A Rugby deal: Fans could own Springboks shares for just ONE RAND

If a proposal by a local consortium is approved, Springbok fans will have the opportunity to invest in the world champions through a public share offering.

The move follows the rejection by SA Rugby’s member unions last week of a R1.4 billion deal to sell a 20% stake in the Springboks’ commercial rights, to the Seattle-based Ackerley Sports Group LLC.

While Ackerley retains an exclusivity period until the end of 2024 to submit a revised offer, local investors are positioning themselves as a competitive alternative.

A local consortium’s bold vision

According to Bloomberg, the consortium has submitted a proposal to acquire up to 40% of the Springboks’ commercial rights via a special purpose vehicle (SPV).

This joint venture comprises Altvest Capital Ltd., the investment platform EasyEquities, 27four Investment Managers Ltd., and RainFin Ltd.

If successful, the group plans to list the SPV on the Johannesburg Stock Exchange, enabling retail investors to purchase shares for as little as R1 through EasyEquities.

“The Springboks are a symbol of excellence and we have absolutely no doubt that if the opportunity presented itself for South Africans to invest in the Springboks, they will do so in the millions,” said Alvest’s Chief Investment Officer, Akshay Karan.

“No South African who loves this investment opportunity, or is passionate about the Springboks, should be excluded from investing at an amount that is affordable to them because the minimum entry point is too expensive.”

Inclusive investment opportunities in Springboks

The consortium’s plan includes provisions for institutions, venture partners, and high-net-worth individuals to hold stakes. It also proposes issuing a debt instrument to attract fixed-income investors.

According to a letter of interest submitted to Springboks governing body SA Rugby, the estimated value of the commercial rights is at least $375 million (R6.7 billion).

This makes the consortium’s potential bid competitive with Ackerley’s.

Additionally, Karan noted that their approach is designed to minimise fees and costs. This would address the concerns that were raised by SA Rugby’s member unions regarding the fee structure and governance in the Ackerley proposal.

SA Rugby has hardly turned a profit for over a decade. The governing body has told lawmakers it risks collapse unless it can boost revenue or secure a commercial deal.

South Africa’s national men’s rugby team has won a record four Rugby World Cup titles. This includes back-to-back titles in 2019 and 2023.

The Springboks also recently clinched the Rugby Championship trophy—giving them bragging rights as the best team in the Southern Hemisphere—just before a clean sweep of Scotland, England and Wales in the UK last month.