MVM Holdings did buy a controlling stake in the Sharks. The rugby unions remain in controlĬVC is looking at around a 20% stake in SA Rugby, nowhere near a controlling interest.
As mentioned earlier, revenue streams are changing, so relying on television rights and sponsorships is probably not sustainable. South African viewing audience ensures that SA Rugby earns a sizeable chunk of its income through television rights. The biggest eye-opener would have been the years around 2016 when long-time sponsors ditched both the Springboks and the Currie Cup competition. The reality for South African rugby is that the local currency is weak in international terms.
Is Springbok Rugby for sale? The reality of facts: Cash flow
Rugby 08 for sale professional#
In South Africa, the relationship between amateur clubs and the professional arm, can be very fractious. The one thing any potential equity partner would do well to observe is to alienate the amateur club system that exists below the professional level. It would make no sense to buy into a strong brand and then change the nature of the brand or get involved with team matters. They would buy into an organization with an already strong brand that could be enhanced by handling the business side of the operation. Usually, they buy into more than that though. The only time this would be a real concern is if an equity partner bought out a team or franchise that is struggling financially with the intent of completely re-skinning it and creating a completely new entity. What would equity partners not do?Īlthough there is a lot of negativity and suspicion from fans who fear the changes investment companies might make to the game they love or the teams they support. To use a cliche used in business, if you do what you did last year, you have gone backward. It would be foolhardy of any business to ignore these changes and be left behind. Equity partners of the type considering investing in top-level sport have realized that there has been a shift in media consumption as well as revenue streams. Television rights have always been the life-blood of national rugby unions and competitions. They will therefore be hands-on in ensuring that their investment has the best chance of giving them a return. As investors, they are not in it for brand exposure or charity. They bring world-class management to the organizations they invest in. However, there is much more than that on the table. The first and most obvious contribution is the cash injection.
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