SA rugby leaders have been pushing to sell a stake in their commercial rights, saying they face potential ruin if they do not

SA rugby will call in outside advisers to review its finances as it presses on with plans to sell a stake in the World Cup-winning Springboks to a private equity partner, the governing body said in a statement on Thursday.

An attempt last year to sell a 20% stake in a separate commercial rights company, established to try and make more money out of the national team’s success, came in for much criticism and was eventually rejected by the provincial unions.

But a review of the process will start with the appointment of a financial institution to advise members “on rugby’s financial sustainability and the role that a potential private equity investment might play,” said SA Rugby’s statement.

“We have been given a new mandate to start a new process to review our commercial and financial prospects and define the process,” added the organisation’s president, Mark Alexander.

“We will take a measured and consultative approach under the guidance of the financial advisers as we review the financial challenges and opportunities,” he added.

SA rugby leaders have been pushing to sell a stake in their commercial rights, claiming they face potential ruin if they do not.

But a $75m bid from Seattle-based Ackerley Sports Group for a 20% stake in the Commercial Rights Company, an entity created by SA Rugby to grow the value of its commercial activities, was rejected in December by the unions amid claims it was tantamount to selling the Springbok emblem and jersey, which SA Rugby denied.

“We don’t have a reserve fund, we’re a break-even organisation,” Alexander told the SA Parliament’s portfolio committee on sports in December.

“This deal will allow us to generate income and grow the game in SA,” he added, highlighting the financial crisis it suffered during the Covid-19 crisis.

SA Rugby generates about 90% of its revenue from the Springboks and franchise competitions.

But with nearly 50% of matches played outside the country, costs are high with SA’s weak currency also making it difficult to retain players lured by lucrative contracts abroad.

The Springboks won the last two Rugby World Cups but lag behind the commercial income of rivals New Zealand. SA Rugby generates $30m in annual revenue, compared with about $75m generated by the All Blacks.

On Thursday, Alexander said that although a loss would be reported for 2024, the work undertaken by management and strong commercial sales for 2025 had secured the organisation’s financial prospects for the next three years.

He did not give any figures.