The new rugby deal that puts more pressure on Super Rugby's future
Rugby’s move towards a private-equity driven future has gathered pace with reports that CVC Capital Partners’ splurge into the Pro14 will bring the concept of a club world cup closer to reality.
The move has also heightened the contrast and potential divide between the cashed-up Northern Hemisphere professional leagues, and the fragile shell of Sanzaar in the south.
The Luxembourg-based buyout group paid $400 million for a 27 per cent stake in English Premiership Rugby two years ago and added the cross-border Pro14 – a tournament involving clubs from the three Celtic nations (including Northern Ireland), Italy and South Africa – to their portfolio over the weekend.
The deal, which had been put on ice during the early stages of the Covid-19 crisis, sees the equity group tale a 28 per cent stake in the tournament after paying $240m.
“[CVC has] a strong belief in the long-term potential of rugby?for the fans, the players and the clubs, and what we can achieve?in partnership with?Pro14,” said the company in a statement.
While the immediate benefit of the partnership is a massive cash injection into a tournament that will be, like every major professional sports league, affected by the coronavirus pandemic, the ripple effect of the deal is likely to be felt around the rugby world.
South Africa will likely increase their involvement in the competition from two teams – the Cheetahs and Kings – which could expedite their long talked-about exit from Super Rugby, although they have expressed a desire to retain a presence in the south also.
Of greater importance to the hoped-for renovation of rugby’s chaotic global calendar, it is believed CVC will seek alignment between its investments – its $600m deal to buy into the Six Nations is also back on track according to a report in London’s Financial Times – to play a leading role in creating a global club world cup.
That move should prompt New Zealand Rugby to press fast forward on Aratipu, the review into the future of Super Rugby. It is crucial that NZR has a workable, saleable product to take to market with some urgency.
At the moment the contrast is uncomfortable for those charged with keeping the best players in the game in New Zealand: private money is being poured into Europe’s big tournaments; nobody yet knows with any certainty what Super Rugby will look like in 2021.
EXCLUSIVE
The eldest son of legendary All Black @ZinzanBrooke8 has signed his first pro contract, writes @chrisjonespress https://t.co/S8c1HYlyrK
— RugbyPass (@RugbyPass) May 25, 2020
This month, the Herald revealed that the national body had been wooing global equity partners, including multi-billion dollar US firm Silver Lake, a tech specialist that has also successfully invested in mixed martial arts phenomenon UFC, the Madison Square Garden Company (which owns the New York Knicks and New York Rangers), and Manchester City’s parent company.
“You would set up a subsidiary company of NZ Rugby and get investment into that company in some form of partnership,” a senior NZ Rugby source said. “You put commercial assets into that company — whether that’s in combination with Sanzaar partners and something like Super Rugby in its reincarnated form, or the Rugby Championship.”
The source also noted the NZR was “miles away” from signing a deal, but the Pro14 deal and continued uncertainty over Sanzaar’s future should rid the national body of any complacency.
CVC’s massive investment in Northern Hemisphere rugby (and to an extent South African) points to their investment belief that rugby’s reach and commercial opportunities will continue to rise in the wake of the pandemic.
NZR will now be acutely aware they cannot afford to be left behind.
Comments on RugbyPass
I bet he inspired those supporters just as much.
1 Go to commentsBen Smith Springboks living rent free in his head 😊😂
67 Go to commentsGood to hear he would like to play the game at the highest level, I hadn’t been to sure how much of a motivator that was before now. Sadly he’s probably chosen the rugby club to go to. Try not to worry about all the input about how you should play rugby Joey and just try to emulate what you do on the league field and have fun. You’ll limit your game too much (well not really because he’s a standard athlete like SBW and he’ll still have enough) if you’re trying to make sure you can recycle the ball back etc. On the other hard, you can totally just try and recycle by looking to offload any and everywhere if you’re going to ground 😋
1 Go to commentsThis just proves that theres always a stat and a metric to use to justify your abilities and your success. Ben did it last week by creating an imaginary competition and now you did the same to counter his argument and espouse a new yardstick for success. Why not just use the current one and lets say the Boks have won 4 world cups making them the most successful world cup team. Outside of the world cup the All Blacks are the most successful team winning countless rugby championships and dominating the rankings with high win percentages. Over the last 4 years statistically the Irish are the best having the highest win rate and also having positive records against every tier 1 side. The most successful Northern team in the game has been England with a world cup title and the most six nations titles in history. The AB’s are the most dominant team in history with the highest win rate and 3 world cups. Lets not try to reinvent the wheel. Just be honest about the actual stats and what each team has been good at doing and that will be enough to define their level of success.
