South African Rugby Seeks Financial Revamp with Private Equity Investment

South African rugby plans to bring in external advisers to review its finances while preparing to sell a stake in the World Cup-winning Springboks to private equity. Previous attempts faced criticism, but a renewed effort aims to ensure financial sustainability amid high operational costs and comparative commercial revenue shortfall.

South African rugby is set to enlist external advisers for a financial review, as the sporting body considers selling a stake in the Springboks to private equity, according to a Thursday statement. This move follows criticism of a prior proposal to sell a 20% stake in a commercial rights company.

Despite last year's rejection by provincial unions of a $75 million offer from the Ackerley Sports Group, SA Rugby president Mark Alexander emphasized a fresh mandate to explore financial opportunities with external guidance, highlighting the federation's financial difficulties exacerbated by the COVID-19 crisis.

The Springboks, who are heavily reliant on revenue from international matches, face challenges from the weak South African currency, which complicates retaining talent amidst foreign contract offers. Nonetheless, Alexander assured that strategic decisions made by management promise financial stability for the coming three years.

(With inputs from agencies.)