Leicester Tigers end their nine-month search for a new owner
Leicester Tigers are no longer up for sale after the club pulled the plug on the process due to a lack of offers. It was June last year, on the back of the dividend received by CVC Capital Partners buy into the Gallagher Premiership, that the club was put on the market in the hope that a potential £60million sale could help the Tigers return to the top of English rugby again.
At the time, the CVC pay-out had left Tigers debt-free and club officials believed their set-up was now an attractive opportunity for an investor to grow commercial revenues and accelerate development plans.
Rugby Australia looking to follow New Zealand in makeshift Super Rugby competition
However, those aspirations have not come to pass in the nine months since, resulting in Leicester’s Wednesday morning announcement via their website that the club was now off the market and instead some new appointments had been made to the board.
“The board of Leicester Tigers confirms that the formal sale process initiated on June 25, 2019, under the city code on takeovers and mergers, has now ended and the company is no longer in an offer period as defined under the code,” read their announcement on leicestertigers.com.
“Despite a high level of interest from potential new investors, the board has concluded that it is unlikely an offer for the company will materialise from an investor who shares the club’s vision of the future and at a value attractive to shareholders.
“The board has made a number of appointments to ensure it has the necessary mix of skills and experience in order to implement its strategy for the club. It is delighted to announce the appointments of Fintan Kennedy and Duncan Green as non-executive directors.
“Taken together, the impact on an uncertain market of Brexit and now Covid-19 have created significant challenges for all clubs this season.
“It nonetheless remains the case that attractive growth opportunities are within English rugby’s grasp and will benefit clubs, players and fans alike.
“Given its status as the country’s premier rugby club in terms of supporter base and track record, the board is optimistic that its strategy for the club will return it to the top of the English and European game as rugby attracts new audiences and explores exciting new opportunities.”
Executive chairman Peter Tom said: “While we were pleased with the level of interest in the club, none of the prospective new investors were judged to fulfil our criteria.
“Now our immediate focus is on managing the ongoing impact of the Covid-19 pandemic and doing all we can to safeguard the wellbeing of Tigers staff, players and fans.
The date that seems to be the line in the sand for season 2019/20 https://t.co/dA7RCYMjYn
— RugbyPass (@RugbyPass) March 17, 2020
“We have devoted considerable energy to improvements on and off the field and remain confident that we have the right long-term strategy for the club.”
Kennedy brings a wide range of finance experience and is a fellow of the Institute of Chartered Accountants in England and Wales. He currently serves as finance director of Sealyham Investments and holds non-executive directorships with Super League Triathlon and the Financial Services Opportunities Investment Fund. He will chair the audit committee.
Green is managing partner of Pick Everard, which he joined in 1983. A chartered civil engineer, he is also a trustee and director of the Leicester Grammar School Trust, local charity Hope Against Cancer and a member of the Leicester Cathedral development board.
WATCH: RugbyPass goes behind the scenes at the Leicester Tigers academy
Comments on RugbyPass
I remember towards the end of the original broadcasting deal for Super rugby with Newscorp that there was talk about the competition expanding to improve negotiations for more money - more content, more cash. Professional rugby was still in its infancy then and I held an opposing view that if Super rugby was a truly valuable competition then it should attract more broadcasters to bid for the rights, thereby increasing the value without needing to add more teams and games. Unfortunately since the game turned professional, the tension between club, talent and country has only grown further. I would argue we’re already at a point in time where the present is the future. The only international competitions that matter are 6N, RC and RWC. The inter-hemisphere tours are only developmental for those competitions. The games that increasingly matter more to fans, sponsors and broadcasters are between the clubs. Particularly for European fans, there are multiple competitions to follow your teams fortunes every week. SA is not Europe but competes in a single continental competition, so the travel component will always be an impediment. It was worse in the bloated days of Super rugby when teams traversed between four continents - Africa, America, Asia and Australia. The percentage of players who represent their country is less than 5% of the professional player base, so the sense of sacrifice isn’t as strong a motivation for the rest who are more focused on playing professional rugby and earning as much from their body as they can. Rugby like cricket created the conundrum it’s constantly fighting a losing battle with.
3 Go to commentsOh wow… “But as La Rochelle proved in winning in Cape Town this season, a cross-continental away assignment need not spell the end of days.” La Rochelle actually proved quite the opposite. After traveling to Cape town and back they (back-to-back and current champs) got mercilessly thumped the next week. If travel is not the reason, why else would a full-strength powerhouse like La Rochelle get dumped on their @r$e$ one week later?
26 Go to commentsYou know he can land a winning conversion after the full time siren is up. (Even if it takes two attempts.)
5 Go to commentsA very insightful article from Jake. I would love to know how South African’s feel about their move to Europe. Do you prefer playing in Europe or want to go back to Super Rugby?
