The SA Rugby Union (Saru) is technically insolvent after reporting its biggest loss in nearly 30 years in the 2024 financial year, with the governing body blaming it on the failure to bring in an equity partner.

However, a strong start to 2025 has improved the outlook considerably.

A Business Day report says the nearly R100m loss in 2024 came after the union’s deal to sell 20% of its commercial rights to US private equity firm Ackerley Sports Group (ASG) for $75m (R1.3bn) fell through when the proposal failed to garner the required 75% support of Saru’s member unions in December.

In his letter to member unions and other stakeholders published in the union’s annual report last week, Saru CEO Rian Oberholzer said the financial pressures confronting SA rugby were mirrored globally and most leading unions continued to report substantial losses.

‘The necessity to address short-term financial pressures became an urgent priority in early 2025, prompting decisive action to stabilise the organisation. However, the absence of an equity agreement resulted in Saru reporting its largest financial deficit since professionalisation in 1996 – R95m,’ Oberholzer wrote.

‘This outcome underscores the considerable investment required to sustain participation in elite international competitions, including the Vodacom United Rugby Championship and the Investec Champions and Challenge cups,’ he said.

‘The events of 2024 have demanded resilience, agility and strategic foresight, particularly in light of the unexpected pivot away from private equity investment. While challenges remain, Saru is steadfast in its commitment to sustainability, innovation and competitive excellence.’ 

He said the underwriting of national rugby operations was an intricate and formidable challenge for private investors and that future negotiations must prioritise ‘transparency and early alignment with member unions to mitigate commercial and reputational risks’.

Full Business Day report