The Minister of Sport, Arts and Culture Gayton McKenzie’s says he has always been in the loop about SA Rugby’s proposed equity deal despite some opposition parties accusing him of “sleeping on the job”.
The deal has been a hot topic of discussion since Monday, after seven of the country’s 14 rugby unions sent a letter to Alexander and CEO Rian Oberholzer to postpone the meeting, citing some concerns.
SA Rugby needs the support of 75% of unions for the ASG deal to be pushed through.
SA Rugby then postponed its planned Special General Meeting (SGM), which was supposed to take place on Thursday to consider the proposed R1.3 Billion deal with United States-based Ackerley Sports Group (ASG) for the private equity investment in the sport’s commercial rights following a request by McKenzie.
In a letter to Alexander, McKenzie stated that he “be fully apprised about the particulars surrounding this proposed deal, or any deal that may be agreed to through your (SA Rugby) structures”.
On Thursday morning in Johannesburg, during his speech on his department’s performance during the first 100 days of the Government of National Unity (GNU), McKenzie said he had been informed and consulted on the deal since he was appointed minister.
“I just want to bring context because I saw other political parties say I didn't even know about it. ‘I was sleeping on the job’,” McKenzie said.
“Three months ago Saru met with me and they presented the deal to say ‘this is what we want to do’, we we need money’. There's no money in SA Rugby. Most rugby unions around the world and federations are experiencing a cash crisis.
“When I looked at the deal, I said to them we will meet in one week. They came in after one week. I said to them there's something I don't agree with. There are no South Africans in this deal.
“They said ‘thank you minister, we will come back to you’. They then came back and they said ‘minister we have now included South Africans in the deal’.”
“I didn't see this deal the other day when some political party was giving a statement,” McKenzie added.
McKenzie said he wrote to Alexander to postpone the meeting and the vote after some of the country’s unions approached his office to complain about the proposed deal.
A letter that was undersigned by the Lions, Sharks, Blue Bulls, Western Province, Free State Cheetahs, Griquas and Boland, opposing the deal was also leaked to the media on Monday.
“My office got complaints from the rugby union presidents. They were supposed to vote today (Thursday), but I then said stop that meeting, saying let us meet again, so everybody can be happy with the deal. So that's where we are with the deal.”
McKenzie added that he was cautious not to interfere in SA Rugby’s business, as government intervention could lead to the Springboks being banned from competing internationally.
“The law of FIFA and the international rugby federations, you can't interfere in soccer and in rugby. You can only do it on a certain level,” the sports minister said.
“So I can only urge, but I can't really fully instruct because that might be seen as interference and then you get banned.
“I've engaged with Ackerley, so that I can make sure that the Springboks’ rights are not being sold for a song. So I hope I've made that one clear enough.”
@JohnGoliath82