SARU equity: Time for the 'real' players to step up
UPDATE: With the exclusivity period between the South African Rugby Union and it’s cherry-picked equity partner, Ackerley Sports Group/Win-by-1, having expired, some big guns will now put their cards on the table.
Johann Rupert’s Remgro is set to table one alternative, while the Marco V Masotti-headed MVM Holdings will also support an equity deal ‘that makes sense’.
Recent reports suggested that the ASG group is keen to remain part of the process of finding a suitable equity partner for SARU.
However, the Ackerley brothers’ asseveration has been dismissed as nothing more than a ‘face-saving’ exercise after the ‘bloody nose’ they received at the polls back in December—when only six of the 14 unions voted in favour of the SARU-desired partner.
Since the brothers’ dramatic loss on December 6, there have been no discussions—formal or otherwise—between ASG and any of the South Africa franchises.
@rugby365com was told that the ASG/Win-by-1 deal ‘died a long time ago’ – as clearly displayed by how the unions voted last month.
The alternative that emerged since the December vote is the Altvest-headed consortium, which was told by SARU that they would be in contact once the exclusivity period expired.
While Altvest has not been formally introduced, they have their work cut out to convince the sceptical and by now very cautious franchises they present a better option than what the likes of Remgro and MVM can bring to the table.
As Altvest Chief Investment Officer Warren Wheatley previously told @rugby365com, the consortium is committed to broad-based ownership of the Springbok brand for all South Africans.
They are escorted by some ‘strategic partners’ – like 27four, EasyEquities and RainFin.
With their Expression of Interest in SARU’s hands, Altvest will now be judged in the same vigorous manner that saw the ASG/Win-by-1 deal being dissected.
And they are up against some big hitters in the game.
(Altvest CIO Warren Wheatley explains what is on the equity table at SARU….)
The Altvest boss, Wheatley, confirmed that they have not played in the sports arena before.
“We have done similar transactions, where we raised money for a brand,” he told @rugby365com, adding that those are the customers who don’t only want to spend on the brand, but also invest in the brand.
He said the SARU equity deal is the “perfect manifestation of his business model” and that players, staff and fans are the “true owners” of the Springbok brand.
“Ownership changes everything and once people own shares in the brand they are less likely to miss a match.
“They won’t buy the fake merchandise.
“That will change people’s behaviour.”
He said their deal is a ‘mechanism’ that will foster fan loyalty and help improve the financial status of players.
“There are a whole lot of reasons why this is a good idea,” Wheatley said, adding: “It is worth SARU’s time to explore.
“While a player is building the brand, they should be rewarded sustainably.
“The sponsorships end after your final game, but if you own equity in the brand it sustains itself into your retirement.”
It will be interesting to see how SARU views this option, given their enthusiasm to push the ASG/Win-by-1 deal through.
Also, how will the franchises and unions react, as more details become available?
@king365ed
@rugby365com
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