Victory for unions as SA Rugby agrees to appoint independent financial advisers

The country's heavyweight unions landed a significant victory on Friday after the South African Rugby Union (SARU) confirmed it would appoint a financial institution to review its financial position.

The decision was taken at a General Council meeting held at OR Tambo International in Johannesburg on Thursday where SA Rugby's members mandated the Executive Council and management to initiate a new process following the failure to reach the required 75% majority of a private equity investment proposal by the Ackerley Sports Group (ASG) in December.

READ | SA Rugby unions band together to plot way forward

Earlier in the week, the seven unions that in December were against the ASG private equity deal - the Bulls, Stormers, Sharks, South Western Districts, Griquas, Boland, and Free State - came together to provide SA Rugby with a 'blueprint' of due diligence and accepted practice they believe should be followed should such a deal be entertained again. 

In a signed letter that was sent by the unions and acknowledged by SA Rugby on Monday, half of the country's rugby bodies asked SA Rugby to set up a Transaction Committee (TC) of six people to manage any future potential equity deals.

The six, according to the letter dated 20 January, must consist of two SA Rugby executives appointed by SA Rugby, two executives from SA Rugby's members and/or its commercial affiliates, and two independent persons "with the necessary expertise in managing transactions of this nature, with a good understanding of the appropriate process and governance requirements (appointed by the other four members of the committee)."

Thursday's developments appear to be a move in that direction. 

"The first step in the new process would be to appoint the financial