whether it aligns with South African laws.
“Of more particular concern is the secrecy regarding where the proceeds of the sale will go, as it seems SARU is a law unto itself, and its board is set to pocket massive bonuses and commissions for the dodgy deal,” said EFF.
Ackerley, established last year by siblings Christopher and Ted Ackerley of Ackerley Partners LLC, will occupy three out of the seven voting board seats in the new company and will also have the authority to appoint someone to the position of chair, according to the newspaper. It will be allowed to divest its stake after eight years.
“This entity will oversee sponsorship, broadcasting, events, branding, and licensing related to the sport. However, rugby affairs such as team management, coaching, contracting and competition management will remain under SARU’s jurisdiction,” said SARU.
SARU's member unions are scheduled to vote on the proposed sale on October 17. Approval of the deal requires the support of 75% of the member unions.
