Sensitive negotiations are under way between the EP Rugby Union and a high-powered business consortium which is bidding to take control of the Isuzu Southern Kings.
EP rugby boss Andre Rademan said the talks were at an advanced stage, and he hoped that a deal could be struck before the end of the year.
Rademan, apart from heading the EPRU, is also chair of the Southern Kings board.
Though a figure for the buyout remains a closely guarded secret, it is believed to be in the region of R50m.
The buyout bid was announced two months ago but a deal has yet to be struck.
Such is the sensitivity of the talks that insiders say the consortium, led by businessman Loyiso Dotwana, could walk away from negotiations if there are breaches of confidentiality.
The other members of the consortium are businessmen Gary Markson, Rory Stear and Kenny Govender and businesswoman Vuyo Zitumane.
“We have begun fruitful, round table talks,” Rademan said.
“The stakeholders, including SA Rugby, are negotiating on the matter.
“When a final deal is struck, we will make a proper announcement.
“I am hoping this can be done by the end of the year.
“All the executive members who sit on the Southern Kings board have met the consortium,” he said.
“Dates have been set up for different meetings and this is a process we are going through with follow-up meetings.
“I must emphasise these are very delicate negotiations, but I am pleased to say that, so far, the talks have been very open and frank.
“However, the final product has yet to be tabled to clubs.”
In August, plans for the buyout bid and the new sponsors Isuzu were announced at a sponsorship launch in Port Elizabeth.
SA Rugby declined to elaborate on the buyout bid.
The consortium is bidding for a majority shareholding in the team.
Though officials would not divulge how much the three-year Isuzu sponsorship is worth, it is believed to be a substantial amount for the ailing team, who were PRO14’s worst-performing side last season.
Thanks to the cash injection, there are plans to create an academy so that the Eastern Cape can retain and grow rugby talent.
Dotwana said at the launch that a new dawn beckoned for rugby in the province.
“We want to build a professional and competitive team for the long run,” he said.
“Our long-term ambition is to achieve incremental growth which, ultimately, will result in the Kings winning the PRO14 Championship.
“By creating an academy and team here, we want to retain the Eastern Cape’s talent.
“This is the home of black rugby. Our team will promote social cohesion in South African rugby.”
Kings coach Deon Davids will be hoping that a deal can be struck as soon as possible so that cash is made available to buy new players and assistant coaches.
This year, the Kings have won only one of their opening eight Guinness PRO14 matches and are struggling to make headway.
Their next match is against Irish outfit Connacht at the Madibaz Stadium in Port Elizabeth on November 25 – and they will be hoping to end a four-match losing streak.