VIDEO: Will SARU's Win-by-1 equity partner get enough support?
SPOTLIGHT: The South African Rugby Union’s Special General Meeting in Cape Town on Friday could send the national body ‘back to the drawing board’.
Having failed to convince members of the government’s Portfolio Committee on Sports, Arts and Culture of the merits of the new equity partner – Win-by-1 – they now need 10 of the 13 unions and franchises to vote in favour of the problematical collaboration.
The briefing, chaired by Joe McGluwa, took place just two days before SARU SGM to vote on the US$75-million (ZAR1.3-billion) equity deal with the American-based equity consortium – trading under the banner of ‘Win-by-1’.
Despite their well-prepared digital presentation – backed up by verbal elucidations – it was during the question-and-answer session that SARU failed to quell the controversy.
It transpired that the previously unheralded Win-by-1 entity was formed this year only as a vehicle for the Ackerley Sports Group to drive the equity deal.
(A damning message to SARU …)
While SARU vehemently denied it was a ‘loan deal’ and indeed an ‘equity partnership’ the members of the Portfolio Committee were not buying what they believed were SARU ‘selling porkies’.
Now SARU must convince their already sceptical members – seven of whom signed a strongly-worded letter of objection against the deal with ASG (now Win-by-1) – that it is a good transaction.
SARU President Mark Alexander took potshots at the media, claiming that because they are ‘not responding’ to reports, it doesn’t mean all the reports are accurate.
However, Advocate Shameemah Salie, one of the more vocal members of the Portfolio Committee, made it clear she was not convinced by SARU’s rationales.
There was also some vigorous questioning from committee member Liam Jacobs, who said he supports them but needed more detail on the deal.
He got SARU CFO Abubakar Saban, who denied that it was a ‘loan’ deal, to admit that there are ‘complexities’ around the repayment model.
“Currently we are a break-ever business,” Saban said, adding: “Not even a break-even business.
“We struggle to deliver on our mandate.
“We know we can’t afford the current cost base.
“The investor first has to underwrite to cost base. Without that, one could argue there is a form of a loan.”
SARU President Mark Alexander admitted that if they don’t win a majority (75 percent) vote at Friday’s meeting, they will have to ‘tighten the belt’ – cut some projects – to live within their means and “go back to the drawing board”.
That makes Friday’s vote vital for SARU, who – by their own account – is on the brink, financially.
Advocate Salie had a pointed parting shot for SARU, who may have hoped for less vigorous questioning – perhaps even less informed members – during the session with the Portfolio Committee.
Apart from her opposition to Jurie Roux’s ongoing involvement in SARU, as a consultant’ she made it clear that the national body has not provided enough information and clarity for her to support the deal.
That is the kind of sentiment SARU would hope to avoid at Friday’s vote.
“I do not have enough information in front of me,” she said, adding that SARU failed to take the committee into confidence and convince them of the validity of the deal.
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