An All Blacks streaming platform is just one of the potential fund sources being considered by NZR
New Zealand Rugby has private equity groups lining up to invest in the All Blacks, with the national body expected to soon decide whether it is willing to enter formal discussions.
The Herald understands that several investment consortiums have held exploratory talks with NZR to identify specific opportunities with the All Blacks, which are separate to any plans the various venture capitalists may have to try to buy a stake in the Rugby Championship and Super Rugby.
NZR has long sought a means to unlock the true commercial worth of the All Blacks, whose brand recognition is in line with sporting giants Manchester United and Real Madrid but whose revenue is only a fraction of the numbers posted by those iconic clubs.
There’s no sense yet that NZR will commit itself to working with a private equity group, although sources have said it would seem inevitable that developments elsewhere will push the national body towards trying to strike a deal.
World Rugby will meet this week and is expected to ratify a deal that will see global private equity group CVC Capital take a 15 per cent stake in the commercial rights of the Six Nations.
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They already have major stakes in the English Premiership and Pro D14 and are one of several interested parties who are eagerly looking for opportunities to invest in Southern Hemisphere rugby.
Sanzaar is yet to reach agreement on whether it is ready to enter negotiations as like NZR, it has not fully assessed all the consequences of having an external shareholder.
But given the direction in which the Northern Hemisphere is heading and the multiple possibilities which exist in regard to how private equity could be utilised, NZR is expected in the next few months to make the historic decision to work with an outside investor.
They have also made clear in the preliminary findings of their major review of domestic rugby that generating new revenue is a major part of their overall strategy.
And what may sit top of their list is to explore the possibility of selling All Blacks digital content direct to the consumer in offshore markets.
This could be the biggest change to the face of the game in New Zealand since the sport went professional a quarter of a decade ago.https://t.co/0IhBI6pTsd
— RugbyPass (@RugbyPass) February 27, 2020
For most of the professional era, sports bodies have targeted broadcast rights as their main source of income, but as technology has changed and viewing habits with it, digital rights now sit as the potentially more lucrative area to exploit.
NZR has long-toyed with the idea of owning its own streaming platform. An All Blacks-owned and operated digital offering, available globally to view tests and wider content about the team and its players, has the potential to dramatically change NZR’s income flow.
But there are significant costs in building the technology and risks attached in protecting content and successfully marketing and distributing it – hence the attraction of private equity groups who have deep pockets and expertise.
NZR signed an improved broadcast deal with Sky TV late last year but it’s believed that doesn’t prevent them from creating additional means to generate digital revenue.
The National Basketball Association in the USA has broadcast contracts with several TV companies and yet also owns its own digital platform where fans from around the world can buy a global pass.
NZR could effectively do the same, where the All Blacks tests in July and November are broadcast by Sky TV and are also available digitally around the world on an NZR-owned platform.
How are @CrusadersRugby able to not just produce the best talent in New Zealand, but also hold onto that talent for considerably longer than any other team? CEO Colin Mansbridge explains. #SuperRugbyhttps://t.co/MdXRQd1Cof
— RugbyPass (@RugbyPass) February 27, 2020
A private investor could fund the upfront and ongoing costs and take a share of the generated subscription revenue.
NZR doesn’t own the rights to the Rugby Championship – these are held by Sanzaar – but a major revamp of the international game to make the July and November tests more appealing continues to be discussed.
Having seen a 12-team global league proposal rejected last year, the major playing nations remain determined to build meaning into fixtures outside of the Six Nations and Rugby Championship.
NZR needs to be positioned so it can financially benefit from any changes to the test calendar.
A spokesperson for NZR confirmed that the national body is exploring all its commercial options but is not in formal talks with any party at this stage.
This article first appeared on nzherald.co.nz and is republished with permission.
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Comments on RugbyPass
I hope they didn’t pay Jones fee?
2 Go to commentsTo be fair, the teams he's had to put out are reminiscent of those available to Gatland during his horrible run at the Chiefs in late 2020. Anyway, he's only got a two year contract and Wellingtonian Tamati Ellison will be ready by then, as will a lot of talented youngsters (like the Chiefs Gatland blooded). The Crusaders are planning for the long term.
4 Go to commentsGreat to see more community spending leading to higher participation in the community. It's a long road but that's a good first step.
2 Go to commentsPoetic justice for trying to sell him to Australia as another kiwi saviour coach, not ! Deans was just as bad actually but McCaw and Carter covered up for him. That’s why they didn’t want him as All Black coach, even after Graeme Henry’s bumbling effort in 2007.
