SA Rugby, the organization responsible for South Africa’s World Cup-winning Springboks rugby team, expects to bolster its sponsorship revenue. The organization, propelled by Springboks’ successive World Cup victories, including the most recent in France, is pursuing a private equity deal to double its revenue by the 2027 World Cup. The deal values its commercial rights at $375 million (around R7.1 billion).
Rian Oberholzer, Managing Director of SA Rugby, revealed that the organization intends to garner approval for the sale of a 20% stake in its rights to Seattle-based private equity firm Ackerley Sports Group at a general council meeting on 30 May. Oberholzer stressed that while maintaining the Springboks’ balance sheet was a primary concern, the organization also had broader responsibilities. As a national federation, their function extends beyond just one team, and that they have an obligation to nurture and foster rugby on a countrywide scale.
This impending deal is in line with the growing trend among the national federations of globally successful rugby teams to build funds through private equity investments. Asset managers are increasingly diversifying their risk by investing in sports federations and leagues rather than individual teams.
SA Rugby, for their part, hopes to raise sponsorship revenue to R800 million by 2027, a figure nearly double the previous year’s level, as detailed by Oberholzer.
In 2022, Silver Lake Management secured a stake in New Zealand Rugby’s commercial activities, adding to the trend of private equity moves in rugby. Meanwhile, Rugby Australia derived substantial funds from Pacific Equity Partners last year.
Ackerley Sports Group found favour with CVC Capital Partners, an investor in the Six Nations Rugby competitions. Founded by brothers Christopher and Ted Ackerley of Ackerley Partners LLC, the Seattle-based group concentrates its investments primarily in the sports industry with interest in leagues, teams, venues, media, technology, and development.
The Ackerley family has had significant stakes in numerous sports franchises, including basketball teams Seattle SuperSonics and Seattle Storm, soccer team Seattle Seadogs, and the Seattle Kraken ice hockey team. A private holding firm for the Ackerley family even secured a minority interest in England’s Leeds United Football Club last year.
South African rugby unions are set to retain complete authority over sporting matters like team management under the proposed deal. Moreover, SA Rugby plans to keep a majority stake in a new company designed to hold the rights. The Springboks have garnered global fame with a record four World Cup victories. Once an emblem of apartheid, the team is now celebrated as an example of successful transformation.
