Bold plan to privatise SA rugby gaining momentum
IF the proposed partnership deal between EP Rugby and Pro Rugby North America is to get off the ground, then SA Rugby must change its constitution to allow for up to 74% private ownership of South Africa’s six Super Rugby franchises.
And it is believed that such a game-changing amendment to the SA Rugby constitution could be made as early as next month when the sport’s bosses gather for a general meeting.
On Monday, SA Rugby president Mark Alexander, who is in Europe with the touring Springboks, met Pro Rugby North America chief executive Douglas Schoninger in London.
They spoke about a potential deal that could change the face of South African professional rugby.
The pair met at the World Rugby conference after Schoninger expressed his interest in acquiring the Nelson Mandela Bay junior, Currie Cup and Super Rugby teams.
At present, investors are limited to 49% ownership, and this is something that could put investors off when considering getting involved with professional commercial rugby.
“People must be aware of the present situation and the pathway ahead that could be out of reach for EP unless a deal can be structured to grow the game,” was the warning that the architect of the London meeting, Tony McKeever, issued.
McKeever is the former chief executive of the Southern Spears and founder of Mandela Bay Rugby.
Alexander has made it clear that he wants change to boost the South African professional game and make it more attractive to investors.
After he was formally inaugurated as SA Rugby president, he revealed his union was looking to increase the permitted private equity involvement at all levels from 49% to 74% and there was already interest from abroad.
McKeever said Alexander had shown refreshing and innovative leadership and was already assembling support for the idea.
“To be truly professional as in France, the UK and New Zealand, Mark is proposing that this ownership percentage be increased to 74% so the respective rugby unions still sit with a shareholding of 26%.”
Such a move would enable South African rugby to catch up with its counterparts in other parts of the world. McKeever believes such a change is vital and urgent.
“This is an absolute necessity, especially as Sanzaar are discussing shortly limiting the number of Super Rugby teams from 2018 onwards from 18 to 16 teams.
“Who then become the two casualties? Is it the Force and the Kings or the two newcomers, Japan and Argentina? “Would it not be better to increase Super Rugby to 20 teams and pull in a US team and a Pacific Island team and play two pools of 10 in which the two last placed teams in the premier division are relegated and the two top teams in the second division are promoted?” McKeever asked.