American Investors WP

Cornal Hendricks (c) of the Bulls is tackled by Herschel Jantjies (l) and Jean-Luc du Plessis (r) of the Stormers during the 2020 Super Rugby game between the Stormers and the Bulls at Newlands Rugby Stadium in Cape Town on 8 February 2020 © Ryan Wilkisky/BackpagePix

American investors keen on controlling stake in Stormers and WP

The New York-based MVM Holdings have approached Western Province Rugby over the possible acquisition of a controlling stake in their teams.

American Investors WP

Cornal Hendricks (c) of the Bulls is tackled by Herschel Jantjies (l) and Jean-Luc du Plessis (r) of the Stormers during the 2020 Super Rugby game between the Stormers and the Bulls at Newlands Rugby Stadium in Cape Town on 8 February 2020 © Ryan Wilkisky/BackpagePix

Western Province Rugby Football Union are reportedly considering an offer from an American investment consortium, keen on obtaining a controlling stake of the Stormers franchise and the Union.

American investors keen on Stormers and WP

According to an Independent Media report the American group have extensive experience in sports team ownership. The group have a controlling stake in NBA basketball team the Milwaukee Bucks.

Western Province Rugby Football Union are however reportedly unwilling to surrender a controlling to the New York-based MVM Holdings. MVM are not willing to accept a 49% stake in the team and have insisted that this is an all or nothing kind of deal.

South African-born businessman Marco Masotti is at the heart ot the consortium and told IOL: “The Western Province RFU has come back to us with the concern that they should keep the controlling share, but that they would give us an equitable share of the Board (of the Stormers).

“They want to keep control of rugby affairs and we could control the commercial affairs, but that wouldn’t work for us. 

“There needs to be one controller and the guys that are involved in this bid have extensive experience in enterprises of this kind — we are talking about owners of NBA and ice hockey teams.”

Great potential

Masotti said that the group sees great potential in the Stormers and the City of Cape Town which is home to the team.

“Our discussions with Western Province are ongoing and they are going to come back to us regarding our concerns.

“The sport of rugby is stressed and needs change to survive and then flourish, and we see so much potential in Cape Town and the Stormers as a brand — they have iconic figures in an exciting team based in one of the world’s great cities.

“We see great opportunities to link the Stormers with (NBA team) Milwaukee Bucks and grow the brand in Europe and States,” Masotti added.

Western Province rugby facing uncertain future

Western Province rugby faces an uncertain future with the union looking to sell off their iconic home in Newlands Stadium.

These investors have promised in excess of R100 million to the union for control of both Western Province Rugby and the Stormers Super Rugby franchise. 

The WPRFU saw a R110 million deal with Investec to redevelop Newlands stadium fall through. The Union has now encumbered itself with further debt in order to pay amounts owed to both Investec and Remgro.