SA Rugby, which oversees reigning world champions the Springboks, expects sponsorship revenue to double by the 2027 World Cup on the back of a planned private equity deal that values commercial rights at $375 million. are doing.
The organization sold 20% of its shares to Seattle-based private equity firm Ackerley Sports at a general meeting on May 30, following the Springboks' successive World Cup victories, including last year's victory in France. Seeking approval to sell. SA Rugby Managing Director Leanne Oberholtzer said the group:
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In response to questions from Bloomberg News, Oberholzer said in an email that a deal was not needed “if all we had to worry about was the Springboks' balance sheet.” “But we are also a national federation and we need to support and promote rugby across the country, which feeds so many people.”
The agreement is part of a growing trend among the national federations of the world's most successful rugby teams to raise funds from private equity. Asset managers are increasingly looking to sports leagues and federations rather than teams to diversify investment risk.
Oberholtzer said SA Rugby is targeting sponsorship revenue of R800 million ($42 million) in 2027, about double last year's levels.
all blacks
In 2022, Silver Lake Management agreed to acquire a 7.5% stake in New Zealand Rugby's commercial operations for NZ$262.5 million ($160 million). New Zealand's All Blacks lost to the Springboks in last year's World Cup final. Rugby Australia borrowed AU$80 million ($52 million) from Pacific Equity Partners last year.
Mr Oberholtzer said Mr Ackerley was selected in December over Six Nations Rugby tournament investment firm CVC Capital Partners. He said SA Rugby was planning multiple briefings on the deal for General Assembly members before May 30.
According to Oberholtzer, under the agreement with Ackerley, South African Rugby will have sole responsibility for the sport, including team management, and SA Rugby will retain a majority stake in the company to be set up to retain the rights. Become.
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Seattle-based Ackerley Sports Group was founded last year by brothers Christopher and Ted Ackerley of Ackerley Partners LLC and invests in sports with a focus on leagues, teams, venues, media, technology and development. are doing.
The Ackerley family has owned stakes in several sports franchises, including the Seattle SuperSonics and Seattle Storm basketball teams, the Seattle Sea Dogs soccer team, and the Seattle Kraken hockey team. Last year, a private holding company for the family bought a minority stake in England's Leeds United Football Club.
The Springboks won a record four World Cups and gained global recognition, with the team once a symbol of apartheid being held up as an example of successful change.
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