3 Go to commentspure fire
1 Go to commentsA very well thought out summary of all the relevant complications…agree with your ”refer the Cricket Test versus 20/20 comparison”. More also definitely doesn't necessarily mean better!
3 Go to commentsMust be something when you are only 19 y.o and both NZ and France want you. Btw he wasn’t the only new caledonian in french U20 as Robin Couly also lived in Noumea until 17. Hope he’s successful wherever he chooses to play.
7 Go to comments“Several key players in the Stade Rochelais squad are in their thirties” South Africans are going to hate the implications of that comment!
5 Go to commentsI know Leinster did a job on La Roche but shortly after HT Leinster were 30-13 ahead of them and at a similar time Toulouse were trailing Exeter. At 60 mins Leinster were 27 ahead but after 67 mins Toulouse were only 19 ahead before Exeter collapsed. That’s heavier scoring by Leinster against the Champions. I think people are looking at Toulouses total a little too much. I also think Northhampton are in with a real chance, albeit I’d put Leinster as favourites. If Leinster make the final I expect them to win by more than ten and with control.
5 Go to commentsHey Nick, your match analysis is decent but the top and tail not so much, a bit more random. For a start there’s a seismic difference in regenerating any club side over a test team. EJ pretty much had to urinate with the appendage he’d been given at test level whereas club success is impacted hugely by the budget. Look no further than Boudjellal’s Toulon project for a perfect example. The set ups at La Rochelle and Leinster are like chalk and cheese and you are correct that Leinster are ahead. Leinster are not just slightly ahead though, they are light years ahead on their plans, with the next gen champions cup team already blooded, seasoned and developing at speed from their time manning the fort in the URC while the cream play CC and tests. They have engineered a strong talent conveyor belt into their system, supported by private money funnelled into a couple of Leinster private schools. The really smart move from Leinster and the IRFU however is maximising the Irish Revenue tax breaks (tax relief on the best 10 years earnings refunded at retirement) to help keep all of their stars in Ireland and happy, while simultaneously funding marquee players consistently. And of course Barrett is the latest example. But in no way is he a “replacement for Henshaw”, he’s only there for one season!!! As for Rob Baxter, the best advice you can give him is to start lobbying Parliament and HMRC for a similar state subsidy, but don’t hold your breath… One thing Cullen has been very smart with is his coaching team. Very quickly he realised his need to supplement his skills, there was talk of him exiting after his first couple of years but he was extremely shrewd bringing in Lancaster and now Nienaber. That has worked superbly and added a layer that really has made a tangible difference. Apart from that you were bang on the money… 😉😂
5 Go to commentsNot sure exactly what went wrong for him at Glasgow but it’s pretty clear he ain’t Franco’s cup of tea. Suspect he would have been better served heading out of Scotland around the same time as Finn, Hoggy and Jonny!
1 Go to commentsBulls disrespected the Northampton supporters and the competition. Decide quickly, fully in or out.
26 Go to commentsI wonder if Parling was ever on England’s radar as a coach? Obviously Borthwick is a great lineout coach, but I do worry he might be taking on too much as both head coach and forwards coach.
1 Go to commentsJason Jenkins has one cap. When Etzebeth was his age he had over 80 caps. Experience matters. He will never amount to what Etzebeth has because he hasn’t been developed as an international player.
2 Go to commentsSays much about the player picking this gig over the easier and bigger rewards offered to him in Japan. Also says a lot about the state sanctioned tax benefits the Irish Revenue offers pro rugby players, with their ten highest earning years subject to an additional 40% tax relief and paid as a lump sum, in cash, at retirement. Certainly helps Leinster line up the financial ducks in a row to fund marquee signings like this!!! No other union anywhere in world rugby benefits from this kind of lucrative financial sponsorship from their government…
5 Go to commentsTrue Jordie could earn a lot more in Japan. But by choosing Leinster he’ll be playing with 1 of the best clubs in the world and can win a champions cup and URC…..
6 Go to commentsThanks for that Marshy, noticed you didn't say who is gonna win it. We know who ain't gonna win it - your Crusaders outfit. They've gone from having arguably the best Super Rugby first five ever, to having a clutch of rookies. Hurricanes all the way!
1 Go to commentsGeez you really have to question the NRLs ability to produce players of quality. Its pathetic. Dont the 25mil in Aus produce enough quality womens players. Sad.
1 Go to commentsBulls fan here, and agree 100% with the conclusion (and little else) of this article. SA sides should absolutely f-off from the champs cup until we get fair scheduling, equal support for travel arrangements and home semis. You know, like all the european teams get.
26 Go to commentsI’m yet to see why Grace would be an ABs contender. He’s pedestrian and lacks the dominance required of a top flight 8.
11 Go to comments