SA Rugby CEO Jurie Roux talks to the media after France was announced as the host nation for the 2023 Rugby World Cup at Royal Garden Hotel in London on 15 November 2017 (Photo by Bryn Lennon/Getty Images)
- SA Rugby CEO Jurie Roux confirmed talks with private equity firms that could buy about 25% in SA Rugby’s next ventures.
- Four or five companies interested in rugby equity” says Roux.
- Private equity deals could influence whether South Africa remains in Sanzaar or moves to the northern hemisphere.
You can’t beat them without joining them.
That’s the gist of the message from SA Rugby CEO Jurie Roux, who said the door was open for private equity partnerships in future marquee competitions involving South Africa.
In May, CVC Capital Partners acquired a 28% stake from Celtic DAC in its PRO14 competition for a reported £120 million (approx. R2.5 billion), to add to their 27% stake in the English Premiership.
Advanced talks are also said be going on regarding CVC Capital Partners getting a portion of the Six Nations, which would see England, France, Ireland, Scotland, Italy and Wales pocket further investment revenue.
Register your interest for the British & Irish Lions tickets in South Africa 2021
Roux does not want South Africa left behind financially, which could result in Northern Hemisphere teams pulling away on the field as well as in the boardroom.
“There’s a lot of talk about private equity in rugby,” Roux told media via Monday’s digital press conference.
“I am on record during the past four years saying that private equity will have a massive influence on rugby and will eventually probably control rugby.
“Yes, we are in discussion with private equity companies. We would be failing in our jobs and duties if we didn’t explore all of those avenues. Have we made a decision? No, we have not.
“As we stand, PRO14 and the English Premiership have done it already, while the Six Nations is busy doing a deal.”
The Times, UK, reported in February this year that two private equity firms – CVC Capital Partners and Silverlake Partners – were locked in a battle to buy a stake in SA Rugby. Roux said there were about five firms around the globe looking for a share in rugby.
If CVC Capital Partners win over the Six Nations countries and SA Rugby, that could see South Africa joining the European countries and cutting ties with Sanzaar, to form a Seven Nations or Eight Nations (including Japan).
“I don’t think there is a union in this world that is not currently talking to different equity firms,” Roux said.
“There are only about four or five within the sporting environment that are really interested and you will see a number of those [deals] come out in the press all over the world.
“They’re here and they’re here to stay. You’re either an early joiner or a late joiner but join you will. If the whole world is going to private equity, you’re not going to be the only union that’s not part of it.”
Roux cautioned that, although a lot of the talk was about boosting the world champions’ coffers, the impact of the coronavirus pandemic had driven the sport’s value right back down. However, the Springboks winning the World Cup in Japan last year and the imminent British and Irish Lions tour saved South Africa’s commercial appeal.
“Then again, private equity is going to look completely different in terms of their offers in a world that will be significantly different for all of us, based on revenues and commercials,” said Roux.
“We will all live in a world where the pot will be a lot smaller and we are all fishing in that same pond. We need to adapt to that, so too will private equity.
“I would not put it past them to see it as an opportunity to buy something a lot cheaper based on the value that they can derive from it now, because all of our commercial values are down.”