4 Go to commentsSACK HIM !
4 Go to commentsSafas are so triggered by Ireland. 3 consecutive losses, incl RWC. 8 losses out of last 12 Tests. Always excuses, of course, with Bok fans. Now Rassie with his “88%” nonsense, the Claytons Excuse is an embarrassment to Bok teams of the past when every test mattered. Their fickle mojo will be on edge for the Ireland tour. Have the referees been appointed yet ? They will need security. Have WR laid out strict guidelines for TMO’s and replays on the stadium screens ? Will the constant stoppages from Bok forwards for cramps and bootlaces be tolerated ? We’re not talking a dominant Springbok team here, they won the LOTTO Cup and they know it whether they admit it or not. The Disney doco has their fans positively fermenting internally, its going to be a nasty hangover if they get beaten on home soil. What will the excuses be then……
96 Go to commentsGreat role model.
2 Go to commentsOne significant tell, not a single Waratahs player stopped to whinge to the ref about Finau’s tackle. They got on with playing the game. Great tackle.
8 Go to commentsWouldn’t be a bad move if Ireland pulled into SA with a young side. Particularly in Pretoria. Invaluable experience getting thumped in the bosveld.
96 Go to commentsIreland. The Princess Diana of Rugby. I never cheered so much for a team as i did for the All Blacks in that QF.
96 Go to commentsWill be great to see the Leinster first XV back in action again after their cotton wool time…
1 Go to commentsLooked up Grant Constable on google and reply was doppelgänger for Ben Smith
96 Go to commentsIt is so good that we now all get excited and debate who is best and emotionally get involved. We all back our teams which is great. Up until about 15-20 years ago, NZ was basically on its own, and then Saffa, Aussie and sometimes French and English were there. We now have at least 5-6 really top sides and another 4 who keep improving. This is so healthy. So we should not resort to rubbish comments and unhealthy debate, but rather all be chuffed that the product we watch is not competitive, exciting and often uncertain. It would be so good if World Rugger could find a way to align the rules to professional players as well as spectators. Live rugby games are SO boring as there is SO much down time as we wait for refs and TMOs and whoever else to look at every small event going back endless phases with the hope of eventually find a minute infringement to then decide cancel what was a wonderful try. This is the ultimate cork back in the bottle moment and feels like every balloon is always being popped. Come on- we must be better with the rules.
96 Go to comments“upon leaving said establishment I tripped over a stool knocking some bottles into the air and as I fell I accidently dislodged a police officer’s teaser who was passing by on an unrelated matter there by landing on said taser which caused it to discharge 50,000 watts into me. Out of shock I shouted Ireland are going to win the world cup. Upon waking up I apologised for the distress caused by my Ireland comment. The matter is closed. If you wish to pursue this matter may I remind you what I told Wayne Barnes when he sent me off. I AM A BIG ASS MAN”. Or was it “I AM A BIG ASS, MAN” or was it “I AM A BIG ASSMAN”?
2 Go to commentsThe only championship the Boks hold are: Great value for the incompetence of referees during the RWC Moaning endlessly and champions of spewing utterly ignorant 💩 at all times. Displaying the dangers of a third world education End of.
96 Go to commentsSouth Africa and Rassie do a phenomenal job of treating the 4 years in between World Cups as nothing more than a training exercise to build squad depth. The Six Nations money that keeps Irish rugby afloat is unfortunately too important to allow the same approach, and basic population size means we'll never get close to matching the depth of South Africa, England and France. That being said, Irish rugby is in a relatively good place and slowly improving inch by inch. If the other three provinces can pull the finger out and actually develop some players it'd be even better.
96 Go to commentsGood on Clarke for taking on the criticism and addressing his deficiencies, principally his laziness.
2 Go to comments“It is the people’s favourite against the actual favourite. It is the people’s champions against the actual champions. I’m joking, but it’s going to be a fantastic series.” Why did Darcy make that joke knowing it would be used as click bait? Why did RP headline it as a serious comment? Anyway, the tired comment isn’t very astute. SA players may have played more games etc. Darcy over estimated as a pundit.
96 Go to commentsNot sure Frisch will ever make the French team with Depoortère and Costes waiting in the wings to take over from Danty and Fickou.
1 Go to commentsThe Irish are tired and the Boks are old. The test series won't confirm who is best in the world, it will confirm which team needs to pursue the task of rebuilding with the most urgency.
96 Go to comments