(Bloomberg) -- Ackerley Sports Group LLC will pursue a new deal for the commercial rights to the world champion Springboks rugby team after an initial bid for the South African organization failed.
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The Seattle-based group, which cited support for its efforts from South African sports minister Gayton McKenzie, said it will work with a professional adviser and will engage with any “approved South African consortium” to revive the deal.
The rugby group is at risk of financial collapse unless it bolsters its revenue by emulating rivals such as New Zealand’s All Blacks, which has conclued a private equity deal, according to SA Rugby President Mark Alexander. Ackerley’s exclusive negotiating period with SA Rugby lapsed at the end of last year. That was weeks after its $75 million bid for a 20% stake in an SA Rugby commercial rights company and effective control of its board failed to win support from the South African group’s member unions.
“ASG remains confident that its strategic value-creation plan should and will be part of any new proposal,” Chris and Ted Ackerley, the brothers who founded ASG, said in a statement on Monday. Ackerley wants to ensure that “any future plan is both effective and takes into account the needs of the member unions,” they said.
Prior to the vote on the ASG proposal, unions linked to South Africa’s richest men objected to it, the nation’s sports minister called for a postponement to the decision and local newspapers reported that a rival bid was being prepared.
“This vote derailed the efforts that we have made to globalize and commercialize the Springboks,” ASG said. “Furthermore, and importantly, this result has placed SARU back into financial peril,” it said, referring to the South African Rugby Union.
ASG, which said it had offered to include 50% South African involvement in its final proposal, indicated that McKenzie supports it’s continued involvement.
“We must find ways to actually engage and partner with well capitalized financial institutions – who know the business of sports – to bring our great teams and athletes to the international sports landscape,” McKenzie was cited as saying in the ASG statement. “The Ackerley Sports Group has shown, in their efforts to partner with SARU and its members, the insight and financial expertise our sports teams and leaders need.”