Ackerley Sports Group (ASG) will get control of the commercial rights to the Springboks rugby brand if a proposed deal goes ahead this week, a Johannesburg media group has said, citing a copy of a business plan it had seen.
In exchange for US$75 million paid over four years Ackerley will get a 20 per cent stake in a newly created commercial rights company and control of its board, Business Day said, citing the documents.
The proposal is to be voted on by the member unions of SA Rugby (SARU), which oversees the reigning world champion Springboks team, on October 17.
Ackerley, formed last year by brothers Christopher and Ted Ackerley of Ackerley Partners LLC, will take three of the seven voting board seats in the new company and as well as the right to appoint someone to the role of chair, the newspaper said. It would be permitted to sell its stake after eight years.
“This entity will oversee sponsorship, broadcasting, events, branding, and licensing related to the sport,” the SARU said in a statement earlier this month. “However, rugby affairs such as team management, coaching, contracting and competition management will remain under SARU’s jurisdiction.”
But, according to a “disgruntled” franchise which spoke to Business Day, there are “several red flags” in the proposed deal with ASG.