19 Go to commentsHow is 7’s played there? I’m surprised 10 or 11 man rugby hasn’t taken off. 7 just doesn’t fit the 15s dynamics (rules n field etc) but these other versions do.
7 Go to commentsPick Swinton at your peril A liability just like JWH from the Roosters Skelton ??? went missing at RWC
14 Go to commentsLike tennis, who have a ranking system, and I believe rugby too, just measure over each period preceding a world cup event who was the longest number one and that would be it. In tennis the number one player frequently is not the grand slam winner. I love and adore the All Blacks since the days of Ian Kirkpatrick when I was a kid in SA. And still do because they are the masters of running rugby and are gentleman on and off the field - in general. And in my opinion they have been the majority of the time the best rugby team in the world.
19 Go to commentsHaving overseas possessions in 2024 is absurd. These Frenchies should have to give the New Caledonians their freedom.
21 Go to commentsBell injured his foot didn’t he? Bring Tupou in he’ll deliver when it counts. Agree mostly but I would switch in the Reds number 8 Harry Wilson for Swinton and move Rob Valentini to 6 instead. Wilson is a clever player who reads the play, you can’t outmuscle the AB’s and Springboks, if you have any chance it’s by playing clever. Same goes for Paisami, he’s a little guy who doesn’t really trouble the likes of De Allende and Jordie Barrett. I’d rather play Carter Gordon at 12 and put Michael Lynagh’s boy at 10. That way you get a BMT type goalkicker at 10 and a playmaker at 12. Anyways, just my two cents as a Bok supporter.
14 Go to commentsThanks Brett, love your articles which are alway pertinent. It’s a difficult topic trying to have a panel adjudicating consistently penalties for red card issues. Many of the mitigating reasons raised are judged subjectively, hence the different outcomes. How to take away subjective opinions?
9 Go to commentsYes Sir! Surprising, just like Fraser would also have escaped sanction if he was a few inches lower, even if it was by accident that he missed! Has there really been talk about those sanctions or is this just sensational journalism? I stopped reading, so might have missed any notations.
9 Go to commentsAI is only as good as the information put in, the nuances of the sport, what you see out the corner of the eye, how you sum up in a split second the situation, yes the AI is a tool but will not help win games, more likely contribute to a loss, Rugby Players are not robots, all AI can do if offer a solution not the solution. AI will effect many sports, help train better golfers etc.
45 Go to commentsIt couldn’t have been Ryan Crotty. He wasn’t selected in either World Cup side - they chose Money Bill instead. And Money Bill only cared about himself, and that manager he had, not the team.
28 Go to commentsYawn 🥱 nobody would give a hoot about this new trophy. End of the day we just have to beat Ireland and NZ this year then they can finally shut up 🤐
19 Go to commentsTalking bout Ryan Crotty? Heard Crotty say in a interview once that SBW doesen't care about the team . He went on to say that whenever they lost a big game, SBW would be happy as if nothing happened, according to him someone who cares would look down.. Personally I think Crotty is in the wrong, not for feeling gutted but for expecting others 2 be like him… I have been a bad loser forever as it matters so much to me but good on you SBW for being able to see the bigger picture….
28 Go to commentsThis sounds like a WWE idea so Americans can also get excited about rugby, RUGBY NEEDS A INTERNATIONAL CALENDER .. The rugby Championship and Six Nations can be held at same time, top 3 of six nations and top 3 of Rugby championship (6 nations should include Georgia AND another qualifying country while Fiji, Japan and Samoa/Tonga qualifier should make out 6 Southern teams).. Scrap June internationals and year end tours. Have a Elite top six Cup and the Bottom 6 in a secondary comp….
19 Go to commentsThe rugby championship would be even stronger with Fiji in it… I know it doesen’t fit the long term plans of NZ or Aus but you are robbing a whole nation of being able to see their best players play for Fiji…. Every second player in NZ and AUS teams has Fijian surnames… shame on you!!! World rugby won’t step in either as France and England has now also joined in…. I guess where money is involved it will always be the poor countries missing out….
90 Go to commentsNo surprise there. How hard can it be to pick a ball off the ground and chuck it to a mate? 😂
4 Go to commentsSometimes people just like a moan mate!
9 Go to commentsexcellent idea ! rugby needs this 💪
19 Go to comments