The South African Rugby Union (SARU), the governing body of the Springboks national team, is on the brink of finalizing a significant agreement with Ackerley Sports Group. The proposed $75 million investment is anticipated to further strengthen the already formidable Springboks, who are widely recognized as the top-ranked national rugby team globally and have secured the prestigious Rugby World Cup title four times.
The proposed agreement is set for completion in May, subject to crucial approval from SARU members. Ackerley Sports Group’s investment is designated for a new business venture that will consolidate all current and future revenue-generating assets of the Springboks and SARU. This strategic move aims to facilitate expansion in sponsorship, broadcasting, content, and match-day revenue. Notably, SARU’s share of the proceeds will be allocated towards funding the operational expenses of the amateur game in South Africa. It is important to note that SARU had previously been in talks with private equity firm CVC Capital Partners regarding a possible investment.
Under the terms of the impending arrangement, SARU will maintain majority ownership of the new entity, while ASG will acquire an approximate 20% stake. With a post-money valuation reaching a substantial $375 million, the highly-anticipated deal is poised to reshape the landscape of South African rugby. However, ASG declined to comment on specific deal terms.
In 2022, SARU reported revenue amounting to 1.54 billion rand, equivalent to $82 million based on current exchange rates. The proposed investment bears resemblance to the 2022 partnership between private equity firm Silver Lake and New Zealand Rugby, which oversees the illustrious All Blacks national team. The collaboration involved the establishment of a new company vested with commercial rights, into which Silver Lake injected up to $200 million for a stake ranging between 5.7% and 8.6% of New Zealand Rugby.
Chris Ackerley, in a recent interview, expressed profound admiration for the global stature of both the All Blacks and the Springboks, characterizing them as the foremost teams in the world today. Emphasizing the momentous nature of the undertaking, Ackerley articulated his eagerness to collaborate with SARU to elevate the Springboks brand to unprecedented global heights.
Ackerley Sports Group is currently in the process of setting up a dedicated special purpose vehicle for the investment and intends to raise external capital. The SPV, designated as “Win By One,” pays homage to the Springboks’ remarkable 2023 World Cup campaign, marked by consecutive one-point victories in the quarterfinals, semifinals, and final. The inception of Ackerley Sports Group took root in December, propelled by the enterprising spirit of twin brothers Ted and Chris Ackerley, who expanded their investment firm Ackerley Partners to embark on this transformative journey. Timothy Kirkwood, their London-based associate, is designated to oversee the pivotal Springboks partnership.
Referencing the team’s enduring legacy of success in the annals of international rugby, Kirkwood underscored the need to bridge the divide between on-field prowess and business performance. He also highlighted the compelling valuation relative to professional teams in other sports, heralding an era of renewed vigour and distinction for the Springboks.
The Ackerley family’s involvement in sports investments dates back to their patriarch, Barry, who acquired the NBA’s Seattle Supersonics in 1983, subsequently adding the WNBA’s Seattle Storm. The baton of sporting pursuits was taken up by the brothers, who ventured into investments with the Seattle Kraken expansion franchise, and recently solidified their role as investors with 49ers Enterprises for their majority control of the Leeds United Football Club.
The Springboks have been the symbol of South African Rugby Union’s international endeavors since 1891. The team left an indelible mark on the global stage with their historic triumph in the 1995 Rugby World Cup, a moment immortalized in the film “Invictus,” headlined by a talented cast and directed by Clint Eastwood. Building on this storied legacy, the Springboks soared to claim their fourth World Cup title last year.
Looking ahead, Kirkwood articulated a keen ambition to arrange an exhibition match for the Springboks in the United States, tapping into the burgeoning interest in rugby across American shores. With the U.S. scheduled to host the 2031 Rugby World Cup, the landscape of rugby stands poised for a compelling transformation and an unprecedented surge in popularity.
In the backdrop of this monumental partnership between SARU and Ackerley Sports Group, the future of the Springboks looks promising, heralding an era of unparalleled glory and resounding success on the global stage.